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Nazi Economics 101 (Read 621 times)
WJV
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Nazi Economics 101
Aug 27th, 2016 at 11:11pm
 
The economy of the German National Socialists was a stunning success so I am surprised that most people seem quite ignorant in regard to the economic theories of National Socialism. It is right to learn -- even from the enemy. I have studied the economic ideas of the National Socialist Party to try to better understand the economic miracle of the pre-war nazi economy. In my opinion the economics of National Socialism is certainly worth consideration in modern times because the economic miracle of pre-WW2 Nazi Germany could offer us ideas that could help with the global economy post-GFC.

Many people are drawn to various communists and their economic ideas but due to the Nazi Party being associated with most terrible crimes against humanity and the most evil man in history -- the succesful economic ideas of the National Socialists have been lost to history in many ways. Most anti-capitalists will know of the ideas of Karl Marx but few know of the economic ideas Hitler or National Socialist economist Schacht or Feder.

The germination of National Socialist economics occurred while Hitler heard National Socialist economist Feder giving a speech on the topics of stock exchange and loan capital.

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In my eyes Feder's merit consisted in having established with ruthless brutality the speculative and economic character of stock exchange and loan capital, and in having exposed its eternal and age-old presupposition which is interest. His arguments were so sound in all fundamental questions that their critics from the start questioned the theoretical correctness of the idea less than they doubted the practical possibility of its execution.

- Adolph Hitler/Mein Kampf/Chapter VIII: The Beginning of My Political Activity

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As I listened to Gottfried Feder's first lecture about the 'breaking of interest slavery,' I knew at once that this was a theoretical truth which would inevitably be of immense importance for the future of the German people. The sharp separation of stock exchange capital from the national economy offered the possibility of opposing the internationalization of the German economy without at the same time menacing the foundations of an independent national self-maintenance by a struggle against all capital. The development of Germany was much too clear in my eyes for me not to know that the hardest battle would have to be fought, not against hostile nations, but against international capital. In Feder's lecture I sensed a powerful slogan for this coming struggle
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And here again later developments proved how correct our sentiment of those days was. Today the know-it-alls among our bourgeois politicians no longer laugh at us: today even they, in so far as they are not conscious liars, see that international stock exchange capital was not only the greatest agitator for the War, but that especially, now that the fight is over, it spares no effort to turn the peace into a hell.

The fight against international finance and loan capital became the most important point in the program of the German nation's struggle for its economic independence and freedom.

- Adolph Hitler/Mein Kampf/Chapter VIII: The Beginning of My Political Activity

The National Socialists hated communism but their economic ideas are concerned primarily with protecting the economic independence of the nation of Germany against International Capital. Hitler was against globalization -- or internationalzation of the global economy under bourgeois capitalism. The National Socialists were isolationist and supported National Capital over International Capital. National Socialist economics associated the speculation of stock exchange and loan capital with the loss of German sovereignty/national independence.

Economy is secondary in National Socialist philosophy but the protection of the national economy is a vital National Interest.i National Socialists consider economic independence as being essential to protecting sovereignty. To achieve economic independence the National Socialists used a policy of economic autarky/isolationism.

National Socialism is all about unleashing the national private economy by creating economic and social harmony between the public and private sector. National Socialist philosophy  considers true value to be in work and production -- not in interest and speculation. This is key to National Socialist philosophy.
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WJV
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Re: Nazi Economics 101
Reply #1 - Aug 27th, 2016 at 11:15pm
 
The economic miracle of pre-WW2 Nazi Germany occurred while Germany was suffering from the brutal Treaty of Versailles that the allies had forced on Germany after WW1. The economic miracle also occurred during The Great Depression which makes the economic success of the National Socialists all the more remarkable. The majot probem facing the people of Germany was that they had no capital. The nation of Germany had experienced hyperinflation and had no gold. the only thing that the Germans had was work and production. The National Socialists decided that Germany did not need money so long as the people would work and produce real value. National Socialism is not just concerned with unleashing the national private economy but also with unleashing the potential that the people have to contribute to the National Interest.

