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Tuesday, October 10, 2023

Wehrmacht

From Wikipedia, the free encyclopedia
Wehrmacht
Red flag with black Nordic cross, black swastika in the center and black iron cross in the upper left corner
Reichskriegsflagge, the war flag and naval ensign of the Wehrmacht (1938–1945 version)
Black cross with white and black outline
Emblem of the Wehrmacht, the Balkenkreuz, a stylized version of the Iron Cross seen in varying proportions
MottoGott mit uns
Founded16 March 1935; 88 years ago
Disbanded20 September 1945; 78 years ago
Service branches
HeadquartersMaybach II, Wünsdorf
52.1826°N 13.4741°E
Leadership
Supreme Commander
(1935–1945)
Commander-in-chief
(1935–1938)
Minister of War
(1935–1938)
Werner von Blomberg
Commander-in-chief of the Wehrmacht High CommandWilhelm Keitel
Personnel
Military age18–45
Conscription1–2 years; compulsory service
Reaching military
age annually
700,000 (1935)
Active personnel18,000,000 (total served)
Expenditures
Budget
Percent of GDP
  • 25% (1939)
  • 75% (1944)
Industry
Domestic suppliers

See list
Foreign suppliers
Annual exports245 million ℛℳ (1939) (€1090 million in 2021)
Related articles
HistoryHistory of Germany during World War II
Ranks

The Wehrmacht (German pronunciation: [ˈveːɐ̯maxt] , lit.'defence force') were the unified armed forces of Nazi Germany from 1935 to 1945. It consisted of the Heer (army), the Kriegsmarine (navy) and the Luftwaffe (air force). The designation "Wehrmacht" replaced the previously used term Reichswehr and was the manifestation of the Nazi regime's efforts to rearm Germany to a greater extent than the Treaty of Versailles permitted.

After the Nazi rise to power in 1933, one of Adolf Hitler's most overt and audacious moves was to establish the Wehrmacht, a modern offensively-capable armed force, fulfilling the Nazi régime's long-term goals of regaining lost territory as well as gaining new territory and dominating its neighbours. This required the reinstatement of conscription and massive investment and defense spending on the arms industry.

The Wehrmacht formed the heart of Germany's politico-military power. In the early part of the Second World War, the Wehrmacht employed combined arms tactics (close-cover air-support, tanks and infantry) to devastating effect in what became known as Blitzkrieg (lightning war). Its campaigns in France (1940), the Soviet Union (1941) and North Africa (1941/42) are regarded by historians as acts of boldness. At the same time, the far-flung advances strained the Wehrmacht's capacity to the breaking point, culminating in its first major defeat in the Battle of Moscow (1941); by late 1942, Germany was losing the initiative in all theatres. The German operational art proved no match to the war-making abilities of the Allied coalition, making the Wehrmacht's weaknesses in strategy, doctrine, and logistics apparent.

Closely cooperating with the SS and the Einsatzgruppen, the German armed forces committed numerous war crimes (despite later denials and promotion of the myth of the clean Wehrmacht). The majority of the war crimes took place in the Soviet Union, Poland, Yugoslavia, Greece, and Italy, as part of the war of annihilation against the Soviet Union, the Holocaust and Nazi security warfare.

During World War II about 18 million men served in the Wehrmacht. By the time the war ended in Europe in May 1945, German forces (consisting of the Heer, the Kriegsmarine, the Luftwaffe, the Waffen-SS, the Volkssturm, and foreign collaborator units) had lost approximately 11,300,000 men, about 5,318,000 of whom were missing, killed or died in captivity. Only a few of the Wehrmacht's upper leadership went on trial for war crimes, despite evidence suggesting that more were involved in illegal actions. According to Ian Kershaw, most of the three million Wehrmacht soldiers who invaded the USSR participated in war crimes.

Origin

Etymology

The German term "Wehrmacht" stems from the compound word of German: wehren, "to defend" and Macht, "power, force". It has been used to describe any nation's armed forces; for example, Britische Wehrmacht meaning "British Armed Forces". The Frankfurt Constitution of 1849 designated all German military forces as the "German Wehrmacht", consisting of the Seemacht (sea force) and the Landmacht (land force). In 1919, the term Wehrmacht also appears in Article 47 of the Weimar Constitution, establishing that: "The Reich's President holds supreme command of all armed forces [i.e. the Wehrmacht] of the Reich". From 1919, Germany's national defense force was known as the Reichswehr, a name that was dropped in favor of Wehrmacht on 21 May 1935.

While the term Wehrmacht has been associated, both in the German and English languages, with the German armed forces of 1935–45 since the Second World War, before 1945 the term was used in the German language in a more general sense for a national defense force. For instance, the German-aligned formations of Poles raised during the First World War were known as the Polnische Wehrmacht ('Polish Wehrmacht', 'Polish Defense Force') in German.

Background

Reichswehr soldiers swearing the Hitler oath in August 1934

In January 1919, after World War I ended with the signing of the armistice of 11 November 1918, the armed forces were dubbed Friedensheer (peace army). In March 1919, the national assembly passed a law founding a 420,000-strong preliminary army, the Vorläufige Reichswehr. The terms of the Treaty of Versailles were announced in May, and in June, Germany signed the treaty that, among other terms, imposed severe constraints on the size of Germany's armed forces. The army was limited to one hundred thousand men with an additional fifteen thousand in the navy. The fleet was to consist of at most six battleships, six cruisers, and twelve destroyers. Submarines, tanks and heavy artillery were forbidden and the air-force was dissolved. A new post-war military, the Reichswehr, was established on 23 March 1921. General conscription was abolished under another mandate of the Versailles treaty.

The Reichswehr was limited to 115,000 men, and thus the armed forces, under the leadership of Hans von Seeckt, retained only the most capable officers. The American historians Alan Millet and Williamson Murray wrote "In reducing the officers corps, Seeckt chose the new leadership from the best men of the general staff with ruthless disregard for other constituencies, such as war heroes and the nobility." Seeckt's determination that the Reichswehr be an elite cadre force that would serve as the nucleus of an expanded military when the chance for restoring conscription came essentially led to the creation of a new army, based upon, but very different from, the army that existed in World War I. In the 1920s, Seeckt and his officers developed new doctrines that emphasized speed, aggression, combined arms and initiative on the part of lower officers to take advantage of momentary opportunities. Though Seeckt retired in 1926, his influence on the army was still apparent when it went to war in 1939.

Germany was forbidden to have an air force by the Versailles treaty; nonetheless, Seeckt created a clandestine cadre of air force officers in the early 1920s. These officers saw the role of an air force as winning air superiority, strategic bombing, and close air support. That the Luftwaffe did not develop a strategic bombing force in the 1930s was not due to a lack of interest, but because of economic limitations. The leadership of the Navy led by Grand Admiral Erich Raeder, a close protégé of Alfred von Tirpitz, was dedicated to the idea of reviving Tirpitz's High Seas Fleet. Officers who believed in submarine warfare led by Admiral Karl Dönitz were in a minority before 1939.

By 1922, Germany had begun covertly circumventing the conditions of the Versailles treaty. A secret collaboration with the Soviet Union began after the Treaty of Rapallo. Major-General Otto Hasse traveled to Moscow in 1923 to further negotiate the terms. Germany helped the Soviet Union with industrialization and Soviet officers were to be trained in Germany. German tank and air-force specialists could exercise in the Soviet Union and German chemical weapons research and manufacture would be carried out there along with other projects. In 1924 a fighter-pilot school was established at Lipetsk, where several hundred German air force personnel received instruction in operational maintenance, navigation, and aerial combat training over the next decade until the Germans finally left in September 1933. However, the arms buildup was done in secrecy, until Hitler came to power and it received broad political support.

Nazi rise to power

After the death of President Paul von Hindenburg on 2 August 1934, Adolf Hitler assumed the office of President of Germany, and thus became commander in chief. In February 1934, the Defence Minister Werner von Blomberg, acting on his own initiative, had all of the Jews serving in the Reichswehr given an automatic and immediate dishonorable discharge. Again, on his own initiative Blomberg had the armed forces adopt Nazi symbols into their uniforms in May 1934. In August of the same year, on Blomberg's initiative and that of the Ministeramt chief General Walther von Reichenau, the entire military took the Hitler oath, an oath of personal loyalty to Hitler. Hitler was most surprised at the offer; the popular view that Hitler imposed the oath on the military is false. The oath read: "I swear by God this sacred oath that to the Leader of the German empire and people, Adolf Hitler, supreme commander of the armed forces, I shall render unconditional obedience and that as a brave soldier I shall at all times be prepared to give my life for this oath".

By 1935, Germany was openly flouting the military restrictions set forth in the Versailles Treaty: German rearmament was announced on 16 March with the "Edict for the Buildup of the Wehrmacht" (German: Gesetz für den Aufbau der Wehrmacht) and the reintroduction of conscription. While the size of the standing army was to remain at about the 100,000-man mark decreed by the treaty, a new group of conscripts equal to this size would receive training each year. The conscription law introduced the name "Wehrmacht"; the Reichswehr was officially renamed the Wehrmacht on 21 May 1935. Hitler's proclamation of the Wehrmacht's existence included a total of no less than 36 divisions in its original projection, contravening the Treaty of Versailles in grandiose fashion. In December 1935, General Ludwig Beck added 48 tank battalions to the planned rearmament program. Hitler originally set a time frame of 10 years for remilitarization, but soon shortened it to four years. With the remilitarization of the Rhineland and the Anschluss, the German Reich's territory increased significantly, providing a larger population pool for conscription.

