This page discusses the view that the Nazis' goal was always European war, and that the actions they took aimed to ensure Germany's economy was ready for such an event.

1. Creating an economy
geared towards war?

2. Hitler faced an economic
dilemma when he took power
in January 1933.
On the one hand he knew he
needed to rebuild Germany’s
economy to win public support.
However he equally needed to
assemble a strong military.
His plans had to reflect both of
these realities.

3. His main economic advisor – at
least until 1937 – was Hjalmar
Schacht. Schacht believed that
Germany could only be strong
with a vibrant private economy,
selling domestically and
exporting large amounts too.
However this was at odds with
Hitler’s military demands,
supported by men like Goering.

4. The German goal of autarky
(meaning the country did not
need imports) was a clear step
towards a war economy.
Nazi leaders recognised that
Germany lost World War One
partly because economic
blockades, and did not want a
repeat, even though this makes
little economic sense.

5. As a result, Germany focused on
building an economy that could
meet all domestic and military
needs in time of war, even
though this meant spending
more than might be the case if
goods were imported.
This partly lay behind the need
for territorial expansion to
meet these demands.

6. However Hitler also recognised
the need to win public
support. An economy which
could not meet needs for
private consumption could lead
to resentment towards the
government, and so Hitler too.
Thus, until 1936, German
spending was focused on
meeting all economic needs.

7. Eventually though it is clear
that the economy was geared
up towards preparation for
war, most notably through the
Four Year Plan – a clear choice
of guns over butter.
Government spending between
1939-1938 also shows a
massive military focus (around
1 billion RM in 1933 to 13
billion RM by 1938).

8. All of this had a knock-on effect
on private industry, including a
skills shortage as many
trained workers were focused
on military activities.
In addition the government
control of private businesses –
including setting quotas for
production – emphasised that
military concerns outweighed
all other demands.

9. Many historians split the 1933-
1939 period into two stages:
• 1933-1936: economic
recovery – including public
spending and consumer
demand - is key feature of
German economic policy
• 1936-1939: rearmament
and war preparation is the
overriding priority

10. Historians’ views
• Wolfgang Benz (2006): From 1933-36 Nazi economic policy
was more concerned with recovery than rearmament but from
1936 rearmament became the absolute overriding priority
• Tim Kirk: Nazi economic policies only make sense when they
are seen as part of a combined economic and foreign policy.
• Adam Tooze (2008): Rearmament was clearly the dominating
feature of economic policy in the Third Reich.
• Roderick Stackelberg (2009 edn): After 1936 preparation for
war was “the chief economic goal of the Nazi regime”.