First of all, Hitler was not only a devil but also an economic czar. Proposal of new monetary policy
While in prison in Bavaria, Hitler pointed out: "The gold standard and currency comparison are the root cause of the disaster for the German people." On January 30, 1933, Hitler was appointed as the leader of Germany. Prime Minister, leaving the profit-saturated domestic market, Wall Street capital began to invest heavily in Germany, hoping to recover the capital they invested in Hitler. As the German Chancellor who lacks the minimum economic strength, he used the money to revitalize the German economy. From 1924 to 1931, the Wall Street Chairman provided 138 billion marks in loans to Germany, but Germany only paid 86 billion marks in war reparations during this period, so Germany actually received a sum of With huge financial support of 52 billion marks from the United States, the entire German military industry was able to develop rapidly. In addition to providing low-interest short-term financing to German industry in the New York commercial paper discount market, financial giants also did not hesitate to ship large amounts of gold reserves directly to Germany. Hitler also implemented financial system reforms, the most critical of which was the withdrawal of currency issuance rights from the German private central bank. After getting rid of the inefficient and high-consumption process of using national debt as collateral to issue currency, Germany's economy rose wildly with the help of Wall Street capital. He said: "A country does not rely on the apparent value of currency to maintain its life, but on real production, and production can make currency gain value. Production is the real preparation of currency. There is no need to have a bank safe full of gold. Meaning.”
Hitler’s new monetary policies include: 1. Refuse to accept foreign loans and base German currency on production instead of gold. 2. Conduct import and export trade by direct barter. 3. End the so-called "foreign exchange freedom", which allows gambling on currency and the transfer of private property from one country to another according to political conditions. 4. When there are manpower and materials that can work, create money instead of borrowing from foreign countries.
Since the main way of making profits in international finance at that time was to make money by lending money to countries in economic difficulties, this policy was to use the export of goods as a means of repaying Germany’s economy, and to support it with the capital of American and British financial tycoons. The products produced by German industry were used to make money from the United States and Britain, and the economic burden of revitalizing the German economy was cleverly passed on to Western countries. The Western countries were helpless because they had powerful military forces built with American and British capital. During the economic crisis, Hitler abolished gold and stock exchange in international trade and only conducted goods transactions, so the impact on the financial market was very small. At that time, the European powers all exclaimed that Germany had not been hit at all, but industrial production had increased
(2) Rebuilding the social security system and implementing social welfare policies
Hitler’s speech skills were It is very commendable that he once promised: "Break the shackles imposed on Germany by the Treaty of Versailles, let everyone have a job, let every household have steak and bread, and let the German nation revitalize!" , and his promise became a reality in the early days of the Third Reich (1933-1938), thus making more people support Hitler.
His social welfare policies are: 1. Vigorously promote the social insurance system to increase and improve the social welfare of the people. 2. Expand the paid leave system for employees. The Nazi's affiliated labor front built a number of sanatoriums and hotels in places such as the resort of Rugen Island, allowing workers to enjoy vacation travel that only the bourgeoisie could enjoy in the past. In 1937 alone, approximately 10 million workers across Germany enjoyed this benefit. 3. Improve workers’ working conditions and working environment through labor beautification activities.
So how can Germany’s severe unemployment rate be saved? In 1933, Germany's unemployment rate was as high as 30%, and by 1938, there was a labor shortage. This was partly due to the rapid economic development, and partly due to some of Hitler's clever policies. For example, Hitler implemented a marriage loan policy in order to allow women to free up their jobs for men: when two people got married and the wife gave up her job, the couple could get a 1,000-mark loan to buy furniture and household items. . This regulation not only led to a large number of vacancies and an increase in marriage rates, but also led to an increase in the birth rate, which in turn strengthened Germany's military power.
Thanks to the efforts of the Nazi authorities, Germany's unemployment rate dropped to 1.3% by 1938, while the unemployment rate in the United States was 1.89% and the United Kingdom's 8.1% during the same period.
(3) Measures used to restore economic development
At that time, Germany was almost in a state of economic stagnation. Hitler declared that he would make the German economic engine run at high speed and continuously as soon as possible. The measures taken are:
1. Active fiscal policy, including increasing taxation, expanding national debt and implementing inflation
From 1932/1933 to 1938/1939, the national tax revenue was from Mark 6.56 billion suddenly increased to 17.7 billion Mark, and the actual tax paid increased by more than 60 billion Mark in six years. From 1932 to September 1939, the German national debt increased from 11.5 billion marks to 37.1 billion marks. The Reichsbank and several of the largest private banks are major holders of government bonds. The small savings of working people were also forced into public debt. The Reichsbank issued a large number of bank bonds using national debt as guarantee. From 1933 to September 1939, the number of bank bonds in circulation increased sharply from 2.6 billion marks to 11 billion marks.
2. Large-scale military procurement and ordering
In 1932, Germany’s military expenditure was 670 million marks, accounting for about one-tenth of the total national expenditure or 10% of the national income that year. 1.5%. During the six-year war preparation period from 1933 to the autumn of 1939, Germany's total war preparation expenditure was more than 40 billion marks, accounting for approximately two-fifths of the total national budget expenditure or 10.6% of national income during the same period. Huge military orders enabled German monopoly capital groups to obtain high profits. Take the arms industry Concern Krupp as an example. From 1932/1933 to 1938/1939, the total value of military orders received by the company from the state soared from 9.3 million marks to 145 million marks, which was an increase of nearly 15 times. During the same period, the company's net profit increased from 6.5 million marks to 122 million marks, which was an increase of nearly 18 times
3. Depriving the Jews of capital
Hitler's extraordinary plan for the Jews, This issue has also attracted the interest of countless scholars in modern and contemporary times. After Hitler and others came to power, they carried out a large number of "anti-Semitic movements" and helped the "Aryan" consortium deprive Jewish property. As a result of this "movement", German Jewish capital totaling approximately 6 to 8 billion marks was all transferred to the hands of the "Aryan" plutocrats and Nazi party leaders through forceful confiscation or forced change of ownership.