Personnel and recruitment

Men standing in line waiting for a medical check
Inspection of German conscripts

Recruitment for the Wehrmacht was accomplished through voluntary enlistment and conscription, with 1.3 million being drafted and 2.4 million volunteering in the period 1935–1939. The total number of soldiers who served in the Wehrmacht during its existence from 1935 to 1945 is believed to have approached 18.2 million. The German military leadership originally aimed at a homogeneous military, possessing traditional Prussian military values. However, with Hitler's constant wishes to increase the Wehrmacht's size, the Army was forced to accept citizens of lower class and education, decreasing internal cohesion and appointing officers who lacked real-war experience from previous conflicts, especially World War I and the Spanish Civil War.

The effectiveness of officer training and recruitment by the Wehrmacht has been identified as a major factor in its early victories as well as its ability to keep the war going as long as it did even as the war turned against Germany.

Common themes in Nazi propaganda revolved around national humiliation after the Treaty of Versailles, seen as a diktat (dictation) by Germans. This poster expresses that the corridor of "Danzig is German"; ceded to Poland as maritime access, it simultaneously divided East Prussia from the rest of Germany.

As the Second World War intensified, Kriegsmarine and Luftwaffe personnel were increasingly transferred to the army, and "voluntary" enlistments in the SS were stepped up as well. Following the Battle of Stalingrad in 1943, fitness and physical health standards for Wehrmacht recruits were drastically lowered, with the regime going so far as to create "special diet" battalions for men with severe stomach ailments. Rear-echelon personnel were more often sent to front-line duty wherever possible, especially during the final two years of the war where, inspired by constant propaganda, the oldest and youngest were being recruited and driven by instilled fear and fanaticism to serve on the fronts and, often, to fight to the death, whether judged to be cannon fodder or elite troops.

An African in German uniform sitting on a chair, next to two other soldiers having a cigarette
An Afro-Arab soldier of the Free Arabian Legion

Prior to World War II, the Wehrmacht strove to remain a purely ethnic German force; as such, minorities within and outside of Germany, such as the Czechs in annexed Czechoslovakia, were exempted from military service after Hitler's takeover in 1938. Foreign volunteers were generally not accepted in the German armed forces prior to 1941. With the invasion of the Soviet Union in 1941, the government's positions changed. German propagandists wanted to present the war not as a purely German concern, but as a multi-national crusade against the so-called Jewish Bolshevism. Hence, the Wehrmacht and the SS began to seek out recruits from occupied and neutral countries across Europe: the Germanic populations of the Netherlands and Norway were recruited largely into the SS, while "non-Germanic" people were recruited into the Wehrmacht. The "voluntary" nature of such recruitment was often dubious, especially in the later years of the war when even Poles living in the Polish Corridor were declared "ethnic Germans" and drafted.

After Germany's defeat in the Battle of Stalingrad, the Wehrmacht also made substantial use of personnel from the Soviet Union, including the Caucasian Muslim Legion, Turkestan Legion, Crimean Tatars, ethnic Ukrainians and Russians, Cossacks, and others who wished to fight against the Soviet regime or who were otherwise induced to join. Between 15,000 and 20,000 anti-communist White émigrés who had left Russia after the Russian Revolution joined the ranks of the Wehrmacht and Waffen-SS, with 1,500 acting as interpreters and more than 10,000 serving in the guard force of the Russian Protective Corps.


1939 1940 1941 1942 1943 1944 1945
Heer 3,737,000 4,550,000 5,000,000 5,800,000 6,550,000 6,510,000 5,300,000
Luftwaffe 400,000 1,200,000 1,680,000 1,700,000 1,700,000 1,500,000 1,000,000
Kriegsmarine 50,000 250,000 404,000 580,000 780,000 810,000 700,000
Waffen–SS 35,000 50,000 150,000 230,000 450,000 600,000 830,000
Total 4,220,000 6,050,000 7,234,000 8,310,000 9,480,000 9,420,000 7,830,000

Women in the Wehrmacht

Wehrmachthelferinnen in occupied Paris, 1940

In the beginning, women in Nazi Germany were not involved in the Wehrmacht, as Hitler ideologically opposed conscription for women, stating that Germany would "not form any section of women grenade throwers or any corps of women elite snipers." However, with many men going to the front, women were placed in auxiliary positions within the Wehrmacht, called Wehrmachtshelferinnen (lit.'Female Wehrmacht Helper'), participating in tasks as:

  • telephone, telegraph and transmission operators,
  • administrative clerks, typists and messengers,
  • operators of listening equipment, in anti-aircraft defense, operating projectors for anti-aircraft defense, employees within meteorology services, and auxiliary civil defense personnel
  • volunteer nurses in military health service, as the German Red Cross or other voluntary organizations.

They were placed under the same authority as (Hiwis), auxiliary personnel of the army (German: Behelfspersonal) and they were assigned to duties within the Reich, and to a lesser extent, in the occupied territories, for example in the general government of occupied Poland, in France, and later in Yugoslavia, in Greece and in Romania.

By 1945, 500,000 women were serving as Wehrmachtshelferinnen, half of whom were volunteers, while the other half performed obligatory services connected to the war effort (German: Kriegshilfsdienst).

Command structure

Drawing of the structure of the Wehrmacht (1935–1938)
Structure of the Wehrmacht (1935–1938)
Drawing of the structure of the Wehrmacht (1939–1945)
Structure of the Wehrmacht (1939–1945)

Legally, the commander-in-chief of the Wehrmacht was Adolf Hitler in his capacity as Germany's head of state, a position he gained after the death of President Paul von Hindenburg in August 1934. With the creation of the Wehrmacht in 1935, Hitler elevated himself to Supreme Commander of the Armed Forces, retaining the position until his suicide on 30 April 1945. The title of Commander-in-Chief was given to the Minister of the Reichswehr Werner von Blomberg, who was simultaneously renamed the Reich Minister of War. Following the Blomberg-Fritsch Affair, Blomberg resigned and Hitler abolished the Ministry of War. As a replacement for the ministry, the Wehrmacht High Command Oberkommando der Wehrmacht (OKW), under Field Marshal Wilhelm Keitel, was put in its place.

Placed under the OKW were the three branch High Commands: Oberkommando des Heeres (OKH), Oberkommando der Marine (OKM), and Oberkommando der Luftwaffe (OKL). The OKW was intended to serve as a joint command and coordinate all military activities, with Hitler at the top. Though many senior officers, such as von Manstein, had advocated for a real tri-service Joint Command, or appointment of a single Joint Chief of Staff, Hitler refused. Even after the defeat at Stalingrad, Hitler refused, stating that Göring as Reichsmarschall and Hitler's deputy, would not submit to someone else or see himself as an equal to other service commanders. However, a more likely reason was Hitler feared it would break his image of having the "Midas touch" concerning military strategy.

With the creation of the OKW, Hitler solidified his control over the Wehrmacht. Showing restraint at the beginning of the war, Hitler also became increasingly involved in military operations at every scale.

Additionally, there was a clear lack of cohesion between the three High Commands and the OKW, as senior generals were unaware of the needs, capabilities and limitations of the other branches. With Hitler serving as Supreme Commander, branch commands were often forced to fight for influence with Hitler. However, influence with Hitler not only came from rank and merit but also who Hitler perceived as loyal, leading to inter-service rivalry, rather than cohesion between his military advisers.

Branches

Army

Soldiers walking towards the camera
"Foot-mobile" infantry of the Wehrmacht, 1942

The German Army furthered concepts pioneered during World War I, combining ground (Heer) and air force (Luftwaffe) assets into combined arms teams. Coupled with traditional war fighting methods such as encirclements and the "battle of annihilation", the Wehrmacht managed many lightning quick victories in the first year of World War II, prompting foreign journalists to create a new word for what they witnessed: Blitzkrieg. Germany's immediate military success on the field at the start of the Second World War coincides the favorable beginning they achieved during the First World War, a fact which some attribute to their superior officer corps.

The Heer entered the war with a minority of its formations motorized; infantry remained approximately 90% foot-borne throughout the war, and artillery was primarily horse-drawn. The motorized formations received much attention in the world press in the opening years of the war, and were cited as the reason for the success of the invasions of Poland (September 1939), Denmark and Norway (April 1940), Belgium, France, and Netherlands (May 1940), Yugoslavia and Greece (April 1941) and the early stage of Operation Barbarossa in the Soviet Union (June 1941).

After Hitler declared war on the United States in December 1941, the Axis powers found themselves engaged in campaigns against several major industrial powers while Germany was still in transition to a war economy. German units were then overextended, undersupplied, outmaneuvered, outnumbered and defeated by its enemies in decisive battles during 1941, 1942, and 1943 at the Battle of Moscow, the Siege of Leningrad, Stalingrad, Tunis in North Africa, and the Battle of Kursk.

Armored vehicle convoy moving through a dessert
A tank destroyer battalion, part of the 21 Panzer Division of the Afrika Korps

The German Army was managed through mission-based tactics (rather than order-based tactics) which was intended to give commanders greater freedom to act on events and exploit opportunities. In public opinion, the German Army was, and sometimes still is, seen as a high-tech army. However, such modern equipment, while featured much in propaganda, was often only available in relatively small numbers. Only 40% to 60% of all units in the Eastern Front were motorized, baggage trains often relied on horse-drawn trailers due to poor roads and weather conditions in the Soviet Union, and for the same reasons many soldiers marched on foot or used bicycles as bicycle infantry. As the fortunes of war turned against them, the Germans were in constant retreat from 1943 and onward.

