The Third Reich's Macroeconomic Policies: Enablers Of Genocide

Major Adam W. Grein II

• Publisher: Lucknow Books
• Year: 2014
• eBook ISBN: 9781782897996
• Topic: History
• Subtopic: European History
• Index: History

The purpose of this study is to identify relationships between Nazi Macroeconomic policy and its ability to enable genocide. This study uses primary source documentation from newspapers, historical documents and published works to examine Nazi ideology as it relates to economics and macroeconomic policy. Accompanying this research is an analysis of steps the United States could have taken to stop or deter Nazi economic policy using the Mass Atrocities Prevention and Response Handbook's economic planning guidance.

CHAPTER 1 — INTRODUCTION

“The Jews domination in the state seems so assured that now not only can he call himself a Jew again, but he ruthlessly admits his ultimate national and political designs. A section of his race openly owns itself to be a foreign people, yet even here they lie. For while the Zionists try to make the rest of the world believe that the national consciousness of the Jew finds its satisfaction in the creation of a Palestinian state, the Jews again slyly dupe the dumb Goyim. It doesn’t even enter their heads to build up a Jewish state in Palestine for the purpose of living there; all they want is a central organization for their international world swindle, endowed with its own sovereign rights and removed from the intervention of other states: a haven for convicted scoundrels and a university for budding crooks.”—Adolph Hitler, Mein Kampf

Definitions

Macroeconomics: Is the study of economics in terms of whole systems especially with reference to general levels of output and income and to the interrelations among sectors of the economy.{1}

Macroeconomic Policy: Government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth. Common macroeconomic policies are fiscal and monetary.{2}

Background

By 1934, the German economy, although not at full strength, was rebounding from the Great Depression and the credit crisis of 1931. There were additional signs that consumerism was picking-up since sales tax receipts were showing gains and more Germans were returning to the workforce than in years past.{3} The general mood was that Nazi macroeconomic policies were effective and the work of Nazi leader, Adolf Hitler, and his Minister of Finance, Hjalmar Schacht, were bringing the change Germans so desperately wanted. However, there was still apprehension in the air and Germans remained doubtful that total economic recovery would soon be realized.

Hitler had a vision of what Germany would become if left to those he saw as threats to the state. Fueled by hate and his desire for revenge over the Versailles Treaty, Hitler began his radical movement toward racial purity and macroeconomic reforms. Although the Nazi party campaigned on a series of macroeconomic issues and argued for the advancement of German farmers and laborers, Hitler knew he had to provide people with radically new and innovative reforms in order to mobilize the nation to do his bidding.{4}

The reforms would speak to the German people and capture their attention in a way that had never been seen before. Under the auspices of National Socialism, Hitler would elevate the economic status of the working class and provide them with opportunities once only reserved for the upper-middle class and social elite of German society. With programs such as Strength Through Joy, German workers received unprecedented benefits and organizational change to the work place.{5} New laws went into effect to counterbalance the economic hardships felt by the poor and working. Change was rapid and winning the hearts and minds of the German people.

Not all change was positive for all Germans. For German-Jews, National Socialism was the end to Jewish assimilation in German society. Most Jews living in Germany saw themselves as Germans. Many of them had intermarried with non-Jewish Germans, had served in the military, and were civil service members. With National Socialism, they were systematically removed from positions of responsibility within the government and public life altogether.{6} Regardless of German-Jews’ contributions to German society, they were nevertheless believed to be the forces that would bring about economic destruction and communist domination. Therefore, according to Nazi ideology they must be removed at all cost.

Research Question and Methodology

The expressed purpose of this research is to provide military and civilian leaders with an understanding of how macroeconomic policies were leveraged against German and European Jewry. This thesis will explore the primary question: Can macroeconomic policies enable genocide? Two subsequent questions will also be answered: Did the Nazis effect the social change needed in order to carry out their policies for genocide?; What actions could have been taken to prevent the Nazis from achieving their macroeconomic goals? The end-state of this thesis is to develop a better understanding of how Nazi macroeconomic policies stimulated the German people to perpetrate the Holocaust. This thesis will also determine if we can apply Mass Atrocities Prevention and Response Operation economic planning guidance to understand what actions could have been taken to prevent the mass murder of European Jewry.

The primary methodology used for answering these questions is the use of primary source documents such as Nazi economic policies, party ideology and propaganda used to exercise their will over the nation. Second, this study will use the applicable work of scholars from other of fields, such as economics, history and psychology that directly relate to World War II and genocide specifically.

Thesis

State economic policy may be a fundamental driver, leading to genocide and mass atrocities. This study will use a case study to examine macroeconomic events that eventually led a nation's incitement to commit genocide. The study will be based on the Mass Atrocity Prevention and Response Operations (MAPRO) economic planning guidance to analyze the Holocaust as a case study of an extreme example; how the Nazi party's macroeconomic policies gave them the ability to convince the German people to support genocide.

In this case of genocide, there appears to be a single key and over-arching enabler leading toward genocide - macroeconomics. Also, Nazi macroeconomic policy was a potential enabler used to manipulate the German people and advance Hitler’s goals of achieving a racially pure and self-sufficient state. This thesis will study how the Nazis infused ideology and racial intolerance into macroeconomic plans in order to construct a legitimate framework to limit and ultimately remove the Jewish population from their economy and society. This research will refer to Gregory Stanton’s “Eight Stages of Genocide”{7} when providing a conceptual framework for understanding how the Nazis identified and took action against German and European Jewry.

