1. HIST2134 The Third Reich through Documents, 1933-1945 Lecture 4: Domestic policies of the Third Reich, 1933-39 19 February 2013

2. Consolidation/coordination of power in Federal States, 1933: Sandwiched: SA terror + NS pressure Taken over: Police forces partly by SS Dismissed: democratic states’ governments Replaced: Appointment of special commissioners (= Reichsstatthalter = NSDAP district Gau leaders)

3. Dualism of State and Party → Gau leaders (NS district leaders) in dominant position in federal states → Permanent conflicts: States’ administrations ≠ regional & local NSDAP branches → Growing rivalry in ‘even working better for Hitler’ ► Increasing dualism of state + NSDAP = First Step into Polycracy

4. Polycratic system (1) Rivalling Power groups: NSDAP: ‘The Party’ (Die Partei) SA (Sturmabteilung) : Storm Detachment SS (Schutzstaffel) : Defence Unit/Elite Guard SD (Sicherheitsdienst) : Security Service Army (Wehrmacht) Big Business Higher levels of government offices

5. Polycratic system (2) Gradual power shift of rivalling groups: SA ☻→ SS ☺ + Army ☺ (1934) Bureaucracy ☻→ NS Special Administrations ☺ Judiciary + Police ☻→ SS ☺ Big Business: peace years ☺ → war ☻

6. Polycratic system (3) Hitler not mediator between rivalling power groups H. as divider by issuing often impulsive, uncontrollable, separate dictatorial orders (Führerbefehle) → ‘Social Darwinism’: “Survival of the fittest” → NS state constitution not achieved until 1945 = “Unity of Party and State”: NS propaganda = Improvisation, conflict, bureaucratic chaos: NS reality

7. Polycracy: Reasons Integrated school / approach: e. g.: Ian Kershaw (Hitler, 1998): H’s chaotic style of government → bureaucratic chaos H’s dialectic interplay with structures = H’s mainly responsible for creating ‘political climate’ of NS dynamic-destructive activities

8. NS ‘Economic Miracle’ (1) World-wide economic recovery ‘Policy of deficit financing’ (J.M. Keynes): 1)Capital investments into key sectors 2)Tax relieves for key sectors 3)Labour programs (Labour Service = RAD) 4)Loans for female staff to quit their jobs = domestic market oriented strategy

9. NS ‘Economic Miracle’ (2) ‘Policy of autarky’ (H. Schacht’s New Plan 1934: 1) Promotion of German exports 2) Quotas on foreign exchange trade to reduce imports 3) Strictly bilateral trade + payments = foreign markets oriented strategy

10. NS ‘Economic Miracle’ (3) Short-term economic policy to resolve the economic crisis ? OR Long-term economic policy to support rearmament ? ► Interdependent process with emphasis on rearmament to prepare for war

11. NS ‘Economic Miracle’ (4) Drastically drop of unemployment figures Strong rise of heavy + light industry Less rise of consumer good industry A miracle? → World-wide economic recovery → Labour Service + compulsory military service → Rearmament as stimulus

12. Four-Year Plan (1) Centralized control of German economy Aimed to make army + economy ready for war 4 priorities: 1) Increase in agricultural production 2) Retraining of labor force in key sectors of industry 3) Import + export regulation 4) Self-sufficiency in raw materials

13. Four-Year Plan (2) Hermann Göring as ‘economic dictator’ New NS bureaucracy to control economy Founding of NS holding enterprises (‘Reichswerke Hermann Göring’) Limited freedom of private enterprises = Centrally regulated market economy

14. Four-Year Plan: Results Difficult balance of consumer good + armament production, 1936-42 Autarky partly achieved in 1939 Only short ‘Blitz Wars’ possible, 1939/40 Long war only possible by expansion + occupation + plundering, since 1941