The Panzer divisions were vital to the German army's early success. In the strategies of the Blitzkrieg, the Wehrmacht combined the mobility of light tanks with airborne assault to quickly progress through weak enemy lines, enabling the German army to quickly and brutally take over Poland and France. These tanks were used to break through enemy lines, isolating regiments from the main force so that the infantry behind the tanks could quickly kill or capture the enemy troops.

Air Force

German paratrooper landing with others in the sky behind him
German paratroopers landing on Crete

Originally outlawed by the Treaty of Versailles, the Luftwaffe was officially established in 1935, under the leadership of Hermann Göring. First gaining experience in the Spanish Civil War, it was a key element in the early Blitzkrieg campaigns (Poland, France 1940, USSR 1941). The Luftwaffe concentrated production on fighters and (small) tactical bombers, like the Messerschmitt Bf 109 fighter and the Junkers Ju 87 Stuka dive bomber. The planes cooperated closely with the ground forces. Overwhelming numbers of fighters assured air-supremacy, and the bombers would attack command- and supply-lines, depots, and other support targets close to the front. The Luftwaffe would also be used to transport paratroopers, as first used during Operation Weserübung. Due to the Army's sway with Hitler, the Luftwaffe was often subordinated to the Army, resulting in it being used as a tactical support role and losing its strategic capabilities.

The Western Allies' strategic bombing campaign against German industrial targets, particularly the round the clock Combined Bomber Offensive and Defence of the Reich, deliberately forced the Luftwaffe into a war of attrition. With German fighter force destroyed the Western Allies had air supremacy over the battlefield, denying support to German forces on the ground and using its own fighter-bombers to attack and disrupt. Following the losses in Operation Bodenplatte in 1945, the Luftwaffe was no longer an effective force.

Navy

Several people looking at a submarine with its crew on the deck
Karl Dönitz inspecting the Saint-Nazaire submarine base in France, June 1941

The Treaty of Versailles disallowed submarines, while limiting the size of the Reichsmarine to six battleships, six cruisers, and twelve destroyers. Following the creation of the Wehrmacht, the navy was renamed the Kriegsmarine.

With the signing of the Anglo-German Naval Agreement, Germany was allowed to increase its navy's size to be 35:100 tonnage of the Royal Navy, and allowed for the construction of U-boats. This was partly done to appease Germany, and because Britain believed the Kriegsmarine would not be able to reach the 35% limit until 1942. The navy was also prioritized last in the German rearmament scheme, making it the smallest of the branches.

In the Battle of the Atlantic, the initially successful German U-boat fleet arm was eventually defeated due to Allied technological innovations like sonar, radar, and the breaking of the Enigma code.

Large surface vessels were few in number due to construction limitations by international treaties prior to 1935. The "pocket battleships" Admiral Graf Spee and Admiral Scheer were important as commerce raiders only in the opening year of the war. No aircraft carrier was operational, as German leadership lost interest in the Graf Zeppelin which had been launched in 1938.

Following the loss of the German battleship Bismarck in 1941, with Allied air-superiority threatening the remaining battle-cruisers in French Atlantic harbors, the ships were ordered to make the Channel Dash back to German ports. Operating from fjords along the coast of Norway, which had been occupied since 1940, convoys from North America to the Soviet port of Murmansk could be intercepted though the Tirpitz spent most of her career as fleet in being. After the appointment of Karl Dönitz as Grand Admiral of the Kriegsmarine (in the aftermath of the Battle of the Barents Sea), Germany stopped constructing battleships and cruisers in favor of U-boats. Though by 1941, the navy had already lost a number of its large surface ships, which could not be replenished during the war.

The Kriegsmarine's most significant contribution to the German war effort was the deployment of its nearly 1,000 U-boats to strike at Allied convoys. The German naval strategy was to attack the convoys in an attempt to prevent the United States from interfering in Europe and to starve out the British. Karl Doenitz, the U-Boat Chief, began unrestricted submarine warfare which cost the Allies 22,898 men and 1,315 ships. The U-boat war remained costly for the Allies until early spring of 1943 when the Allies began to use countermeasures against U-Boats such as the use of Hunter-Killer groups, airborne radar, torpedoes and mines like the FIDO. The submarine war cost the Kriegsmarine 757 U-boats, with more than 30,000 U-boat crewmen killed.

Coexistence with the Waffen-SS

Two soldiers in different uniforms sitting and looking over a map
An army Oberleutnant with a SS-Hauptsturmführer from the Waffen-SS in 1944

In the beginning, there was friction between the SS and the army, as the army feared the SS would attempt to become a legitimate part of the armed forces of Nazi Germany, partly due to the fighting between the limited armaments, and the perceived fanaticism towards Nazism. However, on 17 August 1938, Hitler codified the role of the SS and the army in order to end the feud between the two. The arming of the SS was to be "procured from the Wehrmacht upon payment", however "in peacetime, no organizational connection with the Wehrmacht exists." The army was however allowed to check the budget of the SS and inspect the combat readiness of the SS troops. In the event of mobilization, the Waffen-SS field units could be placed under the operational control of the OKW or the OKH. All decisions regarding this would be at Hitler's personal discretion.

Though there existed conflict between the SS and Wehrmacht, many SS officers were former army officers, which ensured continuity and understanding between the two. Throughout the war, army and SS soldiers worked together in various combat situations, creating bonds between the two groups. Guderian noted that every day the war continued the Army and the SS became closer together. Towards the end of the war, army units would even be placed under the command of the SS, in Italy and the Netherlands. The relationship between the Wehrmacht and the SS improved; however, the Waffen-SS was never considered "the fourth branch of the Wehrmacht." 

Theatres and campaigns

The Wehrmacht directed combat operations during World War II (from 1 September 1939 – 8 May 1945) as the German Reich's armed forces umbrella command-organization. After 1941 the OKH became the de facto Eastern Theatre higher-echelon command-organization for the Wehrmacht, excluding Waffen-SS except for operational and tactical combat purposes. The OKW conducted operations in the Western Theatre. The operations by the Kriegsmarine in the North and Mid-Atlantic can also be considered as separate theatres, considering the size of the area of operations and their remoteness from other theatres.

The Wehrmacht fought on other fronts, sometimes three simultaneously; redeploying troops from the intensifying theatre in the East to the West after the Normandy landings caused tensions between the General Staffs of both the OKW and the OKH – as Germany lacked sufficient materiel and manpower for a two-front war of such magnitude.

Eastern theatre

Several soldiers walking away from a burning house.
German troops in the Soviet Union, October 1941

Major campaigns and battles in Eastern and Central Europe included:

Western theatre

Soldiers walking down Champs-Élysées, with Arc de Triomphe in the back
German soldiers in occupied Paris

Mediterranean theatre

German tank in the foreground with a burning wreck in the back
German tanks during a counter-attack in North Africa, 1942

For a time, the Axis Mediterranean Theatre and the North African Campaign were conducted as a joint campaign with the Italian Army, and may be considered a separate theatre.

Casualties

Illustration of combat casualties during WWII
80% of the Wehrmacht's military deaths were in the Eastern Front.
Commemoration stone with names of fallen soldiers
A German war cemetery in Estonia

More than 6,000,000 soldiers were wounded during the conflict, while more than 11,000,000 became prisoners. In all, approximately 5,318,000 soldiers from Germany and other nationalities fighting for the German armed forces—including the Waffen-SS, Volkssturm and foreign collaborationist units—are estimated to have been killed in action, died of wounds, died in custody or gone missing in World War II. Included in this number are 215,000 Soviet citizens conscripted by Germany.

According to Frank Biess,

German casualties took a sudden jump with the defeat of the Sixth Army at Stalingrad in January 1943, when 180,310 soldiers were killed in one month. Among the 5.3 million Wehrmacht casualties during the Second World War, more than 80 per cent died during the last two years of the war. Approximately three-quarters of these losses occurred on the Eastern front (2.7 million) and during the final stages of the war between January and May 1945 (1.2 million).

Jeffrey Herf wrote that:

Whereas German deaths between 1941 and 1943 on the western front had not exceeded three per cent of the total from all fronts, in 1944 the figure jumped to about 14 per cent. Yet even in the months following D-day, about 68.5 per cent of all German battlefield deaths occurred on the eastern front, as a Soviet blitzkrieg in response devastated the retreating Wehrmacht.

In addition to the losses, at the hands of the elements and enemy fighting, at least 20,000 soldiers were executed as sentences by the military court. In comparison, the Red Army executed 135,000, France 102, the US 146 and the UK 40.

War crimes

Nazi propaganda had told Wehrmacht soldiers to wipe out what were variously called Jewish Bolshevik subhumans, the Mongol hordes, the Asiatic flood and the red beast. While the principal perpetrators of the civil suppression behind the front lines amongst German armed forces were the Nazi German "political" armies (the SS-Totenkopfverbände, the Waffen-SS, and the Einsatzgruppen, which were responsible for mass-murders, primarily by implementation of the so-called Final Solution of the Jewish Question in occupied territories), the traditional armed forces represented by the Wehrmacht committed and ordered war crimes of their own (e.g. the Commissar Order), particularly during the invasion of Poland in 1939 and later in the war against the Soviet Union.

Cooperation with the SS

Prior to the outbreak of war, Hitler informed senior Wehrmacht officers that actions "which would not be in the taste of German generals", would take place in occupied areas and ordered them that they "should not interfere in such matters but restrict themselves to their military duties". Some Wehrmacht officers initially showed a strong dislike for the SS and objected to the army committing war crimes with the SS, though these objections were not against the idea of the atrocities themselves. Later during the war, relations between the SS and Wehrmacht improved significantly. The common soldier had no qualms with the SS, and often assisted them in rounding up civilians for executions.

