Domestic policies of the Third Reich, 1933-39

HIST2134 The Third Reich through Documents, 1933-1945

Lecture 4: Domestic policies of the Third Reich, 1933-39 19 February 2013

Consolidation/coordination of power in Federal States, 1933: • Sandwiched: SA terror + NS pressure • Taken over: Police forces partly by SS

• Dismissed: democratic states’ governments • Replaced: Appointment of special commissioners (= Reichsstatthalter = NSDAP district Gau leaders)

Dualism of State and Party → Gau leaders (NS district leaders) in dominant position in federal states → Permanent conflicts: States’ administrations ≠ regional & local NSDAP branches → Growing rivalry in ‘even working better for Hitler’ ► Increasing dualism of state + NSDAP = First Step into Polycracy

Polycratic system (1) Rivalling Power groups: • • • • • • •

NSDAP: ‘The Party’ (Die Partei) SA (Sturmabteilung): Storm Detachment SS (Schutzstaffel): Defence Unit/Elite Guard SD (Sicherheitsdienst): Security Service Army (Wehrmacht) Big Business Higher levels of government offices

Polycratic system (2) Gradual power shift of rivalling groups:

• SA ☻→ SS ☺ + Army ☺ (1934) • Bureaucracy ☻→ NS Special Administrations ☺ • Judiciary + Police ☻→ SS ☺ • Big Business: peace years ☺ → war ☻

Polycratic system (3) • Hitler not mediator between rivalling power groups • H. as divider by issuing often impulsive, uncontrollable, separate dictatorial orders (Führerbefehle) → ‘Social Darwinism’: “Survival of the fittest” → NS state constitution not achieved until 1945

= “Unity of Party and State”: NS propaganda = Improvisation, conflict, bureaucratic chaos: NS reality

Polycracy: Reasons Integrated school / approach: e. g.: Ian Kershaw (Hitler, 1998): • H’s chaotic style of government → bureaucratic chaos • H’s dialectic interplay with structures = H’s mainly responsible for creating ‘political climate’ of NS dynamic-destructive activities

NS ‘Economic Miracle’ (1) •

World-wide economic recovery

‘Policy of deficit financing’ (J.M. Keynes): 1) 2) 3) 4)

Capital investments into key sectors Tax relieves for key sectors Labour programs (Labour Service = RAD) Loans for female staff to quit their jobs

= domestic market oriented strategy

NS ‘Economic Miracle’ (2) ‘Policy of autarky’ (H. Schacht’s New Plan 1934:

• 1) Promotion of German exports • 2) Quotas on foreign exchange trade to reduce imports • 3) Strictly bilateral trade + payments = foreign markets oriented strategy

NS ‘Economic Miracle’ (3) • Short-term economic policy to resolve the economic crisis ? OR Long-term economic policy to support rearmament ? ► Interdependent process with emphasis on rearmament to prepare for war

NS ‘Economic Miracle’ (4) • Drastically drop of unemployment figures • Strong rise of heavy + light industry • Less rise of consumer good industry A miracle? → World-wide economic recovery → Labour Service + compulsory military service → Rearmament as stimulus

Four-Year Plan (1) • Centralized control of German economy • Aimed to make army + economy ready for war • 4 priorities: 1) Increase in agricultural production 2) Retraining of labor force in key sectors of industry 3) Import + export regulation 4) Self-sufficiency in raw materials

Four-Year Plan (2) • Hermann Göring as ‘economic dictator’ • New NS bureaucracy to control economy • Founding of NS holding enterprises (‘Reichswerke Hermann Göring’)

• Limited freedom of private enterprises

= Centrally regulated market economy

Four-Year Plan: Results • Difficult balance of consumer good + armament production, 1936-42 • Autarky partly achieved in 1939

• Only short ‘Blitz Wars’ possible, 1939/40 • Long war only possible by expansion + occupation + plundering, since 1941