Economy of Third Reich was a socialist economy

Sep 2019
Fascist congress of Verona in November 1943 made a document called Manifesto of Verona with 18 points of future program of Republican facists. With this program they returned to the early fascism before it made a pact with Italian monarchy. Now when monarchy was on the side of their enemies and fascists felt liberated by Germans of its influence they became again even more anti-capitalistic then before.

We are interested here mostly in economic points of Manifesto. In point 8 b fascists called for abolishment of capitalism in Italy and for fighting against so called plutocracy in the world. Little family bussiness should remain in private hands but state was setting up prices.

Point 11 says:

In the national economy, everything that comes out of the single interest to enter into the collective interest by size or function belongs to the sphere of action that is proper to the State.
Public services and, as a rule, war fabrications must be managed by the State through parastatals.

Point 12 says:

In each company (industrial, private, parastatal, state) the representatives of the technicians and workers will cooperate intimately - through a direct knowledge of management - to the fair fixing of wages, as well as to the fair distribution of profits between the reserve fund, the fruit to share capital and profit sharing for part of the workers. In some companies this may occur with an extension of the prerogatives of the current factory commissions. In others, replacing the Boards of Directors with Management Boards composed of technicians and workers with a State representative. In others, in the form of a parasindacal cooperative.

This point was later in 1944 applied in before mentioned law of socialisation of factories. Under this law Mussolini bigger factories would be run by workers loyal to fascism or nationalized and smaller would be run by commities were owners would be subordinated to representatives of fascist syndicates and state. Workers in such smaller factories would vote half of the members of commitie which would lead such factory. Leading manager could be named by state.

Point 17 is talking about strickt control of wages and prices and death penalty for speculators on black market. As we said before this is yet another clear demonstration how planned economy is connected with severe repression and big repression apparatus.

In line with the current situation, the Party estimates a salary adjustment for workers through the adoption of national minimums and local reviews, and even more so for small and medium-sized employees both state and private. But because the provision fails ineffective and ultimately harmful to all it is necessary that with cooperative stores, company stores, extension of the tasks of the "Provvida" include, requisition of the shops guilty of infractions and their parastal or cooperative management, so that the result of paying is obtained. This is the only way to contribute to price and currency stability and market recovery. As for the black market, it is asked that speculators - like traitors and defeatists - fall within the jurisdiction of extraordinary courts and are liable to death.



Ad Honorem
Sep 2011
Fascism and Nazism were both totalitarian, but certainly not socialist. The totalitarianism was the common feature with the Stalinist Soviet system, not socialism.

Totalitarianism made both have at least a theoretical preference for national autarky in economic matters, but the Soviets actually largely achieved that through a planned (socialist) economy, will Nazism and Fascism went with state capitalism.
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Sep 2019
@Larrey of course Nazis and fascists were using planned economy too and in the way which they interpreted as beneficial for society and this fits the definition of socialism, state/public control or state/public ownership of ( former ) private property like for the benefit of society . And all communist regimes were also totalitarian with bigger or smaller amount of terror but usually very big amount of it. In Nazi Germany they had even a four year plan for German economy between 1936-40.

Hitler extended to Göring the power to make law simply by publishing decrees, which enabled him to create other plenipotentiaries in overall charge of various industries. Göring constantly expanded the scope of the plan until he became the de facto master of the German economy. The Four Year Plan favoured both the protection of agriculture and the promotion of autarky (economic independence) for Germany. Göring was put in charge of the Four Year Plan at its inception and given plenipotentiary powers. He had complete control over the economy, including the private sector, especially after the Minister of Economics, Hjalmar Schacht, had began to lose favour with Hitler for opposing the growing military expenditures at the expense of civilian economic growth. During the following years, the state, under Göring, began building refineries, aluminium plants, and factories for the development of synthetic materials.

Nazis knew that even German capitalists will probably not like their socialist plan in economy so they used state apparatus to intimidate them:

Fearful of the reaction by industrialists and financiers over the increasing nationalisation of Germany's economy, Hitler's 1936 "Four-Year Plan Memorandum", also called for the Reichstag to enact "A law providing the death penalty for economic sabotage.

You can see from the above mentioned fascist law of socialisation that workers loyal to fascism would run bigger factories or they would be nationalized and smaller would be run by commities were owners would be subordinated to representatives of fascist syndicates and state. Workers in such smaller factories would vote half of the members of commitie which would lead such factory. Leading manager could be named by state. Manifesto of Verona says in point 15 also that the right to an appartment should be guaranteed by the state. The Party enters in its program the creation of a national body for the housing of the people, which, absorbing the existing Institute and broadening its action to the maximum, will provide the house to the families of the workers of each category, through direct construction of new dwellings or gradual redemption of existing ones ( they will stop paying rents ).