The Army's Chief of Staff General Franz Halder in a directive declared that in the event of guerrilla attacks, German troops were to impose "collective measures of force" by massacring entire villages. Cooperation between the SS Einsatzgruppen and the Wehrmacht involved supplying the death squads with weapons, ammunition, equipment, transport, and even housing. Partisan fighters, Jews, and Communists became synonymous enemies of the Nazi regime and were hunted down and exterminated by the Einsatzgruppen and Wehrmacht alike, something revealed in numerous field journal entries from German soldiers. With the implementation of the Hunger Plan, hundreds of thousands, perhaps millions, of Soviet civilians were deliberately starved to death, as the Germans seized food for their armies and fodder for their draft horses. According to Thomas Kühne: "an estimated 300,000–500,000 people were killed during the Wehrmacht's Nazi security warfare in the Soviet Union."

While secretly listening to conversations of captured German generals, British officials became aware that the German Army had taken part in the atrocities and mass-murder of Jews and were guilty of war crimes. American officials learned of the Wehrmacht's atrocities in much the same way. Taped conversations of soldiers detained as POWs revealed how some of them voluntarily participated in mass executions.

Crimes against civilians

Dead civilians shot in reprisal by German paratroopers
Civilians executed by German paratroopers in Kondomari
Soldiers escorting civilians with bound hands
German troops marching civilians to execution

During the war, the Wehrmacht committed numerous war crimes against the civilian population in occupied countries. This includes massacres of civilians and running forced brothels in occupied areas.

Massacres would in many cases come as reprisals for acts of resistance. With these reprisals, the Wehrmacht's response would vary in severity and method, depending on the scale of resistance and whether it was in East or West Europe. Often, the number of hostages to be shot was calculated based on a ratio of 100 hostages executed for every German soldier killed and 50 hostages executed for every German soldier wounded. Other times civilians would be rounded up and shot with machine guns.

To combat German officials' fear of venereal disease and masturbation, the Wehrmacht established numerous brothels throughout Nazi Germany and its occupied territories. Women would often be kidnapped off the streets and forced to work in the brothels, with an estimated minimum of 34,140 women being forced to serve as prostitutes.

Crimes against POWs

Soldiers putting blindfolded people up against a wall
Sixteen blindfolded Partisan youth awaiting execution by German forces in Serbia, 20 August 1941

While the Wehrmacht's prisoner-of-war camps for inmates from the west generally satisfied the humanitarian requirement prescribed by international law, prisoners from Poland and the USSR were incarcerated under significantly worse conditions. Between the launching of Operation Barbarossa in the summer of 1941 and the following spring, 2.8 million of the 3.2 million Soviet prisoners taken died while in German hands.

Criminal and genocidal organization

Among German historians, the view that the Wehrmacht had participated in wartime atrocities, particularly on the Eastern Front, grew in the late 1970s and the 1980s. In the 1990s, public conception in Germany was influenced by controversial reactions and debates about the exhibition of war crime issues.

The Israeli historian Omer Bartov, a leading expert on the Wehrmacht wrote in 2003 that the Wehrmacht was a willing instrument of genocide, and that it is untrue that the Wehrmacht was an apolitical, professional fighting force that had only a few "bad apples". Bartov argues that far from being the "untarnished shield", as successive German apologists stated after the war, the Wehrmacht was a criminal organization. Likewise, the historian Richard J. Evans, a leading expert on modern German history, wrote that the Wehrmacht was a genocidal organization. The historian Ben H. Shepherd writes that "There is now clear agreement amongst historians that the German Wehrmacht ... identified strongly with National Socialism and embroiled itself in the criminality of the Third Reich." British historian Ian Kershaw concludes that the Wehrmacht's duty was to ensure that the people who met Hitler's requirements of being part of the Aryan Herrenvolk ("Aryan master race") had living space. He wrote that:

The Nazi revolution was broader than just the Holocaust. Its second goal was to eliminate Slavs from central and eastern Europe and to create a Lebensraum for Aryans. ... As Bartov (The Eastern Front; Hitler's Army) shows, it barbarised the German armies on the eastern front. Most of their three million men, from generals to ordinary soldiers, helped exterminate captured Slav soldiers and civilians. This was sometimes cold and deliberate murder of individuals (as with Jews), sometimes generalised brutality and neglect. ... German soldiers' letters and memoirs reveal their terrible reasoning: Slavs were 'the Asiatic-Bolshevik' horde, an inferior but threatening race.

Several high-ranking Wehrmacht officers, including Hermann Hoth, Georg von Küchler, Georg-Hans Reinhardt, Karl von Roques, Walter Warlimont and others, were convicted of war crimes and crimes against humanity at the High Command Trial given sentences ranging from time served to life.

Resistance to the Nazi regime

Several people looking inside a destroyed room
Martin Bormann, Hermann Göring, and Bruno Loerzer surveying the damage made by the 20 July plot

Originally, there was little resistance within the Wehrmacht, as Hitler actively went against the Treaty of Versailles and attempted to recover the army's honor. The first major resistance began in 1938 with the Oster conspiracy, where several members of the military wanted to remove Hitler from power, as they feared a war with Czechoslovakia would ruin Germany. However, following the success of the early campaigns in Poland, Scandinavia and France, belief in Hitler was restored. With the defeat in Stalingrad, trust in Hitler's leadership began to wane. This caused an increase in resistance within the military. The resistance culminated in the 20 July plot (1944), when a group of officers led by Claus von Stauffenberg attempted to assassinate Hitler. The attempt failed, resulting in the execution of 4,980 people and the standard military salute being replaced with the Hitler salute.

Some members of the Wehrmacht did save Jews and non-Jews from the concentration camps and/or mass murder. Anton Schmid – a sergeant in the army – helped between 250 and 300 Jewish men, women, and children escape from the Vilna Ghetto in Lithuania. He was court-martialed and executed as a consequence. Albert Battel, a reserve officer stationed near the Przemysl ghetto, blocked an SS detachment from entering it. He then evacuated up to 100 Jews and their families to the barracks of the local military command, and placed them under his protection. Wilm Hosenfeld – an army captain in Warsaw – helped, hid, or rescued several Poles, including Jews, in occupied Poland. He helped the Polish-Jewish composer Władysław Szpilman, who was hiding among the city's ruins, by supplying him with food and water.

According to Wolfram Wette, only three Wehrmacht soldiers are known for being executed for rescuing Jews: Anton Schmid, Friedrich Rath and Friedrich Winking.

After World War II

German Instrument of Surrender, 8 May 1945 – Berlin-Karlshorst

Following the unconditional surrender of the Wehrmacht, which went into effect on 8 May 1945, some Wehrmacht units remained active, either independently (e.g. in Norway), or under Allied command as police forces. The last Wehrmacht unit to come under Allied control was an isolated weather station in Svalbard, which formally surrendered to a Norwegian relief ship on 4 September.

On 20 September 1945, with Proclamation No. 2 of the Allied Control Council (ACC), "[a]ll German land, naval and air forces, the S.S., S.A., S.D. and Gestapo, with all their organizations, staffs and institution, including the General Staff, the Officers' corps, the Reserve Corps, military schools, war veterans' organizations, and all other military and quasi-military organizations, together with all clubs and associations which serve to keep alive the military tradition in Germany, shall be completely and finally abolished in accordance with the methods and procedures to be laid down by the Allied Representatives." The Wehrmacht was officially dissolved by the ACC Law 34 on 20 August 1946, which proclaimed the OKW, OKH, the Ministry of Aviation and the OKM to be "disbanded, completely liquidated and declared illegal".

Military operational legacy

Immediately following the end of the war, many were quick to dismiss the Wehrmacht due to its failures and claim allied superiority. However, historians have since reevaluated the Wehrmacht in terms of fighting power and tactics, giving it a more favorable assessment, with some calling it one of the best in the world,  partly due to its ability to regularly inflict higher losses than it received, while it fought outnumbered and outgunned.

Israeli military historian Martin van Creveld, who attempted to examine the military force of the Wehrmacht in a purely military context, concluded: "The German army was a superb fighting organization. In point of morale, elan, troop cohesion and resilience, it probably had no equal among twentieth century armies." German historian Rolf-Dieter Müller comes to the following conclusion: "In the purely military sense [...] you can indeed say that the impression of a superior fighting force rightly exists. The proverbial efficiency was even greater than previously thought, because the superiority of the opponent was much higher than at that time German officers suspected. The analysis of Russian archive files finally gives us a clear picture in this regard." Strategic thinker and professor Colin S. Gray believed that the Wehrmacht possessed outstanding tactical and operational capabilities. However, following a number of successful campaigns, German policy began to have victory disease, asking the Wehrmacht to do the impossible. The continued use of the Blitzkrieg also led to Soviets learning the tactic and using it against the Wehrmacht.

Historical negationism

Soon after the war ended, former Wehrmacht officers, veterans' groups and various far-right authors began to state that the Wehrmacht was an apolitical organization which was largely innocent of Nazi Germany's war crimes and crimes against humanity. Attempting to benefit from the clean Wehrmacht myth, veterans of the Waffen-SS declared that the organisation had virtually been a branch of the Wehrmacht and therefore had fought as "honourably" as it. Its veterans organisation, HIAG, attempted to cultivate a myth of their soldiers having been "Soldiers like any other".

Post-war militaries

Former Wehrmacht generals Adolf Heusinger and Hans Speidel being sworn into the newly founded Bundeswehr on 12 November 1955

Following the division of Germany, many former Wehrmacht and SS officers in West Germany feared a Soviet invasion of the country. To combat this, several prominent officers created a secret army, unknown to the general public and without mandate from the Allied Control Authority or the West German government.

