The Nazi War Economy

The Expansion of the Nazi Economy

Hitler was determined to avoid the troubles Germany faced in WW1.
Wanted to fight the coming war with an economy thoroughly prepared for a major conflict.
December 1939 - series of war decrees outlining every possible aspect of war production. (Example: submarines and air crafts)
These plans suggest the Nazis went well beyond the demands of Blitzkreig and a limited war.
German military expenditure doubled between 1939 and 1941.
However, Britain trebled expenditure in the same period.
Food rationing introduced from the start of the war.
German labour force rapidly mobilised for war.
By Summer 1941, 55% of workforce were involved in war-related projects.
First two years of war saw a 22% decline civilian consumption.

1 of 6

Despite the intent of wholesale mobilisation, the actual results of armaments production remained low.
Examples: air force - 1939 8290 air craft, 1941 10,780 air craft.
In Britain, over the same period the number of aircraft had trebled to 20,100.
Despite the Nazi image of German order and purposefulness, actual mobilisation was inefficient and poorly coordinated.
Perhaps because of the premature outbreak of war? Many major projects weren't due to be completed until 1942-3.
Competing agencies made it impossible to overcome the issues the economy faced.
Minister of Armaments - Fritz Todt
Armaments competed with ministries of economics, finance and labour.
Various groups responsible for armaments: the Office of the Four-Year Plan; the ** bodies and the different branches of the Wehrmacht.
Quality of quantity.

2 of 6

Feb 1942 - Total War
Speer's first six months in power: 97% increase in ammunition production; 25% increase in tank production; 59% increase in total arms production.
1944 German war production peaked and there had been more than a three-fold increase since early 1942.

3 of 6

Germany had the capacity to produce even more than what it did.
Speer could not always counter the power of the party Gauleiters at local level.
The ** remained a law unto themselves.
Territories occupied by the Third Reich were well and truly plundered but not exploited with real economic efficiency.

4 of 6

1940-1942 the effects of Allied bombing was limited.
Allied aircraft only had the technology to launch nuisance raids.
1942-1945 the Allies deliberately used blanket bombing.
Production figures show that the strategy failed to break the German war economy.
However, it is likely that this blanket bombing hindered the increase in arms production.
Germany was also forced to divert significant resources towards the construction of anti-aircraft installations and underground industrial sites.

5 of 6

From 1943 Speer could not reverse the detrimental effects of Anglo-American bombing.
Germany failed to reach a Total War economy.
Arms production peaked in August 1944, considerably lower than its full potential.
Nazi economy proved incapable of rising to the demands of Total War.

6 of 6