HITLER'S SUCCESS AFTER 1933 - GERMANY'S ECONOMIC RECOVERY
It’s often been claimed, even by some supposedly reputable scholars, that Hitler’s success in reviving his nation’s economic life was based largely on government spending for rearmament and preparation for war. This is a myth. As the British historian A. J. P. Taylor noted: “Germany’s economic recovery, which was complete by 1936, did not rest on rearmament; it was caused mainly by lavish expenditure on public works, particularly on motor roads, and this public spending stimulated private spending also, as British economist Keynes had said it would. Hitler actually skimped on armaments, despite his boasting, partly because he wished to avoid the unpopularity which a reduction of the German standard of living would cause, but more from the confident belief that he would always succeed in bluff. Thus, paradoxically, while nearly everyone else in Europe expected a great war, Hitler was the one man who neither expected nor planned for it.”
In an address given in December 1941, Hitler himself compared the record of his government and that of President Roosevelt in dealing with the challenge of the world economic crisis. “Whereas the German Reich experienced an enormous improvement in social, economic, cultural and artistic life in just a few years under National Socialist leadership,” he said, “President Roosevelt was not able to bring about even limited improvements in his own country. This task should have been much easier in the United States, with barely 15 people per square km, as compared to 140 in Germany. If economic prosperity is not possible in that country, it must be the result of either a lack of will by the ruling leadership or the complete incompetence of the men in charge. In just five years, the economic problems were solved in Germany and unemployment was eliminated. During this same period, President Roosevelt enormously increased his country's national debt, devalued the dollar, further disrupted the economy, and maintained the same number of unemployed.”
Could Hitler’s economic policies work in the United States? These policies are probably most workable in countries such as Sweden, Denmark, and the Netherlands, with a well-educated, self- disciplined and ethnically-culturally cohesive population, and a traditionally strong “communitarian” ethos with a correspondingly high level of social trust. Hitler’s economic policies are less applicable in the United States and other societies with an ethnically-culturally diverse population, a markedly individualistic, “laissez-faire” tradition, and a correspondingly weaker “communitarian” spirit.
David Lloyd George — who had been Britain’s prime minister during the First World War -- made an extensive tour of Germany in late 1936. In an article published afterwards in a leading London newspaper, the British statesman recounted what he had seen and experienced. “Whatever one may think of his [Hitler’s] methods,” wrote Lloyd George, “and they are certainly not those of a parliamentary country, there can be no doubt that he has achieved a marvelous transformation in the spirit of the people, in their attitude towards each other, and in their social and economic outlook.
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