By the mid-1950s, tensions of the Cold War led to the creation of separate military forces in the Federal Republic of Germany and the socialist German Democratic Republic. The West German military, officially created on 5 May 1955, took the name Bundeswehr (lit.'Federal Defence'). Its East German counterpart—created on 1 March 1956—took the name National People's Army (German: Nationale Volksarmee). Both organizations employed many former Wehrmacht members, particularly in their formative years, though neither organization considered themselves successors to the Wehrmacht. However, according to historian Hannes Heer "Germans still have a hard time, when it comes to openly dealing with their Nazi past", as such of the 50 military bases named after Wehrmacht soldiers, only 16 bases have changed names.

Wehrmacht veterans in West Germany have received pensions through the War Victims' Assistance Act (German: Bundesversorgungsgesetz) from the government. According to The Times of Israel, "The benefits come through the Federal Pension Act, which was passed in 1950 to support war victims, whether civilians or veterans of the Wehrmacht or Waffen-SS."

Economy of Nazi Germany

From Wikipedia, the free encyclopedia
 
Economy of Nazi Germany
Prisoner work force in the construction of the Valentin submarine pens for U-boats, in 1944
LocationThe Third Reich and German-occupied Europe; forced labor predominantly from Nazi-occupied Poland and the Nazi-occupied Soviet Union
PeriodGreat Depression and World War II (1933–1945)

Like many other nations at the time, Germany suffered the economic effects of the Great Depression, with unemployment soaring after the Wall Street Crash of 1929. When Adolf Hitler became Chancellor of Germany in 1933, he introduced policies aimed at improving the economy. The changes included privatization of state owned industries, import tariffs, and an attempt to achieve autarky (national economic self-sufficiency). Weekly earnings increased by 19% in real terms from 1933 to 1939, but this was largely due to employees working longer hours, while the hourly wage rates remained close to the lowest levels reached during the Great Depression. In addition, reduced foreign trade meant rationing of consumer goods like poultry, fruit, and clothing for many Germans.

The Nazis believed in war as the primary engine of human progress, and argued that the purpose of a country's economy should be to enable that country to fight and win wars of expansion. As such, almost immediately after coming to power, they embarked on a vast program of military rearmament, which quickly dwarfed civilian investment. During the 1930s, Nazi Germany increased its military spending faster than any other state in peacetime, and the military eventually came to represent the majority of the German economy in the 1940s. This was funded mainly through deficit financing before the war, and the Nazis expected to cover their debt by plundering the wealth of conquered nations during and after the war. Such plunder did occur, but its results fell far short of Nazi expectations. The Nazi economy has been described as dirigiste by several scholars. Overall, according to historian Richard Overy, the Nazi war economy was a mixed economy that combined free markets with central planning; Overy describes it as being somewhere in between the command economy of the Soviet Union and the capitalist system of the United States.

The Nazi government developed a partnership with leading German business interests, who supported the goals of the regime and its war effort in exchange for advantageous contracts, subsidies, and the suppression of the trade union movement. Cartels and monopolies were encouraged at the expense of small businesses, even though the Nazis had received considerable electoral support from small business owners.

Nazi Germany maintained a supply of slave labor, composed of prisoners and concentration camp inmates, which was greatly expanded after the beginning of World War II. In Poland alone, some five million people (including Polish Jews) were used as slave labor throughout the war. Among the slave laborers in the occupied territories, hundreds of thousands were used by leading German corporations including Thyssen, Krupp, IG Farben, Bosch, Blaupunkt, Daimler-Benz, Demag, Henschel, Junkers, Messerschmitt, Siemens, and Volkswagen, as well as the Dutch corporation Philips. By 1944, slave labor made up one-quarter of Germany's entire civilian work force, and the majority of German factories had a contingent of prisoners.

Pre-war: 1933–1939

Recovery and rearmament

Germany's gross national product (GNP) and GNP deflator, year on year change in percentages, from 1926 to 1939
Development of GDP per capita, from 1930 to 1950

The Nazis came to power in the midst of the Great Depression. The unemployment rate at that point in time was close to 30%. At first, the new Nazi government continued the economic policies introduced by the government of Kurt von Schleicher in 1932 to combat the effects of the Depression. Hitler appointed Hjalmar Schacht, a former member of the German Democratic Party, as President of the Reichsbank in 1933 and Minister of Economics in 1934. The policies he inherited included a large public works programs supported by deficit spending—such as the construction of the Autobahn network—to stimulate the economy and reduce unemployment. These were programs that were planned to be undertaken by the Weimar Republic during conservative Paul von Hindenburg's presidency, and which the Nazis appropriated as their own after coming to power. Hjalmar Schacht created a scheme for deficit financing, in which capital projects were paid for with the issuance of promissory notes called Mefo bills, which could be traded by companies with each other. Schacht was one of the few finance ministers at the time to take advantage of the end of the gold standard to increase deficit spending. This was particularly useful in allowing Germany to rearm because the Mefo bills were not Reichsmarks and did not appear in the federal budget, so they helped conceal rearmament. When the notes were presented for payment, the Reichsbank printed money. This proved inadequate in 1938, when a large share of Mefo's five-year promissory notes fell due, so the government employed "highly dubious methods" where "banks were forced to buy government bonds, and the government took money from savings accounts and insurance companies" in order to pay the holders of Mefo bills, due mainly to a serious government cash shortage. Meanwhile, Schacht's administration achieved a rapid decline in the unemployment rate, the largest of any country during the Great Depression. By 1938, unemployment was practically extinct. Price controls kept inflation in check but also squeezed out small farmers. The government also introduced rent and wage controls.

The main economic priority of the Nazi government, which set it apart from previous German governments, was to rearm and rebuild Germany's military in preparation for an eventual war to conquer Lebensraum ("living space") in the East. Thus, at the beginning of his rule, Hitler said that "the future of Germany depends exclusively and only on the reconstruction of the Wehrmacht. All other tasks must cede precedence to the task of rearmament" and "in case of conflict between the demands of the Wehrmacht and demands for other purposes, the interests of the Wehrmacht must in every case have priority." This policy was implemented immediately, with military expenditures quickly growing far larger than the civilian work-creation programs. As early as June 1933, military spending for the year was budgeted to be three times larger than the spending on all civilian work-creation measures in 1932 and 1933 combined. Nazi Germany increased its military spending faster than any other state in peacetime, with the share of military spending rising from 1 percent to 10 percent of national income in the first two years of the regime alone. Eventually, it reached as high as 75 percent by 1944.

The first financial package for rearmament was adopted by the Nazi government in June 1933, and it was extremely ambitious. Schacht approved a figure of 35 billion ℛ︁ℳ︁ to be spent on military buildup over eight years. By comparison, the entire national income of Germany in 1933 was 43 billion ℛ︁ℳ︁, so the government was not merely proposing to increase military spending, but to make military production the primary focus of the national economy. Earlier in April, the cabinet had already agreed to release the military from the normal processes of budgetary oversight. Germany's international treaty obligations would not allow such extensive rearmament, so Hitler withdrew from the Geneva disarmament talks and from the League of Nations in October 1933. The German government feared that this might provoke immediate war with France at the time, but it did not. Still, the fear that war might come before Germany was prepared for it served to create a sense of urgency and reinforced the rearmament program. The army and the navy prepared to quickly expand their capacity and manpower. Plans were made to secretly build an air force (forbidden by the Treaty of Versailles), and the army prepared to introduce conscription within two years and grow to 300,000 soldiers by 1937 (also in violation of the Treaty of Versailles). At first, the navy did not benefit much from these rearmament plans, because Hitler wished to fight a land war in Europe and even hoped to make an alliance with the British Empire whereby the British would retain control of the seas. However, at the insistence of Admiral Erich Raeder, an expansion of the navy was also approved in 1934. This included the projected construction of 8 battleships (Versailles allowed a maximum of 6), 3 aircraft carriers, 8 cruisers (Versailles permitted 6), 48 destroyers (Versailles permitted 12), and 72 submarines (completely banned by the treaty). The unprecedented size of the military budget was impossible to hide from foreign observers. When Hitler was asked for an explanation, he claimed that Germany was "engaged only in essential maintenance and renewal expenditure."

The enormous military buildup was financed to a large extent through deficit spending, including Mefo bills. Between 1933 and 1939 the total revenue of the German government amounted to 62 billion ℛ︁ℳ︁, whereas government expenditure (up to 60% of which consisted of rearmament costs) exceeded 101 billion ℛ︁ℳ︁, thus causing a huge deficit and rising national debt (reaching 38 billion ℛ︁ℳ︁ in 1939). Joseph Goebbels, who otherwise mocked the government's financial experts as narrow-minded misers, expressed concern in his diary about the exploding deficit. Hitler and his economic team expected that the upcoming territorial expansion would provide the means of repaying the soaring national debt, by using the wealth and manpower of conquered nations.

An elaborate bureaucracy was created to regulate imports of raw materials and finished goods with the intention of eliminating foreign competition in the German marketplace and improving the nation's balance of payments. The Nazis encouraged the development of synthetic replacements for materials such as oil and textiles. As the market was experiencing a glut and prices for petroleum were low, the Nazi government made a profit-sharing agreement with IG Farben in 1933, guaranteeing them a 5 percent return on capital invested in their synthetic oil plant at Leuna. Any profits in excess of that amount would be turned over to the Reich. By 1936, Farben regretted making the deal, as the excess profits by then being generated had to be given to the government.

