The Nazi regime was determined to ‘free’ Germans from the global economic system, a decision that reversed economic advancement and led to a staggering 600% increase in the cost of eggs. When Adolf Hitler assumed the position of chancellor, his government prioritized tariff policies. Alfred Hugenberg, Hitler’s Minister of Economics, voiced his support for increased tariffs in the agricultural sector within the first few days of Hitler taking power, highlighting the need to prevent any adverse effects on the industry.
Various members of Hitler’s cabinet shared concerns about international trade dynamics. Foreign Minister Konstantin von Neurath worried about lumber imports from Austria and a significant trade agreement with Russia worth 200-million-Reichsmark. The urgency of establishing a clear economic strategy was emphasized by finance minister Count Johann Ludwig Graf Schwerin von Krosigk, who was convinced that immediate actions were necessary.
However, Hitler’s economic acumen was notably rudimentary. He erroneously attributed Germany’s economic troubles primarily to the Jewish community. Gottfried Feder, the Party’s chief economist, was relied upon heavily to design the details of an economic plan. Feder, who had contributed to crafting the unique blend of socialism and intense nationalism inherent in the original 25-point program of this supposed ‘workers’ party’, prioritized tariffs in his vision for the German economy.
Feder asserted that Germans should not be reliant on supplies from foreigners, including ‘Soviet slaves, Chinese coolies, and Negroes.’ He promoted import restrictions as a solution to reviving German economic autonomy. He advocated for a self-sustained system where German laborers and farmers would produce German goods for domestic consumers, keeping German resources safeguarded from international competition.
Despite concerns that such a strategy might incite a trade war – raised by von Neurath who feared the possibility of the cost of imported eggs skyrocketing by 600 percent – Feder’s tariff policies were in line with Hitler’s broader vision of ’emancipating’ the German populace from the constraints of the international economic system. The global economic downturn of 1929 had pulled Germany into a dire situation alongside many other nations. As the chancellor, Hitler’s primary economic responsibility was to avoid exacerbating this crisis.
News about Hitler’s appointment was initially positively received by the German stock market, which showed signs of recovery. However, his ideas about imposing tariffs, repudiating international agreements and confronting the constitutional order sent jitters through the market. It was noted that, although Germany was a net importer of agricultural goods from its European neighbors, those nations were important markets for German crafting industry products.
Restricting trade by implementing tariffs threatened the stability of the German industrial production landscape. This could potentially hinder Germany’s economy and elevate unemployment levels. As Hamm pointed out, the foreign market for Germany’s goods provided employment to about three million workers. A tariff-triggered trade war was the last thing needed by an economy that was slowly starting to stabilize.
Despite these concerns, Hitler failed to comfort the apprehensive economic sectors, asserting that tariffs were unavoidable. He ambitiously proclaimed that German farmers would be rescued from poverty and the unemployment rate would be eradicated entirely within a four-year duration. However, Hitler’s plan for achieving such targets remained poorly defined.
As Hitler took the reins of the German economy as chancellor, he deliberately kept his plans under wraps. Securing a full majority in the impending Reichstag elections scheduled for March 5 was his chief priority. Rohr, an advocate of Hitler’s vision, suggested that raising the prices of commodities scarce in Germany would stimulate local farmers to produce them in abundance.
Rohr posited that tariffs and similar measures could discourage foreign competition, and city dwellers would likely prefer domestically produced goods. He offered ‘Schmalz,’ a variant of lard, as an exemplary product. The proclamation of Hitler’s tariff policies on Friday, February 10, 1933, took analysts by surprise.
The most affected by these sudden tariffs were the Scandinavian countries and the Netherlands. These nations expressed their outrage at the abrupt revocation of their preferred trading status concerning nearly all agricultural commodities and textiles, with observed tariff increases of up to 500% in some cases.
Hitler made a public speech where he criticized the previous governments for their mismanagement that had necessitated a nationwide rebuild. He railed against the ‘lunacy’of international obligations implemented via the Treaty of Versailles and emphasized the need to restore the fundamental rights of the German people.
He underscored the importance of purging corruption from the body politic, transforming public life, revitalizing culture, and improving every sphere of German life. Through his tariff regime, Hitler insinuated that he aimed to revive the dignity and self-sufficiency of the German people.
In his speech, Hitler urged the nation to release their dependence on foreign assistance. He encouraged self-reliance, saying, ‘Never rely on help from abroad or outside our own country, our own people.’ Hitler presented a vision where the fate of the German nation rested in its own hands.
He believed in the power of self-determination and self-reliance. However, only the course of history could reveal how effective Hitler’s economic ideas would ultimately turn out to be in the betterment and ‘liberation’ of the German people from the vices of globalization and international economic systems.
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