The massive public works projects that the National Socialists used to reduce unemployment while upgrading national infrastructure and security were paid for with German Marks. The idea for the German Marks is very similar to the Lincoln Greenbacks used by Abraham Lincoln to fund the Yankees in the American Civil War.This idea is paper money issued by the state that can only be spent within the nations borders. Since Germany was under a policy of virtual autarky not only was the German Marks system possible but it also encouraged national growth and protected against even minor flight of capital. The Marks worked so well that a time came when some nations were accepting German Marks as international currency. Having no gold or capital could not keep the Germans down so long as they were willing and not prevented from working and producing real value.

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The Nazis came to power in Germany in 1933, at a time when its economy was in total collapse, with ruinous      war-reparation obligations and zero prospects for foreign investment or credit. Yet through an independent monetary policy of sovereign credit and a full-employment public-works program, the Third Reich was able to turn a bankrupt Germany, stripped of overseas colonies it could exploit, into the strongest economy in Europe within four years, even before armament spending began.

Billions for the Bankers, Debts for the People (1984), Sheldon Emry comment

A very interesting exchange betwehjalmar schacht  economist Hjalmar Schacht and an American banker highlights just how different German and American thinking on banking were. The American banker commented - "Dr. Schacht, you should come to America. We've lots of money and that's real banking." Schacht replied, "You should come to Berlin. We don't have money. That's real banking."

It is almost comical that the western capitalists claimed to be fighting for the maintenance of the gold standard when we consider the absurdity that modern capitalism has descended to with the USA in control since the Bretton Woodsi nstitutions were  established by the victors of WW2. Hitler and the National Socialists found solutions to overcome National Debt and in my opinion Europe and especially the USA need to look for solutions to their own National Debt problems wherever they can be found.

Quote:
To take another instance where we are condemned: They claim to be fighting for the maintenance of the gold standard as the currency basis. That I can well believe, for the gold is in their hands. We, too, once had gold, but it was stolen and extorted from us. When I came to power, it was not malice which made me abandon the gold standard. Germany simply had no gold left. Consequently, quitting the gold standard presented no difficulties, for it is always easy to part with what one does not have. We had no gold. We had no foreign exchange. They had all been stolen and extorted from us during the previous fifteen years. But, my fellow countrymen, I did not regret it, for we have constructed our economic system on a wholly different basis. In our eyes, gold is not of value in itself. It is only an agent by which nations can be suppressed and dominated.

- Adolph Hitler/Speech Dec 10 1940

International Finance was able to use National Debt to suppressed and dominated Germany in a very similar way to how much of modern continental Europe has been suppressed and dominated by the IMF and international capital.
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WJV
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Re: Nazi Economics 101
Reply #2 - Aug 27th, 2016 at 11:17pm
 
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     The German capacity for work is our gold and our capital, and with this gold I can compete successfully with any power in the world. We want to live in houses which have to be built. Hence, the workers must build them, and the raw materials required must be procured by work. My whole economic system has been built up on the conception of work. We have solved our problems while, amazingly enough, the capitalist countries and their currencies have suffered bankruptcy.

        Sterling can find no market today. Throw it at any one and he will step aside to avoid being hit. But our Reichsmark, which is backed by no gold, has remained stable. Why? It has no gold cover; it is backed by you and by your work. You have helped me to keep the mark stable. German currency, with no gold coverage, is worth more today than gold itself. It signifies unceasing production. This we owe to the German farmer, who has worked from daybreak till nightfall. This we owe to the German worker, who has given us his whole strength. The whole problem has been solved in one instant, as if by magic.

        My dear friends, if I had stated publicly eight or nine years ago: 'In seven or eight years the problem of how to provide work for the unemployed will be solved, and the problem then will be where to find workers,' I should have harmed my cause. Every one would have declared: 'The man is mad. It is useless to talk to him, much less to support him. Nobody should vote for him. He is a fantastic creature.' Today, however, all this has come true. Today, the only question for us is where to find workers. That, my fellow countrymen, is the blessing which work brings.

        Work alone can create new work; money cannot create work. Work alone can create values, values with which to reward those who work. The work of one man makes it possible for another to live and continue to work. And when we have mobilized the working capacity of our people to its utmost, each individual worker will receive more and more of the world's goods.

        We have incorporated seven million unemployed into our economic system; we have transformed another six millions from part-time into full-time workers; we are even working overtime. And all this is paid for in cash in Reichsmarks which maintained their value in peacetime. In wartime we had to ration its purchasing capacity, not in order to devalue it, but simply to earmark a portion of our industry for war production to guide us to victory in the struggle for the future of Germany.

