Bernd 07/18/2019 (Thu) 02:29:14 No.28067 del
Capital
A common interpretation of the Nazi regime, long espoused by the KPD and SPD, is that it was a “dictatorship of the bosses”. This has some truth: industrialists gained more with the new order than their workers. But the NSDAP was not put in power by the industrialists, ruled in its own benefit rather than theirs and made many decisions against their will.
As mentioned, the forces behind Hitler’s rise were some nationalist politicians and agricultural and military interests, not the business class. Several industrialists funded Hitler after a meeting on February 1933, but key magnates were missing and the rest had nothing to say or discuss: Hitler just described what he was about to do, argued why it would benefit them and requested their monetary support.
It is worth noting that IG Farben, a name now immediately associated with the regime, was a supporter of Stresemann’s diplomacy. The German industrial class endorsed internationalism and free trade and was satisfied by the Weimar Republic in this regard. The Reich would not please them with its import and raw materials restrictions, export levy and severe expansion of bureaucratic burdens.

What the regime could satisfy was their conservative internal agenda. Industrialists were anti-communist, wished to run their factories as they saw fit and despised the Weimar Republic’s welfare state and strong state unions. Hitler did not disappoint: as part of his seizure of power (Machtergreifung), communists and social democrats were wiped out of the political scene, unions were dismantled and a state of labour demobilization achieved. Bargaining power shifted towards employers and this was cemented by the national labour law of 1934. Firms were free to manage their internal affairs. The concepts of Fuehrertum and Unternehmertum (entrepreneurial leadership) blended well.
This doesn’t mean there wasn’t any programme for employees. Regional trustees of labour (Treuhaender der Arbeit) were set up to mediate workplace conflicts. The NSDAP had its own labour movement, the NSBO, but as it was too radical it got sidelined. What gained prominence was Robert Ley’s German Labour Front (DAF), a large, self-supporting organization like the RNS. It was distinct from the Labour Ministry. The DAF ran the famous Kraft durch Freude, took measures to improve working conditions and was part of the funding for programs such as what would become the VW Beetle. I’ll write of the Beetle and living standards in general later.

Wages were suppressed at their 1933 level, with any increases negotiated through the trustees. This seems like a strongly pro-business move as 1933 wages were lower than pre-Depression values, but prices, too, had lowered and the Depression wasn’t a boon for businessmen. Prices, too, were eventually suppressed, but as demand rose they grew faster than wages. Combined with the absence of foreign competition enforced by the import system, firms made healthy profits. Worker incomes also increased but not as much.
Rather than personal consumption, the profits were mostly accumulated and reinvested. The Reich sought to direct household savings to banks and then to its own funding, while industries would fund their expansion with their own profits. Shareholders were forbidden from receiving more than 6% of the capital, leading to companies piling up massive reserves. And the Reichsbank’s oversight expanded while new legislation limited the provision of loans. Companies were thus obstructed from the banks and led to use the reserves for their investment.