Economic and Social Factors Behind the Third Reich's Rise

Nazi Economic Policy and the Working Class

Hitler's Nazi economic plan was, until the loss of the war intervened, such a success that foreign economists went so far as to call it a miracle. The Nazi economic framework, which emphasized total employment, total commitment, and the supremacy of big business, relied on a series of radical measures to propel the resurgent nation into a state of military readiness. Several factors contributed to Nazi Germany's economic success, and ultimately to the potential endurance of the Third Reich.

An essential building block of the Nazi state was a satisfied, even energized, working class. That this had to be obtained despite a reduction in luxuries and civil liberties made it a challenging task.

The first step in satisfying the working class was the elimination of one of the worst demons of the Weimar Republic: unemployment. The Third Reich implemented stimulus programs that created jobs in the private sector and embarked on extensive public works projects — such as the construction of a national highway system — to further utilize the unemployed. The measures worked. Unemployment fell from its peak of 6 million in 1933 to just 200,000 in 1938 (Childs, 59).

In accordance with Hitler's plan to rid Germany of undesirable social groups, Jews were subjected to increasingly repressive laws. By the late 1930s, Jews found it difficult even to procure the necessities of daily life, much less find employment (Shirer, 233). This, in turn, freed up jobs for the Aryan labor force the regime was working so hard to court.

As it pushed Jews to the bottom rung of society, the government was hard at work promoting the idea of class equality among Germans. Slogans like "labor ennobles" were used to fuel the popular conception of an "army" of blue-collar workers and to discourage upward mobility (Frei, 80).

Perhaps even more important to the German worker than low unemployment was the Nazi trump card: nobody went hungry. Germans could make do with margarine instead of butter if it meant unlimited helpings (Frei, 78).

Business Elites and the Nazi Economic Framework

The other piece of the economic puzzle was the satisfaction of the business elite, who had contributed heavily to the initial rise of the Nazi party. To be sure, increased restrictions and red tape made doing business a hassle, and all production had to ultimately support Germany's war effort. However, national mobilization meant lucrative government subsidies and contracts, the elimination of organized labor removed the arch-enemy of big business, and — most significantly — profits increased from 2% in 1926 to more than 6% in 1938 (Shirer, 262).

Thus, productivity and economic growth formed the backbone of the Third Reich. With two important classes of people pulling mightily for the state, Nazi Germany had a solid foundation upon which to build a regime intended to last a thousand years.

Social Programs, Morale, and Propaganda

The German economy was booming, but the Third Reich still faced the challenge of keeping morale and popular support high. The war effort necessitated a Spartan — if not needy — existence for most people. Furthermore, diminished civil liberties deprived citizens of many forms of self-expression, and the very real potential for a morale crisis loomed. Again, through a program of social measures, the Nazi regime was able to avert any such crisis and even boost the spirits of its people to a fever pitch.

One shrewd calculation of the government was that in times of reduced luxury, the occasional dose of the good life would seem doubly sweet. When butter and sausage were in short supply, vacations to the North Sea, company parties, and nights out at the opera provided both incentives and rewards for the continued efforts of the people (Frei, 82). Services were also a handy tool for the government. By making healthcare a priority, Hitler could be seen to be helping the populace while at the same time ensuring an able-bodied workforce, and ultimately, a capable military (Frei, 123).

If such "sweeteners" helped keep morale high, they served another purpose as well. By promoting a narrow canon of arts and culture, the Third Reich was able to inundate its message and ideology more thoroughly into the populace. As in the Soviet Union, thousands of books, plays, and films were banned, but an entire body of pro-Nazi culture was created to take their place (Shirer, 241–243). The active promotion of this culture, which glorified Germany and the Aryan worker, served as both entertainment for the masses and propaganda for the state.

Of course, all these social programs cost money. Rearmament required all spare state funds, so the government established programs of "voluntary" donation and wage deduction, through which the people could fund their own enlightenment. With the Gestapo on hand to encourage reluctant donors, participation in these programs was nearly universal (Frei, 83).

Hitler's government had achieved nothing short of a public relations miracle. Not only had the Third Reich implemented an ambitious array of morale-boosting social programs, but the citizenry had happily footed the bill. With such a strong social fabric in place, the Third Reich looked as if it could achieve anything.

Conclusion

While the next generation of Nazi youth never came to fruition, Hitler's regime had in place two strong institutions to ensure their competence and devotion. The German educational system and the Hitler Youth combined to mold generations of future Nazis with clear ideology and strong character.