Nazi economic collapse before WWII

From my limited understanding of the economics of Nazi Germany, the Nazi economy consisted of the state gearing production toward an eventual war, but one that was ultimately unsustainable in the long run.

What type of circumstances could have caused the economy of Nazi Germany to collapse back to Great Depression levels prior to the outbreak of WWII?
 
I do not know much about economy, but perhaps mefo bills scheme fails spectacularly? Or simply Hjalmar Schacht dies in 1933 and his successor is not even half as good as Schacht was?
AFAIR the fast rearmament of Gerrmany and investing pretty much only in arms industry would have murdered German economy about 1938, if not for Schacht's tricks and gold reserves captured in Austria and Czechoslovakia, but even they would have only lasted until 1940.
 
From my limited understanding of the economics of Nazi Germany, the Nazi economy consisted of the state gearing production toward an eventual war, but one that was ultimately unsustainable in the long run.

What type of circumstances could have caused the economy of Nazi Germany to collapse back to Great Depression levels prior to the outbreak of WWII?
Prior? How soon? In March 1939 they got huge part of Czechoslovak gold reserves.
In October 1938 Czechoslovakia had to pay huge sum of money for currency reform at territories gained by Germany after Munich. Could it help help a bit?
 
Prior? How soon?

That's a good question. When he first became Chancellor, Hitler wanted to ditch the public works programmes, economic planning, etc. put in place by Schleicher. His advisors talked him out of it (Schacht especially, I think). If they'd failed and Hitler had remained firm on economic policy, the German economy would likely not have recovered in the first place.
 
Finding the Austria national treasury empty & the Austrian banks weak. The role of the Austrian annexation in keeping Germany financially afloat into 1939 is little studied. Had the Austrian government been spendthrift, or buried the reserves in the cemetery, or simply made annexation impossible the nazis would have been hard pressed to sustain government operations, or support the payment for imports. How exactly that would play out as a 1937-38 financial crisis I cant say, other than it would be bad for the nazi government & party.
 
What about putting the reserve in Switzerland, then inviting most of the people who know about it to emigrate.
 
I do not know much about economy, but perhaps mefo bills scheme fails spectacularly? Or simply Hjalmar Schacht dies in 1933 and his successor is not even half as good as Schacht was?
AFAIR the fast rearmament of Gerrmany and investing pretty much only in arms industry would have murdered German economy about 1938, if not for Schacht's tricks and gold reserves captured in Austria and Czechoslovakia, but even they would have only lasted until 1940.

the were close to financial collapse in 1938.
reason Hitler was "trowing the money out the window" on rearmament of Wehrmacht, building the Autobahn and his megalomaniacal buildings
and minister of finance and economic during that time was Feldmarschall Herman Göring ! :eek:
so there is a realistic scenario were third Reich could economy collapse.

Hitler solve the problem by removing Herman Göring from this post, and attack poland and switch to War time Economics.
that is taking the richness of conquer country and use it for own Economics...

Back to The Third Reich goes bankrupt and economy collapse before WW2.
the Germans will wake up from there illusion that Nazi is the salvation from Chaos of Weimar.
but there only a bunch of hypocrites who transform Germany into Dictatorship.
at begin the people will to hoot on Hitler and others on Public meetings
then they will trow rotten eggs and tomatoes on Hitler.
next they try to shoot or bomb him.
in end it will a civil war between the Nazi system and the common people...
 
the were close to financial collapse in 1938.
reason Hitler was "trowing the money out the window" on rearmament of Wehrmacht, building the Autobahn and his megalomaniacal buildings
and minister of finance and economic during that time was Feldmarschall Herman Göring ! :eek:
so there is a realistic scenario were third Reich could economy collapse.
Göring was never the minister of finance or minister for the economy.
He was indeed bestowed vast powers over the economy in October 1936, when Hitler made him the Reich's Plenipotentiary for the Four Year Plan. Needless to say Göring did not have the knowledge or work moral to fill his post effectively.
The Minister of Finance until that date was Hjalmar Schacht. He resigned in 1937 at Göring's request, with Schacht's protests against the speed of re-armament being the underlying reason. Schacht's successor was Walther Funk.
 
Gregg said:
If they'd failed and Hitler had remained firm on economic policy, the German economy would likely not have recovered in the first place.
Wasn't recovery well underway already? The Nazis tend to get the credit, but AIUI, the Weimar gov't had done the heavy lifting. Or does Hitler's change in direction bugger that?
 
This definitely could happen. And I wonder what would happen in that case. Would the military take over, tell the world what Hitler had planned, and then suggest "since we have the weapons already, why don't we all make war against Stalin together"?
 
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