Geoffrey Sinclair
Staff Sergeant
- 931
- Sep 30, 2021
A lot of the early analysis of the German economy was based on the Wagenfuehr indexes which indicated Germany mobilised late. In fact Germany was heavily mobilised before the war with the Nazis doing major deficit spending and fiddling the books with things like the MEFO loans, but consumer goods remained scarce. In 1940 the German government was spending more on loan repayments and interest than on the war. To build a modern 1930's war machine the Nazis needed oil and lighter metals which meant generating foreign exchange while investing in ways, like synthetic oil and rubber, to create the desired autarky.
The general point was by running the economy as hard as possible to rearm it was very hard to generate foreign exchange. With industry committed to large, secure, government orders there was little capacity or incentive to look overseas for more. German exports were worth 13,483,000 marks in 1929, bottoming at 4,167,000 in 1934, rising to 5,911,000 marks in 1937 before falling again. The Nazis drove hard bargains for raw materials as their price for support in the Spanish civil war. So the economists make the point the occupations of Austria and then Czechoslovakia and the attack on Poland had the lack of foreign exchange as an important driver.
Pre war there were incentives to employ people, which continued into the war, minimal rationalisation of supply, the same component could cost twice as much from different suppliers, little communication of the better ways, the continual interference of the military demanding small changes, then the deliberate cut backs in 1941, which makes the late 1942 increases look better than they should. The fact in things like aircraft the switch to smaller, lighter aircraft means the numbers look better but not if you go by airframe weight. Pre war and early in the war if someone reported a better way of doing things they simply found their quota raised, the state took all the benefit.
Speer helped remove the inefficiencies, aided by the obvious necessity for more production. The economy's resilience was helped by having more factory space and machine tools than were needed, indeed Germany exported many machine tools during the war. In any case there were the tools looted from France etc., these mainly helped the allies, since when the Germans tried to transfer production to the factories in occupied areas many of the key tools were in storage in Germany.
According to Richard Overy the output per head for the arms industry looked like, 1939 100, 1940 87.6, 1941 75.9 (provisional figure), 1942 99.6, 1943 131.6, 1944 160.0 (minimum). The western allies had a large pool of unemployed plus women normally kept out of the work force to fill gaps as they mobilised, Germany did not, giving the predictable result, a reduction in economic efficiency as people were pulled out of their usual jobs and put into the military. Germany went from 1.4 million to 5.6 million the military June 1939 to June 1940, the total civil work force fell by around 3.4 million mostly due to an extra 0.9 million foreign workers. In June 1939 there were 14.6 million working women in Germany, mainly those working on their family farms, in October 1944 that was up to 14.9 million. In millions, employment changes from June 1939 to June 1944, civil: German men -10.3, German women +0.2, foreign/PoW +6.8, military +7.7, there was also a 3.3 million cumulative loss of people to the war, up from 1.7 million in June 1943.
The BMW801 aero engine in 1940 took 5,145 kg of raw materials and 2,400 hours of labour, in 1944 it was 2,790 kg of raw materials and 1,250 hours of labour. Henschel made a 64% saving when building engines between 1939 and 1943, in 1942 Junkers improved Ju88 production efficiency by 30%. In May 1943 each ton of munitions used less than half the iron and steel, a sixth of the aluminium and half the copper compared with 1941. Early raw material allocations were set on an industry wide basis, not product, controls were slack enough that the Messerschmitt organisation made aluminium step ladders for example, there were also lightweight shelters made intended for the troops in the desert.
Remember the German aircraft production figures in 1941 were reduced by the Bf110/Me210 fiasco and the change over to new models. Also while the USSBS says 1940 production was 10,371 only rising to 10,501 in 1941 the number of transports trainers and miscellaneous aircraft fell from 1,373 to 561.
The general point was by running the economy as hard as possible to rearm it was very hard to generate foreign exchange. With industry committed to large, secure, government orders there was little capacity or incentive to look overseas for more. German exports were worth 13,483,000 marks in 1929, bottoming at 4,167,000 in 1934, rising to 5,911,000 marks in 1937 before falling again. The Nazis drove hard bargains for raw materials as their price for support in the Spanish civil war. So the economists make the point the occupations of Austria and then Czechoslovakia and the attack on Poland had the lack of foreign exchange as an important driver.
Pre war there were incentives to employ people, which continued into the war, minimal rationalisation of supply, the same component could cost twice as much from different suppliers, little communication of the better ways, the continual interference of the military demanding small changes, then the deliberate cut backs in 1941, which makes the late 1942 increases look better than they should. The fact in things like aircraft the switch to smaller, lighter aircraft means the numbers look better but not if you go by airframe weight. Pre war and early in the war if someone reported a better way of doing things they simply found their quota raised, the state took all the benefit.
Speer helped remove the inefficiencies, aided by the obvious necessity for more production. The economy's resilience was helped by having more factory space and machine tools than were needed, indeed Germany exported many machine tools during the war. In any case there were the tools looted from France etc., these mainly helped the allies, since when the Germans tried to transfer production to the factories in occupied areas many of the key tools were in storage in Germany.
According to Richard Overy the output per head for the arms industry looked like, 1939 100, 1940 87.6, 1941 75.9 (provisional figure), 1942 99.6, 1943 131.6, 1944 160.0 (minimum). The western allies had a large pool of unemployed plus women normally kept out of the work force to fill gaps as they mobilised, Germany did not, giving the predictable result, a reduction in economic efficiency as people were pulled out of their usual jobs and put into the military. Germany went from 1.4 million to 5.6 million the military June 1939 to June 1940, the total civil work force fell by around 3.4 million mostly due to an extra 0.9 million foreign workers. In June 1939 there were 14.6 million working women in Germany, mainly those working on their family farms, in October 1944 that was up to 14.9 million. In millions, employment changes from June 1939 to June 1944, civil: German men -10.3, German women +0.2, foreign/PoW +6.8, military +7.7, there was also a 3.3 million cumulative loss of people to the war, up from 1.7 million in June 1943.
The BMW801 aero engine in 1940 took 5,145 kg of raw materials and 2,400 hours of labour, in 1944 it was 2,790 kg of raw materials and 1,250 hours of labour. Henschel made a 64% saving when building engines between 1939 and 1943, in 1942 Junkers improved Ju88 production efficiency by 30%. In May 1943 each ton of munitions used less than half the iron and steel, a sixth of the aluminium and half the copper compared with 1941. Early raw material allocations were set on an industry wide basis, not product, controls were slack enough that the Messerschmitt organisation made aluminium step ladders for example, there were also lightweight shelters made intended for the troops in the desert.
Remember the German aircraft production figures in 1941 were reduced by the Bf110/Me210 fiasco and the change over to new models. Also while the USSBS says 1940 production was 10,371 only rising to 10,501 in 1941 the number of transports trainers and miscellaneous aircraft fell from 1,373 to 561.