Hitler at a groundbreaking ceremony for a new section of the Reichsautobahn highway system, in 1933

In June 1933, the "Reinhardt Program" for infrastructure development was introduced. It combined indirect incentives, such as tax reductions, with direct public investment in waterways, railroads and highways. It was followed by similar initiatives resulting in great expansion of the German construction industry. Between 1933 and 1936, employment in construction rose from only 666,000 to over 2,000,000. Cars and other forms of motorized transport became increasingly attractive to the population, and the German motor industry boomed. However, Germany's attempt to achieve autarky meant imposing restrictions on foreign currency, which caused a shortage of rubber and fuel for civilian use by 1939 and resulted in "drastic restrictions on the use of motor vehicles".

Privatization and business ties

The Great Depression had spurred increased state ownership in most Western capitalist countries. This also took place in Germany during the last years of the Weimar Republic. However, after the Nazis took power, industries were privatized en masse. Several banks, shipyards, railway lines, shipping lines, welfare organizations, and more were privatized. The Nazi government took the stance that enterprises should be in private hands wherever possible. State ownership was to be avoided unless it was absolutely necessary for rearmament or the war effort, and even in those cases "the Reich often insisted on the inclusion in the contract of an option clause according to which the private firm operating the plant was entitled to purchase it." However, the privatization was "applied within a framework of increasing control of the state over the whole economy through regulation and political interference," as laid out in the 1933 Act for the Formation of Compulsory Cartels, which gave the government a role in regulating and controlling the cartels that had been earlier formed in the Weimar Republic under the Cartel Act of 1923. These had mostly regulated themselves from 1923 to 1933.

Companies privatized by the Nazis included the four major commercial banks in Germany, which had all come under public ownership during the prior years: Commerz– und Privatbank, Deutsche Bank und Disconto-Gesellschaft, Golddiskontbank and Dresdner Bank. Also privatized were the Vereinigte Stahlwerke A.G. (United Steelworks), the second largest joint-stock company in Germany (the largest was IG Farben) and Vereinigte Oberschlesische Hüttenwerke AG, a company controlling all of the metal production in the Upper Silesian coal and steel industry. Shares in the Deutsche Reichsbahn (German Railways), at the time the largest single public enterprise in the world, were slated to be sold in the fiscal year 1934-1935. The government also sold a number of shipbuilding companies, and enhanced private utilities at the expense of municipally owned utilities companies. Additionally, the Nazis privatized some public services which had been previously provided by the government, especially social and labor-related services, and these were mainly taken over by organizations affiliated with the Nazi Party that could be trusted to apply Nazi racial policies.

One of the reasons for the Nazi privatization policy was to cement the partnership between the government and business interests. Hitler believed that the lack of a precise economic programme was one of the Nazi Party's strengths, saying: "The basic feature of our economic theory is that we have no theory at all". Another reason was financial. As the Nazi government faced budget deficits due to its military spending, privatization was one of the methods it used to raise more funds. Between the fiscal years 1934–35 and 1937–38, privatization represented 1.4 percent of the German government's revenues. There was also an ideological motivation. Nazi ideology held entrepreneurship in high regard, and "private property was considered a precondition to developing the creativity of members of the German race in the best interest of the people." The Nazi leadership believed that "private property itself provided important incentives to achieve greater cost consciousness, efficiency gains, and technical progress." Adolf Hitler used Social Darwinist arguments to support this stance, cautioning against "bureaucratic managing of the economy" that would preserve the weak and "represent a burden to the higher ability, industry and value."

The month after being appointed Chancellor, Hitler made a personal appeal to German business leaders to help fund the Nazi Party for the crucial months that were to follow. He argued that the experience of Weimar Republic had shown that "'private enterprise cannot be maintained in the age of democracy.' Business was founded above all on the principles of personality and individual leadership. Democracy and liberalism led inevitably to Social Democracy and Communism." In the following weeks, the Nazi Party received contributions from seventeen different business groups, with the largest coming from IG Farben and Deutsche Bank. Many of these businesses continued to support Hitler even during the war and even profited from persecution of the Jews. The most infamous being firms like Krupp, IG Farben, and some large automobile manufacturers. Historian Adam Tooze writes that the leaders of German business were therefore "willing partners in the destruction of political pluralism in Germany." In exchange, owners and managers of German businesses were granted unprecedented powers to control their workforce, collective bargaining was abolished and wages were frozen at a relatively low level. Business profits also rose very rapidly, as did corporate investment.

The Nazis granted millions of marks in credits to private businesses. Many businessmen had friendly relations to the Nazis, most notably with Heinrich Himmler and his Freundeskreis der Wirtschaft. Hitler's administration decreed an October 1937 policy that "dissolved all corporations with a capital under $40,000 and forbade the establishment of new ones with a capital less than $200,000," which swiftly effected the collapse of one-fifth of all small corporations. On July 15, 1933 a law was enacted that imposed compulsory membership in cartels, while by 1934 the Third Reich had mandated a reorganization of all companies and trade associations and formed an alliance with the Nazi regime. Nonetheless, the Nazi regime was able to close most of Germany's stock exchanges, reducing them "from twenty-one to nine in 1935," and "limited the distribution of dividends to 6 percent." By 1936 Germany decreed laws to completely block foreign stock trades by citizens. These moves showed signs of Antisemitism and a move toward a war economy, with the belief that the stock market was being operated by Jews.

The rhetoric of the Nazi regime stated that German private companies would be protected and privileged as long as they supported the economic goals of the government—mainly by participating in government contracts for military production—but that they could face severe penalties if they went against the national interest. However, such threats were rarely carried out in practice, and historians Christoph Buccheim and Jonas Scherner state that "companies normally could refuse to engage in an investment project designed by the state without any consequences." Private firms refused government contracts and directions on many occasions. In 1937, de Wendel, a coal mining enterprise, refused to build a hydrogenation plant. In 1939, IG Farben denied a government request to increase its production of rayon and refused to invest in a synthetic rubber factory despite this being an important project for the regime. Froriep GmbH, a company producing machines for the armaments industry, successfully demanded cheap credit from the Nazi government under a threat of cutting back investment if its demand was not met. The regime generally used monetary incentives, such as guaranteed profits, to persuade businesses to support its goals, and freedom of contract was generally respected even in projects important for the war. According to Buccheim and Scherner, the reason why businesses sometimes refused these incentives was out of long-term profitability considerations. The government usually tried to persuade them to join military projects, but firms were worried about overcapacity in case the armaments boom would end. They did not want to commit themselves too much to war-related production for the future.

Other historians dispute the Buccheim and Scherner thesis that the general absence of state coercion means there was no real threat of it. They believe that many industrialists feared direct state intervention in private industries if the Nazi government's goals were not fulfilled, and that their choices were affected by this concern. Peter Hayes argues that although the Nazi regime "wished to harness business's energy and expertise" and "generally displayed flexibility in order to obtain them, usually by offering financing options that reduced the risk of producing what the regime desired", the government was nevertheless also willing to resort to direct state intervention as a "Plan B" in some cases, and these cases "left an impression on the corporate world, all the more so as government spokesmen repeatedly referred to them as replicable precedents." Thus, the Nazi state did not resort to "blunt-instrument forms of coercion" because it did not need to, not because it was unwilling to do so. After 1938, "examples had been made, fear inspired, and the lessons internalized, on both sides of the business-state divide." Hayes describes Nazi economic policies as a "'carrot-and-stick' or 'Skinner Box' economy" in which corporate decisions "were increasingly channeled in directions the regime desired" through a combination of "government funding and state-guaranteed profit margins" on the one hand, and a series of regulations, penalties, "the possibility of government compulsion, and the danger that refusal to cooperate could open opportunities to competitors," on the other hand. As such, he argues that "the Third Reich both bridled and spurred the profit motive." Hayes concludes that "Nazi economic policies structured opportunities and thus corporate executives' choices. Did businessmen retain free will? Of course, they did. Was their autonomy intact? I think not."

Social policies

The Nazis were hostile to the idea of social welfare in principle, upholding instead the Social Darwinist concept that the weak and feeble should perish. They condemned the welfare system of the Weimar Republic as well as private charity, accusing them of supporting people regarded as racially inferior and weak, who should have been weeded out in the process of natural selection. Nevertheless, faced with the mass unemployment and poverty of the Great Depression, the Nazis found it necessary to set up charitable institutions to help those they deemed to be racially-pure Germans in order to maintain popular support, while arguing that this represented "racial self-help" and not indiscriminate charity or universal social welfare. Thus, Nazi programs such as the Winter Relief of the German People and the broader National Socialist People's Welfare (NSV) were organized as quasi-private institutions, officially relying on private donations from Germans to help others of their race—although in practice those who refused to donate could face severe consequences. Unlike the social welfare institutions of the Weimar Republic and the Christian charities, the NSV distributed assistance on explicitly racial grounds. It provided support only to those who were "racially sound, capable of and willing to work, politically reliable, and willing and able to reproduce." Non-Aryans were excluded, as well as the "work-shy", "asocials" and the "hereditarily ill." Successful efforts were made to get middle-class women involved in social work assisting large families, and the Winter Relief campaigns acted as a ritual to generate public sympathy. Meanwhile, in addition to being excluded from receiving aid under these programs, the physically disabled and homeless were actively persecuted, being labeled "life unworthy of life" or "useless eaters."