The thesis assumption is that one essential enabler for genocide exists-macroeconomic policy. This topic is of great importance to military leaders and civilian policy makers. As the economic disparity between the “haves” and “have nots” becomes deeper and harder to bridge, there is the propensity for increased violence. Future battlefields will require knowledgeable military leaders who can identify the macroeconomic indicators that could lead to implementing MAPRO in their area of operations and ensure they have the ability to plan for prevention and response operations.

Purpose and Organization of the Study

This study provides an understanding of how Nazi macroeconomic policy enabled the Holocaust. This study is not intended as a means to address how Jews and other people were exterminated or other policies against these groups that were not economic. Nor will this study address anti-Jewish sentiment in other countries since these questions are outside the focus of this study.

This study is focused on how macroeconomic policies influenced the German people to support the Nazi party’s goals and violence toward the German and European Jewry. Also, this thesis researches how Hitler made it economically viable for German citizens at all levels to adhere to the new direction of the nation. Thus, this study will look at three key components of macroeconomics: Nazi ideology, the policies themselves and propaganda.

This study is focused on how macroeconomic policies influenced the German people to support the Nazi party’s goals and violence toward the German and European Jewry. Also, it researches how Hitler made it economically viable for German citizens at all levels to adhere to the nation’s new direction. Thus, this study will look at three key components of macroeconomics: Nazi ideology, the policies themselves and propaganda.

Chapter 2 will specifically study how the Nazis targeted Jews by using Stanton’s eight stages of genocide and the policies and propaganda that supported it. The chapter will also review how propaganda and other policies were used to gain the German people’s support. Key to this is outlining how these policies affected the lives of German citizens and how these policies enabled the German people to support the war and genocide.

Chapter 3 reviews programs Nazis used to organize and rebuild the nation, as well as a look into the ideology that was fundamental in the creation of these programs. It will specifically look at the Four-Year Plan, Strength Through Joy and Nazi worldview ideology.

Chapter 4 is an analysis of potential MAPRO economic tools the United States (U.S.) government could have utilized to combat Nazi aggression or attack of the Jews. It will highlight what was done and how economic tools could have been used.

Chapter 5 will provide findings and conclusions based on the Anderton Bargaining Model that defines four rational explanations for an authority’s choice of genocide: prevention of loss of power, indivisibility, elimination of a persistent rival, and political bias and the historical context of the thesis.{8} This thesis will not make remarks or recommendations outside the structure of this thesis.

Literature Review

There is extensive literature on mass atrocities and genocide. Most of which is retrospective and provides a base to understand how and when a specific genocide occurred as well as the circumstances surrounding the event. The literature reviewed was a highlight of examples of macroeconomics and genocide and how macroeconomic policy was a fundamental enabler to what ultimately become known as the Holocaust.

One of the key documents reviewed was the “Program of the German Workers Party”{9} or better known as the Party’s 25 points. This document was essential to understanding how the Nazi party viewed economics and it served as the party’s platform for election. Announced in Munich on 24 February 1920, the Nazi party hailed the 25 points as a “program for our time”{10} speaking to the German people on fundamental issues essential to the Germany psyche and social constructs. This document is of particular value to this thesis in that it provides a picture of how the Nazi party intended to pacify the German people by meeting their economic needs. However, leave no doubt, this document also signaled the initial change in mood and thought on hate and aggression toward non-Germans and those were considered citizens of the Reich.

In all, thirteen points specifically dealt with macroeconomics and social welfare. By design, each point was a macroeconomic lead to gain buy-in from the German people by meeting their basic needs from a macro policy level. This and other primary source documents are essential to this research, forming the case study’s structural base.

Ideology and policy aside, the use of propaganda is essential to this thesis. There was no question when it came to Hitler’s or the Nazi party’s ability to motivate the masses. Nazi leadership made effective use of every form of propaganda. From speeches at mass rallies, to the spectacle of torch light parades held to stir the emotions of the German people-propaganda was everywhere. The Nazi party took propaganda even further with the use of print media. If the people could not be there for the speech or the parade, the party took the message to the people. The Nazis capitalized on every form of propaganda to support the party, the war and discriminating and blaming Jews at home and abroad.

A specific example was the speech Joseph Goebbels (Hitler’s propaganda minister) wrote for Hitler entitled “Communism with the Mask Off.”{11} Goebbels noted the following in his personal diary: “A brilliant success. The Fuhrer was genuinely enthused. A storm of applause, my material was deeply moving.”{12} The speech promulgated the Nazi view that Jews and Communists...

Table of contents

• Title page
• TABLE OF CONTENTS
• ABSTRACT
• ACKNOWLEDGMENTS
• ACRONYMS
• CHAPTER 1 - INTRODUCTION
• CHAPTER 2 - CREATING THE ENEMY
• CHAPTER 3 - FROM IDEOLOGY TO WAR
• CHAPTER 4 - ANALYSIS
• CHAPTER 5 - FINDINGS AND CONCLUSION
• REQUEST FROM THE PUBLISHER
• BIBLIOGRAPHY