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The Nazi War Economy: 1939-1945


Nonetheless, the inability of the government to solely mobilize the economy towards war and the lack of central planning, which sustained an inefficient economy proves that the economy was unsustainable and therefore unsuccessful.
             However, when Speer took over the economy, he addressed these underlying structural weaknesses and was able to improve the economy by establishing greater central control and coordination. For example, he exerted greater control over the armed forces by making them submit requirements to Speer's ministry. This clarified what their aims had to be, making it easier to plan and increase efficiency. Moreover, he was able to reduce corruption through issuing a decree punishing anyone who made false claims of labour, revealing the true industrial capacity that could now be utilized effectively. Similarly, Speer was able to bring the Gauleiters under control through threatening to stop providing them with coal. This limited the actions of careerists that put their personal motives before the economy as a whole, further promoting economic efficiency. Furthermore, he prioritised more effectively, halting all post war construction programmes that wasted resources so that all efforts were concentrated towards the war effort. The labour force was utilized more effectively so that women were included and factories ran 3 shifts instead of 1 or 2. Within 6 months Speer's policies had led to an increase in ammunition output had increased by 17%, whilst arms productivity had risen by 60%, demonstrating how the economy was vastly improving. However, he was unable to transform the competing nature of the Nazi state, which prevented the economy from fulfilling its full potential. For example, Lammers and Bormann prevented Speer from further coordinating the economy by ensuring that their associate rather than Speer's was granted powers of labour deployment commissioner, illustrating how total control was never achieved and the economy remained disorganised.


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