The Economy-1939-45

In the early years of the war, the Nazis were incredibly successful with the string of victories brought about through blitzkreig.

This also gave the impression that the economy was strong enough to withstand military action.

In December 1939, Hitler issued a series of war decrees outlining programmes for war production. This suggests that the Nazis were thinking beyond blitzkreig and a limited war.

Military expenditure also doubled between 1939 and780 in 1941.

The number of tanks being prepared for invading the USSR were only 3500.

During 1939-41 there were major deficincies in war materials. There was also a problem of supply in 1939.

Germany was unable to replace the aeroplanes lost in the Battle of Britain.

Food rationing had been introduced at the start of the war so the German labour force were mobilised.

However, in summer 1941 55% of the workforce was involved with the war, only increasing to 61% by 1944.

The armaments production was also low. There was an increase in the number of submarines being producing but the number of aircraft only increased fron 8,290 to 10, 780 in 1941

As well as this, the mobilisation of the economy was also hindered by poor planning and co-ordination. There was confusion between short and long term needs. Different agencies also continued to intrepret in their own way. There was politicial infighting between Nazi figures such as the local Gauleiters. Different people competed for control over the munitions.

1941-Rationalisation Decree. In this the aim was to eliminate waste of labour and materials.

1942-45 saw the country turning to total war.

Albert Speer

In February 1942 Albert Speer was apointing to Minister of Armaments.

He used his position to implement his programme of industrial self-responsibility to provide mass production.

Controls on the businesses were relaxed to make them more efficient.

Speer can be considered a true 'technocrat' because he co-ordinated and rationalised the process of war production and was able to exploit Germany's resources and labour force.

He employed women

Used people in concentration camps for work

Stopped skilled workers from being conscripted.

After the surrender at Stalingrad, Goebbels invited the crowd to support total war. However the economy was ready for this due to Speer's work.

In his 6 months of power, the ammunition production rose by 97%

Tank production rise by 25% and total arms production rose by 59%.

Production could have achieved the output close to the USSR or USA.

However, he was not able to counter the Gauleiter and the SS. Speer also did not fully exploit the resources of the conquered lands.

He could not reverse the effects that the Allied bombing had on production.

However by 1944, a quarter of the labour force was foreign.