2.3.5

War Economy

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The Wartime Economy Between 1939-1942

The German economy was inefficient in the early years of the war. It was bloated by duplicated bureaucracy and undermined by competing departments and Nazi in-fighting.

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Poor organisation

  • The economy was chaotic and had poor bureaucratic organisation.
  • It was inefficient.
  • Shortages, duplication and waste meant Britain spent much less but produced much more.
  • Non-standardised weapons meant different parts of the armed forces required different supplies, increasing costs and reducing economies of scale.
  • Labour was not effectively used, so factories were not running optimally, and the Nazis were slow to exploit women in war-related work.
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Civilians

  • Hitler was initially concerned to maintain civilian morale and wanted production of food and consumer good maintained.
  • Nevertheless, rationing was introduced.
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Operation Barbarossa

  • Operation Barbarossa (the invasion of the Soviet Union 1941) was a turning point for the German economy.
  • High casualties led to more men being drafted and the campaign had exhausted vast quantities of ammunition and equipment that needed to be replaced.

The Wartime Economy Between 1942 and 1945

Albert Speer (Hitler's architect) was appointed to run the war economy in 1942. This dramatically improved the German economy.

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Improved efficiency

  • Speer increased standardisation of ammunition, rationalised transport production and coordinated the supply of resources to where need was greatest for the war.
  • Speer changed shift rotations to three per day, increased use of concentration camp and foreign labour, and sent more women to work in war-related industries.
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Corruption

  • Corrupt arms manufacturers (e.g. false claims for raw materials) were punished.
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Problems facing Speer

  • Production was disrupted by the conscription of skilled labour and Allied bombing campaigns targeting German productive capacity.
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Evaluation of Speer

  • By 1943 Speer had increased ammunition output by 97%, arms by 60% and tanks by 25%.
  • By 1944, ammunition and tank output were six times greater.

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1The Weimar Republic 1918-1933

2Nazi Germany 1933-1945

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