The Nazis banned all trade unions that existed before their rise to power, and replaced them with the German Labour Front (DAF), controlled by the Nazi Party. They also outlawed strikes and lockouts. The stated goal of the German Labour Front was not to protect workers, but to increase output, and it brought in employers as well as workers. Journalist and historian William L. Shirer wrote that it was "a vast propaganda organization ... a gigantic fraud." Meanwhile, the Chamber of Economics (whose president was appointed by the Reich minister of economics) absorbed all existing chambers of commerce. By 1934 these two groups merged somewhat when the Chamber of Economics also became the economics department of the DAF. To aid this, a board of trustees run by representatives of the Nazi Party, the DAF and the Chamber of Economics was set up to centralize their economic activity.

When it came to retail and small business, in order to coordinate workers and small businessmen, shop councils and the so-called Courts of Honour were set up to monitor retail units. Unlike Italian Fascism, Nazism perceived workers and employers in each enterprise as families; each with different roles. This was shown in their tax structure. The Nazis allowed industries to deduct from their taxable income all sums used to purchase new equipment. Rich families employing a maid were allowed to count the maid as a dependent child and reap the tax benefit.

Real wages in Germany dropped by roughly 25% between 1933 and 1938. Along with the abolition of the right to strike, workers were also in large part rendered unable to quit their jobs. Labor books were introduced in 1935, and the consent of the previous employer was required in order to be hired for another job.

Foreign trade relations

20 Reichsmark banknote

In the 1930s, world prices for raw materials (which constituted the bulk of German imports) were on the rise. At the same time, world prices for manufactured goods (Germany's chief exports) were falling. The result was that Germany found it increasingly difficult to maintain a balance of payments. A large trade deficit seemed almost inevitable. But Hitler found this prospect unacceptable. Germany began to move away from partially free trade in the direction of economic self-sufficiency. Hitler was aware of the fact that Germany lacked reserves of raw materials, and full autarky was therefore impossible. Thus he chose a different approach. The Nazi government tried to limit the number of its trade partners, and, when possible, only trade with countries within the German sphere of influence. A number of bilateral trade agreements were signed between Germany and other European Countries (mostly countries located in Southern and South-Eastern Europe) during the 1930s. The German government strongly encouraged trade with these countries but strongly discouraged trade with any others.

By the late 1930s, the aims of German trade policy were to use economic and political power to make the countries of Southern Europe and the Balkans dependent on Germany. The German economy would draw its raw materials from that region, and the countries in question would receive German manufactured goods in exchange. Germany would also leverage productive trade relationships with Spain, Switzerland and Sweden in areas ranging from iron ore imports and clearing and payment services. Throughout the 1930s, German businesses were also encouraged to form cartels, monopolies and oligopolies, whose interests were then protected by the state.

Preparations for war

In 1936, after years of limitations imposed by the Versailles Treaty, military spending in Germany rose to 10% of GNP, higher than any other European country at the time, and, from 1936 onward, even higher than civilian investments. Hitler faced a choice between conflicting recommendations. On one side a "free market" technocratic faction within the government, centered around Reichsbank President Hjalmar Schacht, Minister of Economics Walther Funk and Price Commissioner Dr. Carl Friedrich Goerdeler calling for decreased military spending, free trade, and a moderation in state intervention in the economy. This faction was supported by some of Germany's leading business executives, most notably Hermann Duecher of AEG, Robert Bosch of Robert Bosch GmbH, and Albert Voegeler of Vereinigte Stahlwerke. On the other side the more politicized faction favored autarkic policies and sustained military spending. Hitler hesitated before siding with the latter, which was much in line with his fundamental ideological tenets: social darwinism and Lebensraum's aggressive policies. So in August 1936, Hitler issued his "Memorandum" requesting from Hermann Göring a series of Year's Plans (the term "Four-Year Plan" was coined only later, in September) in order to mobilize the entire economy, within the next four years, and make it ready for war: maximizing autarchic policies, even at a cost for the German people, and having the armed forces fully operational and ready at the end of the four years period.

The year 1936 also represented a turning point for German trade policy. In September, Hjalmar Schacht was replaced by Hermann Göring, who was given the task to make Germany self-sufficient and able to wage war within four years. Measures enacted under Göring included slashing imports, instituting wage and price controls (with violations punishable by internment in a concentration camp), and restricting dividends to six percent on book capital. New strategic goals were introduced for the purpose of making Germany ready for war, including the construction of synthetic rubber plants, more steel plants, and automatic textile factories.

Richard Overy has argued for the importance of the August 1936 Memorandum by stressing that it was written personally by Hitler, who hardly ever wrote anything down. The "Four-Year Plan Memorandum" predicated an imminent all-out, apocalyptic struggle between "Judeo-Bolshevism" and German National Socialism, which necessitated a total effort at rearmament regardless of the economic costs.

In the memo, Hitler wrote:

Since the outbreak of the French Revolution, the world has been moving with ever increasing speed toward a new conflict, the most extreme solution of which is called Bolshevism, whose essence and aim, however, are solely the elimination of those strata of mankind which have hitherto provided the leadership and their replacement by worldwide Jewry. No state will be able to withdraw or even remain at a distance from this historical conflict...It is not the aim of this memorandum to prophesy the time when the untenable situation in Europe will become an open crisis. I only want, in these lines, to set down my conviction that this crisis cannot and will not fail to arrive and that it is Germany's duty to secure her own existence by every means in face of this catastrophe, and to protect herself against it, and that from this compulsion there arises a series of conclusions relating to the most important tasks that our people have ever been set. For a victory of Bolshevism over Germany would not lead to a Versailles treaty, but to the final destruction, indeed the annihilation of the German people...I consider it necessary for the Reichstag to pass the following two laws: 1) A law providing the death penalty for economic sabotage and 2) A law making the whole of Jewry liable for all damage inflicted by individual specimens of this community of criminals upon the German economy, and thus upon the German people.

Hitler called for Germany to have the world's "first army" in terms of fighting power within the next four years and that "the extent of the military development of our resources cannot be too large, nor its pace too swift" [italics in the original] and the role of the economy was simply to support "Germany's self-assertion and the extension of her Lebensraum". Hitler went on to write that given the magnitude of the coming struggle that the concerns expressed by members of the "free market" faction like Schacht and Goerdeler that the current level of military spending was bankrupting Germany were irrelevant. Hitler wrote that: "However well balanced the general pattern of a nation's life ought to be, there must at particular times be certain disturbances of the balance at the expense of other less vital tasks. If we do not succeed in bringing the German army as rapidly as possible to the rank of premier army in the world ... then Germany will be lost!" and "The nation does not live for the economy, for economic leaders, or for economic or financial theories; on the contrary, it is finance and the economy, economic leaders and theories, which all owe unqualified service in this struggle for the self-assertion of our nation".

Germany had already been rapidly rearming and militarizing before 1936. However, it was in his memorandum of 1936 that Hitler made it clear he expected war to be imminent. He argued that the German economy "must be fit for war within four years." Autarky was to be pursued more aggressively, and the German people would have to begin making sacrifices in their consumption habits in order to enable food supplies and raw materials to be diverted toward military uses. Despite Nazi propaganda frequently depicting German families as well-dressed and driving new Volkswagen cars, consumption stagnated in the pre-war economy, with few people being able to afford cars. Speaking to a meeting of his main economic advisers in 1937, Hitler insisted that Germany's population had grown to the point where the nation would soon become unable to feed itself, so war for the conquest of Lebensraum in Eastern Europe was necessary as soon as possible. Therefore, if the rearmament drive caused economic problems, the response would have to entail pushing even harder in order to be ready for war faster, rather than scaling back military spending. Seeing that Hitler had taken this stance, Schacht resigned as Minister of Economics in November 1937, and the management of the economy effectively passed to Hermann Göring.

In July 1937, the Reichswerke Hermann Göring was established as a new industrial conglomerate to extract and process domestic iron ores from Salzgitter, as the first step in a general effort to increase German steel production in preparation for war. It produced steel from low grade iron at rates unprofitable to other steel companies. At first, the Reichswerke began as one of the smaller German iron and steel corporations, but it was able to expand rapidly after the German annexation of Austria in 1938, by acquiring large sections of Austrian heavy industry ranging from raw material production, to armaments manufacture, to sales and distribution. A number of the Austrian firms acquired by the Reichswerke had owned stock in smaller foreign businesses as well, so the Reichswerke became the owner or co-owner of various coal, iron, and steel companies across Central Europe even before the outbreak of war. In spite of this, production of iron and steel continued to fall short of the demands of the growing military buildup, so "it became people's patriotic duty to surrender any old or unused metal objects to the authorities", and scrap metal was also collected from factories, churches, and cemeteries. The German occupation of Czechoslovakia in 1938-39 enabled the Reichswerke to undergo another major expansion immediately prior to the war, by acquiring shares in Czech coal mines, armaments firms, and iron and steel manufacturers. Initially these were not necessarily majority shares, as French and British shareholders also held significant stock in Czech companies, and the Reichswerke had to negotiate with them until war was declared. Later, during the war, the Reichswerke would expand by incorporating over 500 companies in key German industries and much of the heavy industry of occupied nations, including between 50 and 60 per cent of Czech heavy industries and slightly less in Austria. By the end of 1941, the Reichswerke had become the largest company in Europe, after absorbing most of the industry captured by Germany from the Soviet Union.