4. Forced cartelization
In July 1933, the Hitler government promulgated the so-called "Cartel Ordinance", which stipulated that the Reich Ministry of Economic Affairs had the right to establish new cartels, and all cartels I have the authority to order outside companies to merge. Any outside companies that object to such regulations may be refused recognition by the relevant cartel, thereby depriving them of rights such as access to raw materials and supplies of goods. This effectively declares them economically dead. Under this threat, a large number of small and medium-sized outsiders were forced to merge into monopoly organizations and came under the direct rule of monopoly capital. The number of cartels increased rapidly. From 1930 to 1936, the total number of registered cartels in Germany increased from 2,100 to 2,500.
5. Eliminate small and medium-sized enterprises and expand monopoly organizations
In 1937, Hitler promulgated the "Joint Stock Company Reform Law", which stipulated that all small joint stock companies with a capital of less than 100,000 marks should be and the capital of newly established joint-stock companies must not be less than 500,000 marks. In addition, the Hitler government also forced the closure of a large number of handicraft enterprises and small retail stores
6. The government comprehensively intervened in the national economy and promoted the national economy and military
The Hitler government established a series of militarized economic regulation agencies. In addition, in July 1933, the "German Economic General Council" was established under the Reich Ministry of Economic Affairs, which was directly controlled by the monopoly oligarchs. The General Staff Department of Economic Preparation has great power and is responsible for guiding the formulation of national economic policies and laws. The planned economy enabled Germany's industrial development to exceed that of Britain, France, and the United States. From 1932 to 1938, pig iron production increased from 3.9 million tons to 18.6 million tons, and steel production increased from 5.6 million tons to 23.2 million tons. From 1933 to 1939, German arms production increased 11.5 times. But at the same time, Germany's sectoral economy has experienced imbalances. While arms factories were busy manufacturing weapons, half of the equipment in Germany's textile and shoemaking industries was idle.
In terms of agriculture, the Reich Grain Bureau and its tens of thousands of grassroots agencies were the basic tools for Hitler's government to intervene in agricultural activities. However, all agricultural affairs are subject to state control. During the Hitler administration, German grain production basically stagnated at the level of the early 1930s. From 1937 to 1938, the average annual grain import volume was similar to that of the 1920s, around 4 million tons.
7. On the one hand, strengthen and expand state ownership, on the other hand, transfer state-owned property to the hands of private monopoly capital.
During the Hitler government, the absolute and relative share capital controlled by the German state The amount is increased. From 1932 to 1939, the amount of "state-owned" share capital increased from 2.9 billion marks to 3.6 billion marks, and its proportion in the country's total share capital increased from 13.2% to 17%. In 1939, Germany's state monopoly capital totaled 24.8 billion marks, accounting for one-fifth of the country's total capital. While expanding nationalization, Hitler's government also implemented a policy of re-privatization of state-owned property. During the economic crisis of 1929-1933, in order to save a series of monopoly capital groups, the then German government acquired most of the stocks of major Berlin banks and some stocks of a series of large industrial companies at preferential prices. As these enterprises turned losses into profits, Hitler's government sold huge amounts of state-held stocks to relevant private monopoly capital groups at low prices. As state monopoly capitalism developed in Germany, the integration between monopoly enterprises and the government also strengthened. The functions of business owners and the functions of state bureaucracy have reached a high degree of integration.
8. Expansion of foreign trade
From 1932 to 1938, Germany’s proportion in the import and export trade of Bulgaria, Greece, Hungary, Romania and Yugoslavia increased by three points each It ranges from one to three times. From 1929 to 1938, Germany's foreign investment increased sharply, from US$1.2 billion to US$4 billion. In May 1933, the steel monopolies of Germany, France, Belgium, Luxembourg and other countries jointly established the International Crude Steel Export Association, thus reviving the international steel cartel. In the International Steel Cartel and the International Aluminum Cartel, the German monopoly also owns nearly one-fifth of the export share or shares respectively.
9. Construction of government offices
Hitler’s government spent approximately 5 billion marks on construction of government projects in the first two years. The largest one is the construction of roads, mainly expressways, at 1.61 billion marks, followed by the construction of public buildings and residences (many of which later became military barracks) of about 700 million marks, and the reclamation of wasteland and soil improvement, about 700 million marks. Renovation of rivers, digging canals and erecting bridges amounted to 350 million marks, and repairing and updating railway equipment amounted to about 500 million marks; subsidies and tax exemptions of about 600-700 million marks were issued to private parties participating in public projects. However, in order to promote their own achievements, the Nazis celebrated them as the original achievements of the Führer and said that the highway was invented by the Führer alone. In fact, the plan to build the highway had been drawn up as early as the late 1920s. Its implementation was only hampered by the world economic crisis.
From 1932 to 1937, Germany's gross national product increased by 102% and national income doubled. These real data show that the Nazi authorities did create a miracle of German economic revival in a short period of time.