        My fellow-countrymen, we are also building a world here, a world of mutual work, a world of mutual effort, and a world of mutual anxieties and mutual duties. It did not surprise me that other countries started rationing only after two, three, five, and seven months, and in some cases only after a year. Believe me, in all these countries, this was not due to chance but to policy. Many a German may have been surprised that food cards appeared on the first morning of the war. Yet, there are, of course, two sides to this food card system. Some people may say: 'Wouldn't it be better to exclude this or that commodity from rationing? What use are a few grams of coffee when nobody gets much anyway? Without rationing, at least a few would get more.' Now that is exactly what we want to avoid. We want to avoid one person having more of the most vital commodities than another. There are other things - a valuable painting, for instance. Not everybody is in a position to buy a Titian, even if he had the money. Because Titian painted only a few pictures, only a few can afford his work. This or that man can buy one if he has enough money. He spends it, and it circulates through the country. But in the case of food, everybody must be served alike.

- Adolph Hitler/Speech Dec 10 1940

In modern times there are tensions between East and West and somewhat of a power struggle. I think that National Socialist economics is worth consideration to help find modern economic solutions but I also think it is important to consider Nazi economic philosophy to help us protect against those that would use nazi economic iideology in a negative or destructive way. I agree with the CPC that isolationism is a dead end street. The autarky of National Socialism is not a positive path to a nation achieving economic independence and economic independence can be achieved while a nation is still engaged with the global economy. I disagree with the National Socialists that interest and speculation do not constitute genuine value but regulation is needed. The National Socialists were not against the private economy in any way but the State had final say on all matters and business was regulated in the interest of the National Interest and by extension the people. The nominal socialism of National Socialism gives national capitalists freedom while protecting the people against the temptations and evils of unchecked surplus capitalism.
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Re: Nazi Economics 101
Reply #3 - Aug 27th, 2016 at 11:19pm
 
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     It is therefore understandable if an Englishman says: 'We do not want our world to be subject to any sort of collapse.' Quite so. The English know full well that their Empire is not menaced by us. But they say quite truthfully: 'If the ideas that are popular in Germany are not completely eliminated, they might become popular among our own people, and that is the danger. We do not want this.' It would do no harm if they did become popular there, but these people are just as narrow-minded as many once were in Germany. In this respect they prefer to remain bound to their conservative methods. They do not wish to depart from them, and do not conceal the fact.

        They say, 'The German methods do not suit us at all.'

        And what are these methods? You know, my comrades, that I have destroyed nothing in Germany. I have always proceeded very carefully, because I believe - as I have already said - that we cannot afford to wreck anything. I am proud that the Revolution of 1933 was brought to pass without breaking a single windowpane. Nevertheless, we have wrought enormous changes

- Adolph Hitler/Speech Dec 10 1940

National Socialists were not machine breakers like the Luddites. National Socialism was interested in using the best combinations in the interest of the nation. National Socialists were not out to 'bust the trusts' and were not against the private economy causing a rising tide that lifts all boats. The major problem with National Socialism was the autarky. Since the Cold War we have seen that minor differences in the characteristics of a nations economic philosophy do not need to lead to war or isolation. The differences being overcome by our two modern superpowers China and USA can be solved through diplomacy and compromise.

In my opinion China is similar to Germany in some ways and one of the major similarities that I see is that both economies have gained power by producing genuine value with work. In my opinion the CPC is far superior to National Socialist economic philosophy because the CPC is always positive and willing to compromise for win-win trade relationships that offer mutual benefit. China is progressive and realistic about the need for all nations to compromise in the interest of mutual gain and economic harmony. The CPC understand value better than the German National Socialist did in my opinion and I am happy that China always looks to be a positive and helpful member of the global community. The economic reforms that the CPC has carried out on SOE and many other initiatives such as the establishment of the Shanghai free trade zone as well as efforts to internationalize the yuan are evidence that the tensions between China and some in the US are nothing that cannot be overcome with diplomacy and trade.

In my opinion the CPC has an advanced perspective on political figures from the past.

