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How Hitler Got Germany out of the Depression

bballcrook21
Posts: 4,468
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1/20/2016 2:02:43 AM
Posted: 10 months ago
Hitler introduced a number of measures that pulled Germany out of the Great Depression before any other major industrial power.

Firstly, an economic expert, President of the Reichsbank Hjalmar Schacht, was put in charge of the economy (none of the leading Nazis knew much about economics) as Minister of Economics. He decided to implement Keynesian economics on a massive scale.

He thus began a large Public Works program to reduce unemployment. The main manifestation of this was the building of the autobahns, the German motorway network. Work on the autobahns was deliberately made labor intensive, with as few heavy machines used as possible, in order to prolong the construction time. This meant more jobs were provided over a longer period of time.

Secondly, all materials needed for the Public Works program was ordered from German companies and factories, and not just the big corporations. Small and medium sized businesses, as well as big business, were given generous government contracts, enabling them to hire more workers to meet the orders, thus reducing unemployment even further. All German companies were also offered cheap government loans so they could modernize their machinery, shop-floors, and other equipment.Again, this provided more jobs as the companies ordered new machinery and equipment.

As for agriculture, farmers were also offered cheap government loans to buy fertilizers, tractors, livestock and everything necessary to modernize their farms and increase agricultural production.Once again, these materials and manufactures were purchased from German companies, meaning more jobs for Germans.

All this was paid for with MEFO Bills, a government credit note redeemable 5 years after its issue to the company or borrower; thus, anyone taking up the loans or contracts had,of necessity, to order what they wanted from German companies, which were ordered to accept MEFO Bills as payment.

All this reduced German unemployment to virtually zero by the beginning of 1936. The commensurate reduction in government expenditure on welfare payments as unemployment fell boosted government finances, as did the rapid increase in tax revenues as the number of those in employment rose.

All these things combined to get Germany out of the Great Depression. Rearmament WAS NOT a major factor in this - rearmament didn't begin on a wide scale under the Nazis until well into 1936, when the German economy was already out of depression,and was strong and healthy.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

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Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
Geogeer
Posts: 4,227
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1/20/2016 10:43:24 PM
Posted: 10 months ago
At 1/20/2016 2:02:43 AM, bballcrook21 wrote:
Hitler introduced a number of measures that pulled Germany out of the Great Depression before any other major industrial power.

Firstly, an economic expert, President of the Reichsbank Hjalmar Schacht, was put in charge of the economy (none of the leading Nazis knew much about economics) as Minister of Economics. He decided to implement Keynesian economics on a massive scale.

He thus began a large Public Works program to reduce unemployment. The main manifestation of this was the building of the autobahns, the German motorway network. Work on the autobahns was deliberately made labor intensive, with as few heavy machines used as possible, in order to prolong the construction time. This meant more jobs were provided over a longer period of time.

Secondly, all materials needed for the Public Works program was ordered from German companies and factories, and not just the big corporations. Small and medium sized businesses, as well as big business, were given generous government contracts, enabling them to hire more workers to meet the orders, thus reducing unemployment even further. All German companies were also offered cheap government loans so they could modernize their machinery, shop-floors, and other equipment.Again, this provided more jobs as the companies ordered new machinery and equipment.

As for agriculture, farmers were also offered cheap government loans to buy fertilizers, tractors, livestock and everything necessary to modernize their farms and increase agricultural production.Once again, these materials and manufactures were purchased from German companies, meaning more jobs for Germans.

All this was paid for with MEFO Bills, a government credit note redeemable 5 years after its issue to the company or borrower; thus, anyone taking up the loans or contracts had,of necessity, to order what they wanted from German companies, which were ordered to accept MEFO Bills as payment.

All this reduced German unemployment to virtually zero by the beginning of 1936. The commensurate reduction in government expenditure on welfare payments as unemployment fell boosted government finances, as did the rapid increase in tax revenues as the number of those in employment rose.

All these things combined to get Germany out of the Great Depression. Rearmament WAS NOT a major factor in this - rearmament didn't begin on a wide scale under the Nazis until well into 1936, when the German economy was already out of depression,and was strong and healthy.

Reneging on the WWI reparation repayments didn't hurt either.
BlazingRodent
Posts: 1,044
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1/21/2016 2:31:37 AM
Posted: 10 months ago
At 1/20/2016 2:02:43 AM, bballcrook21 wrote:
Hitler introduced a number of measures that pulled Germany out of the Great Depression before any other major industrial power.

Firstly, an economic expert, President of the Reichsbank Hjalmar Schacht, was put in charge of the economy (none of the leading Nazis knew much about economics) as Minister of Economics. He decided to implement Keynesian economics on a massive scale.

He thus began a large Public Works program to reduce unemployment. The main manifestation of this was the building of the autobahns, the German motorway network. Work on the autobahns was deliberately made labor intensive, with as few heavy machines used as possible, in order to prolong the construction time. This meant more jobs were provided over a longer period of time.

Secondly, all materials needed for the Public Works program was ordered from German companies and factories, and not just the big corporations. Small and medium sized businesses, as well as big business, were given generous government contracts, enabling them to hire more workers to meet the orders, thus reducing unemployment even further. All German companies were also offered cheap government loans so they could modernize their machinery, shop-floors, and other equipment.Again, this provided more jobs as the companies ordered new machinery and equipment.

As for agriculture, farmers were also offered cheap government loans to buy fertilizers, tractors, livestock and everything necessary to modernize their farms and increase agricultural production.Once again, these materials and manufactures were purchased from German companies, meaning more jobs for Germans.

All this was paid for with MEFO Bills, a government credit note redeemable 5 years after its issue to the company or borrower; thus, anyone taking up the loans or contracts had,of necessity, to order what they wanted from German companies, which were ordered to accept MEFO Bills as payment.

All this reduced German unemployment to virtually zero by the beginning of 1936. The commensurate reduction in government expenditure on welfare payments as unemployment fell boosted government finances, as did the rapid increase in tax revenues as the number of those in employment rose.

All these things combined to get Germany out of the Great Depression. Rearmament WAS NOT a major factor in this - rearmament didn't begin on a wide scale under the Nazis until well into 1936, when the German economy was already out of depression,and was strong and healthy.

Indeed that is true.
innomen
Posts: 10,052
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1/21/2016 8:06:42 AM
Posted: 10 months ago
1. Confiscation of huge amounts of private assets.
2. Slave labor.
3. Exploitation of foreign resources.
4. Great reduction of government dependence by those who are physically or mentally incapable of sustaining themselves.