War: 1939–1945

Cherkashchyna Ukrainians being deported to Germany to serve as slave labor (OST-Arbeiter), 1942

Early conditions

The beginning of the war resulted in a British blockade which seriously restricted German access to world markets. Petroleum, sugar, coffee, chocolate and cotton were all extremely scarce. Germany used coal gasification to replace petroleum imports to a limited extent, and relied on Romanian oilfields at Ploiești. Germany was dependent on Sweden for the majority of their iron ore production, and relied on Spain and Portugal to provide tungsten. Switzerland continued to trade with Germany, and was very useful as a neutral country friendly to Germany. Until the declaration of war on the Soviet Union, the Third Reich received large supplies of grain and raw materials from the USSR, which they paid for with industrial machinery, weapons, and even German designs for a battleship. In the spring of 1940, the Soviet Union asked for two chemical plants as compensation for raw materials. The German government declined, at the insistence of the military.

Rationing was introduced for German consumers in 1939. However, while Britain immediately put their economy on a war footing as soon as the conflict began, Germany resisted equivalent measures until later in the war. For instance, the Nazis were reluctant to increase taxes on individual German citizens to pay for the war, so the top personal income tax rate for an income of 10,000 RM in 1941 was 13.7% in Germany, as opposed to 23.7% in Great Britain. The German government instead funded much of its military effort through plunder, especially plundering the wealth of Jewish citizens and the like, both at home and in the conquered territories.

Conquered territories

Rubber production plant at the Monowitz concentration camp (Auschwitz III)

During the war, as Germany acquired control of new territories (by direct annexation, by military administration, or by installing puppet governments in defeated countries), these new territories were forced by the Nazi administration to sell raw materials and agricultural products to German buyers at extremely low prices. Hitler's policy of lebensraum strongly emphasized the conquest of new lands in the East, and the exploitation of these lands to provide cheap goods to Germany. In practice, however, the intensity of the fighting on the Eastern Front and the Soviet scorched-earth policy meant that the Germans found little they could use in the Soviet Union, and, on the other hand, a large quantity of goods flowed into Germany from conquered lands in Western Europe. For example, two-thirds of all French trains in 1941 were used to carry goods to Germany. Norway lost 20% of its national income in 1940 and 40% in 1943.

Fiscal policy also emphasized the exploitation of conquered countries, from which capital was to be gathered for German investments. German-run banks, such as the Bank of Issue in Poland (Bank Emisyjny w Polsce), were established to manage local economies.

The destruction caused by the war, however, meant that the conquered territories never operated as productively as Germany had hoped. Agricultural supply-chains collapsed, partly due to wartime destruction and partly due to the British blockade that prevented the import of fertilizer and other raw materials from outside of Europe. The grain harvest in France in 1940 was less than half what it had been in 1938. Grain yields also fell (compared to their pre-war levels) in Germany itself, as well as in Hungary and in the occupied Netherlands and Yugoslavia. German grain imports from Yugoslavia and Hungary fell by almost 3 million tons, and this could only be partially offset by increased deliveries from Romania. Coal and oil were also in short supply, again because Germany could not access sources outside of Europe. Germany's oil supplies, crucial for the war effort, depended largely on annual imports of 1.5 million tons of oil, mainly from Romania. Although Germany seized the oil supplies/reserves of conquered states—for example reducing France to a mere 8 percent of its pre-war oil consumption – this was still not enough for the needs of the war. Acute fuel-shortages forced the German military to cut back on training for its drivers and pilots, because training would waste fuel. The Soviets and the Americans had accurate reports of Germany's oil supplies, but refused to believe that the Nazi government would take the risk of starting a war with so little fuel security, so they assumed that Germany must have had vast amounts of well-hidden supplies that they were not able to detect. Germany also had a problem with coal, although in this case the issue was not a lack of quantity, but an inability to extract it and transport it where it was needed fast enough. Railways had been badly damaged by the war, and coal miners in occupied territories drastically reduced their productivity compared to pre-war levels. This was, in part, deliberate sabotage on the part of the miners, who wished to harm the German war-effort. But it was also in part due to lack of adequate nutrition for those miners, as food from their countries was redirected to Germany.

In 1942, after the death of Armaments Minister Fritz Todt, Hitler appointed Albert Speer as his replacement. Historians have long contended that the growing burdens of the war saw Germany move to a full war-economy under the efficient leadership of Speer. However, historian Richard Overy contends this is a myth based on the flimsy conclusions of the Strategic Bombing Survey, which relied on the views of one German official from the German Statistical Office, Rolf Wagenführ. Wagenführ was not senior enough to be aware of decision-making at higher levels. Overy shows that the military and Nazi leadership were particular about preparing the German economy for total war, as they felt that Germany had lost World War I on the Home front.

Forced labor

Even before the war, Nazi Germany maintained a supply of slave labor. "Undesirables" (German: unzuverlässige Elemente), such as the homeless, non-whites, homosexuals, and alleged criminals as well as political dissidents, communists, Freemasons, Jews, and anyone else that the regime wanted out of the way were imprisoned in labor camps. Prisoners of war and civilians were brought into Germany from occupied territories after the German invasion of Poland. The necessary labor for the German war economy was provided by the new camp system, serving as one of the key instruments of terror. Historians estimate that some 5 million Polish citizens (including Polish Jews) went through them.

The badge imposed on Polish forced workers

A network of slave-labor camps—457 complexes with dozens of subsidiary camps, scattered over a broad area of German-occupied Poland—exploited to the fullest the labor of their prisoners, in many cases working inmates to their death. At the Gross-Rosen concentration camp (to which Polish nationals were brought in from the annexed part of Poland) the number of subcamps was 97. Under Auschwitz, Birkenau, and Auschwitz III (Monowitz) with thousands of prisoners each, the number of satellite camps was 48. Stutthof concentration camp had 40 subcamps officially and as many as 105 subcamps in operation, some as far as Elbląg, Bydgoszcz and Toruń, 200 kilometres (120 mi) from the main camp. The Deutsche Reichsbahn acquired new infrastructure in Poland worth in excess of 8,278,600,000 zł., including some of the largest locomotive factories in Europe, the H. Cegielski – Poznań renamed DWM, and Fablok in Chrzanów renamed Oberschlesische Lokomotivwerke Krenau as well as the locomotive parts factory Babcock-Zieleniewski in Sosnowiec renamed Ferrum AG later tasked with making parts to V-1 and V-2 rockets also. Under the new management, formerly Polish companies began producing German engines BR44, BR50 and BR86 as early as 1940 with the use of slave labor.

Hundreds of thousands of people in occupied territories were used as slave labor by leading German corporations including Thyssen, Krupp, IG Farben, Bosch, Blaupunkt, Daimler-Benz, Demag, Henschel, Junkers, Messerschmitt, Philips, Siemens, Walther, and Volkswagen, on top of Nazi German startups which ballooned during this period, and all German subsidiaries of foreign firms including Fordwerke (Ford Motor Company) and Adam Opel AG (a subsidiary of General Motors). By 1944, slave labor made up one-quarter of Germany's entire work force, and the majority of German factories had a contingent of prisoners. In rural areas the shortage of agricultural labor was filled by forced laborers from the occupied territories of Poland and the Soviet Union. The children of these workers were unwanted in Germany, and usually murdered inside special centers known as Ausländerkinder-Pflegestätte.

Military production

The proportion of military spending in the German economy began growing rapidly after 1942, as the Nazi government was forced to dedicate more of the country's economic resources to fight a losing war. Civilian factories were converted to military use and placed under military administration. From mid 1943 on, Germany switched to a full war economy overseen by Albert Speer. By late 1944, almost the entire German economy was dedicated to military production. The result was a dramatic rise in military production, with an increase by 2 to 3 times of vital goods like tanks and aircraft, despite the intensifying Allied air campaign and the loss of territory and factories. Restaurants and other services were closed to focus the German economy on military needs. With the exception of ammunition for the army, the increase in production was insufficient to match the Allies in any category of production. Some production was moved underground in an attempt to put it out of reach of Allied bombers.

From late 1944 on, Allied bombings were destroying German factories and cities at a rapid pace, leading to the final collapse of the German war economy in 1945 (Stunde Null). Food became drastically scarce. Synthetic fuel production dropped by 86% in eight months, explosive output was reduced by 42% and the loss of tank output was 35%. The Allied bombing campaign also tied up valuable manpower, with Albert Speer (Germany's Minister of Armaments) estimating that in the summer of 1944 between 200,000 and 300,000 men were permanently employed in repairing oil installations and placing oil production underground.

Historiography

A major historiographical debate about the relationship between the German prewar economy and foreign policy decision-making was prompted in the late 1980s, when historian Timothy Mason claimed that an economic crisis had caused a "flight into war" in 1939. Mason argued that the German working-class was opposed to the Nazi dictatorship in the over-heated German economy of the late 1930s.[145] However, Mason's thesis was opposed by historian Richard Overy who wrote that Germany's economic problems could not explain aggression against Poland and that the reasons for the outbreak of war were due to the ideological choices made by the Nazi leadership. For Overy, the problem with Mason's thesis was that it rested on the assumptions not shown by records. Overy argued that there was a difference between economic pressures induced by the problems of the Four Year Plan, and economic motives to seize foreign industry, materials and reserves of neighboring states. Meanwhile, Adam Tooze argued that from 1939 onward, in spite of the military successes in the West, the German economy became dependent on vital imports from the East. Tooze saw this as a reason for Hitler to attack the Soviet Union, because "[t]he Third Reich had no intention of slipping into that kind of humbling dependence that Britain now occupied in relation to the United States, mortgaging its assets and selling its secrets, simply to sustain its war effort". Up to Operation Barbarossa the German economy could not "do without Soviet deliveries of oil, grain, and alloy metals." The Four-Year Plan was discussed in the controversial Hossbach Memorandum, which provides the "minutes" from one of Hitler's briefings. The Four-Year Plan technically expired in 1940.

Politics of Europe

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