The title is a little misleading: while Tooze occasionally mentions in passing how companies or individuals benefited from fueling the Third Reich's war effort, his real topics are far broader and more interesting: showing how economic factors drove Hitler's war goals and timing and how the continual feedback between industrial needs and war goals drove war strategy.
Tooze starts by describing the quandary which faced Germany in the late 1920's. Germany was not self sufficient in food or raw materials and thus needed to be able to export in order to finance essential imports. Germany also needed to be able to sell its exports in order to obtain hard currency to pay the reparation demands from the World War I victors. Despite these difficulties, the German finance ministry was managing to navigate Germany through a slow and painful recovery from WWI. Then disaster struck with the Great Depression. First there was an inevitable shrinking in export markets and then, much more seriously, there were conscious protectionist decisions in America, Britain, and France to block German exports in order to protect home employment.
Before reading The Wages of Destruction, I had loosely understood how the Great Depression had been a key factor in Hitler's rise to power, especially due to widespread unemployment. But Tooze clarifies that Germany was facing a much deeper strategic dilemma than a simple economic depression. Germany was dependent on the goodwill of other powers for its export markets and for its essential food and material imports, but those powers were demonstrating that in a crisis they would look entirely to their own interests and would quite cheerfully close their markets and let Germany suffer. Given this behavior, the long-term economic and political future for Germany looked extremely grim. Hitler offered a radical solution to this problem: Germany needed to expand to the East and become self sufficient in resources in the same way as the British Empire or America. Given the depth of Germany's problem, it becomes easier to understand why many thinking Germans either enthusiastically or reluctantly accepted Hitler's solution.
In succeeding chapters, Tooze describes how Hitler rapidly switched the Germany economy to focus on rearmament. He argues that while the Nazi propaganda machine emphasized efforts to increase employment and visionary projects such as the autobahn system, this was really mere window dressing and the regime was massively focused on military preparations for war. More interestingly, he also highlights how the continual shortages of hard currency (and thus of key materials) continually constrained and shaped rearmament. By 1938 lack of currency and other economic constraints were limiting further military expansion. Hitler was thus faced with a situation where Germany could see its own military abilities peaking and simultaneously see other powers starting to accelerate their own rearmament, weakening Germany's relative advantage. Hitler being Hitler, this drove an impatience for war, while Germany had its best relative position. As the war progresses, Tooze revisits this theme from several angles. Hitler was continually faced with situations where enemy military production would quickly eclipse Germany's and he reacted by trying to knock particular opponents out of the war quickly.
Tooze's major focus is on the operations and outputs of the German wartime economy. Overall, he shows us an economy that was reasonably well run and efficient but where production was dominated by shortages of key resources, especially steel and skilled manpower. By making high-level decisions about reallocations of these resources the Reich leadership could cause major leaps (or declines) in production in target sectors such as aircraft or tanks or munitions. Typically these resource shifts would take about six months to work through the system. The lucky Nazi bureaucrat who happened to be in charge of a target sector at the end of the six months would then happily boast of his productivity miracle as his sector suddenly produced startling jumps in output.
Tooze does not shy away from describing and condemning the many darker aspects of the Third Reich's war economy. A major aim of the expansion to the East was to improve Germany's food supplies. But that land was already inhabited and that food was already being consumed. So the Nazi solution was the "Hunger Plan" which quite casually assumed that food would be diverted from Poland and the Western USSR to Germany and that many millions would be deliberately starved. Tooze argues that this appalling plan was widely circulated, understood and accepted among the German political and military leadership in 1941. Thankfully, it proved difficult to execute and while there was widespread suffering, the East avoided the systematic mass starvation called for in the plan. However, in subsequent years the same desire to remove what were seen as "useless mouths" and free up food supplies was one of the many input factors towards the holocaust. In parallel, Germany manpower shortages led to large drafts of forced labor from occupied countries to German factories. Tooze illustrates both the appalling conditions of the laborers and the folly of a regime that for ideological reasons oppressed and starved the very labor it was trying to exploit.
Overall, I found this book a very enlightening read. Tooze's thorough analysis of the details of exports, imports, and production constraints provides a convincing base for his explanation of how the constraints and limits of the German economy drove high level German economic and military planning.
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Michael BTheol DipEd
November 11, today is one day in a century and shares with 1918, a date.
Reviewed in Australia on November 11, 2018