"Revolutionary leaders are not gods, but human beings. (We) cannot worship them like gods or refuse to allow people to point out and correct their errors just because they are great. - President Xi Jinping

I think that in modern times we must take good ideas where we find them. We cannot allow emotion to cause us to ignore lessons that history can teach us. Not only is it important to learn from an enemy if it is possible but it is also important to understand your enemy and to know their rhythms.

Fas est et ab hoste doceri. - Ovid

Not only is it important to learn from an enemy if it is possible but it is also important to understand your enemy and to know their rhythms. In my opinion National Socialism needs more examination and this is more than possible withour excusing the horrific crimes against humanity committed by the Nazi Party.

National Socialist Economics deserve far more attention and in my opinion modern political theoreticians need to better understand the pre-WW2 Nazi economy.

In my opinion some of the basic concepts can be taken and applied to the Global Economy. The Nazi were against 'internationalization' but the ever evolving ambitions of megalomaniac Hitler certainly did include a global National Socialism as an end game.

Hitlers fascist allies in Italy and Spain all believed in a global fraternity being possible that was very much like a global corporatism.

I agree with National Socialism about maintaining the best combinations. The modern big corp is similar to the industrialist capitalists of the past. A rising tide certainly does cause all boats to rise It is a unique time in history and in my opinion the global private economy will be unleashed when there is harmony between the public and private sectors. If any ideas from National Socialism can help to reduce class conflict then they deserve consideration.
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Re: Nazi Economics 101
Reply #4 - Aug 27th, 2016 at 11:19pm
 
In my opinion the German Marks system and other National Socialist ideas may offer inspiration in finding solutions to western poverty. In my opinion the income of the working poor that are drowning in debt must be quarantined by the State. The State can help the poor that are in debt and living on credit to manage their finances. Some of the ideas of National Socialism may be able to be taken and applied to sections of the economy instead of being used for entire economies. The absolutism of the Nazi does not mean that certain economic ideas of the National Socialists cannot have value in modern times. Of course it is absurd to suggest that interest and speculation have no value. This is like claiming that advertizing has no value. These things do have value. What is the value of a tulip? The value of a tulip is the amount that a person is willing to spend on the tulip. Of course interest and speculation have value but in the interest of the alleviation of poverty it may be sensible for the poorest western citizens to have access to amnesty while the State helps them manage their finances and get back in the black. A poor person does not need money so much as State credit and public-private partnerships between the state and big corp may be the best path to the alleviation of western poverty and low- socioeconomic debt. Many western poor need help in managing their finances -- especially those with children. Some of the ideas of National Socialism will be no good for the broader economy but in my opinion National Socialist economic philosophy may contain ideas that can help the modern State reduce poverty and help the poorest citizens to lift themselves out of poverty.
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Re: Nazi Economics 101
Reply #5 - Aug 28th, 2016 at 8:01am
 
Interesting posts.
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perceptions_now
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Re: Nazi Economics 101
Reply #6 - Aug 28th, 2016 at 4:05pm
 
Well, I would suggest that Hitler, was not about "Economic miracles", but more into things such as getting rid of lots of Jews and replacing women jobs, with male jobs, plus going onto war footing, all of which reduced the Unemployment rate.

No Economic  miracles!
Just slight of hand!
A bit like current day Politicians & Magicians?
All show, But no Real substance!
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WJV
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Re: Nazi Economics 101
Reply #7 - Aug 30th, 2016 at 12:28am
 
Fringe.

I would suggest that I covered your nonsense in the script. Read it again.
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WJV
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Re: Nazi Economics 101
Reply #8 - Aug 30th, 2016 at 1:02am
 
perceptions_now wrote on Aug 28th, 2016 at 4:05pm:
Well, I would suggest that Hitler, was not about "Economic miracles", but more into things such as getting rid of lots of Jews and replacing women jobs, with male jobs, plus going onto war footing, all of which reduced the Unemployment rate.

No Economic  miracles!
Just slight of hand!
A bit like current day Politicians & Magicians?
All show, But no Real substance!


I posted some more information about National Socialism to help you out buddy. I put it in the fringe section for you just in case you have no come back like right here.

I am not even endorsing National Socialism. There was no need to put the Nazi Economics thread in Fringe just because it scared you.

edit - You let me know exactly what you disagree with and I will be sure to set you straight ok.
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