German World War II Economics: The Holocaust

Nazi gold
Figure 1.--This Jewish man at the Jasenovac concentration camp in Yugoslavia is being forced to remove his gold wedding ring before being killed by the Germans in 1941.

The destruction of the Jews was a major NAZI war aim. As the War turned against the NAZIs, it became the only war goal that Hitler was able to achieve. The Holocaust is usally approached understandably on moral grounds. But there are other dimensions to the Holocaust. And one of those dimensions is economics. What were the economics of the Holocaust to the NAZI war effort? There wre some economic benefits to the NAZIs. One step in the Holocaust was to enpoverish Jews. This was not only a lucrative undetaking, but once destitute the Jews were made even more vulnerable. Confiscating the property of Jews provided valuables that could be used to reward the party faithful or German soldiers and officials during the War. The money and valuables sttollen from the Jews was suposed to go to the Government. Golden and other valuables collected by the SS was deposited in the Reich Bank. Often SA, SS, and other NAZis kept valuables for their own personal use. Some SS men were wen proceuted for this during the war. We have never seen an accounting as to how much loot taken from the Jews was actually used to finance the NAZI war effort. We are not sure if such a calcilation has ever been made. It is clear that the NAZIs desperately needed gold and hard currency. This was not necessary countries they occupied, even austensible allies like Romania where they simply seized the oil and other resouces. This was not possible for unoccupied countries (Portugal, Spain, Sweden, and Switzerland). Critical materials like wolfram and iron ore had to be purchased from those countries. And as German industry was fully committed to the war, goods were not available for export. The NAZIs needed gold or cash. There was, however, a major economic downside to killing Jews. The Germans needed labor for the war effort. As the War went against Germany, every resoinably healthy German male of military age was conscripted. This and the expansion of production required labor. The NAZIs killed about 6 million Jews. This meant roughly about 4 million productive workers (discounting children and the elderly), many with skills that could have been productively utilized. This was an enormously valuable resource and some NAZI officials wanted to utilize it. The Jews trapped in NAZI ghettos were hopeful that the usefulness of their labor would save them. Only Hitler could have resolved the competing proposals among his subordinates and made the decesion for murder. The murder of 4 million productive workers was a major detriment to the NAZI war effort. Germany began the War with an industrial capacity far below that of its adversaris. The murder of 6 million Jews, in addition to the barbarity of the act, is one of the ways in which the NAZIs failed to capitalize on the polential industrial strength of the occupied countries.

Seizure of Property

There wre some economic benefits to the NAZIs. One step in the Holocaust was to enpoverish Jews. This was not only a lucrative undetaking, but once destitute the Jews were made even more vulnerable. Confiscating the property of Jews provided valuables that could be used to reward the party faithful or German soldiers and officials during the War. The money and valuables sttollen from the Jews was suposed to go to the Government. There was an economic aspect toward the NAZI attacks on German Jews and later the Holocaust. It was extremely profitable. Frau von Schirach describes the daimonds and other jewlry she was offered by a SS officer in the Netherlands. The SS kept careful records. At Auschwitz after the Jews stripped and were driven into concentration camps, their clothing and baggage was sorted at a section of the camp called Canada, because Canada was seen as a place of wonderfyl things. Other camps had similar procedures. One such report for the first 3 months of 1943 described the effects of murdered Jews shipped back to Germany: 94,000 mens watches, 33,000 women's watches, 25,000 fountain pens, 14,000 propelling pencils, and 14,000 pairs of scissors. At the end of the War, Allied troops vame across store houses with these personal affects. The most heart rending was the stacks of thousands of childrens shoes. Hans Frank, the NAZI head of the Government General (occupied Poland) reported to Himmler that mens' watches were being distributed to combat soldiers, U-boat crews, and camp guards. Gold watches and those with precission stones were retained by the SS or turned over the the Reichbank to be melted down. [Gilbert, pp. 500-01.] Many of these watches had engraved inscriptions. Almost ceratinly the men who received them knew of the source. Admiral Doenitz himself is known to have persoannly handed out some of these watches to his U-boat crews. Gold and other valuables collected by the SS were deposited in the Reich Bank. Often SA, SS, and other NAZis kept valuables for their own personal use. Some SS men were wen proceuted for this during the war. We have never seen an accounting as to how much loot taken from the Jews was actually used to finance the NAZI war effort. We are not sure if such a calculation has ever been made.

NAZI Need for Gold and Hard Currency

It is clear that the NAZIs desperately needed gold and hard currency. Hitler launched the War without access to needed raw materials. At first under the terms of the NAZI-Soviet Non-Aggression Pact, the Soviet Union delivered large quantities of needed raw materials. This of course ended when the NAZIs invaded the Soviet Union (June 1941). This was not necessary countries they occupied, even austensible allies like Romania where they simply seized the oil and other resouces. This was not possible for unoccupied countries (Portugal, Spain, Sweden, Switzerland, and Turkey). The Allied naval blockade limited German access to international trade. These countries, however, provided critical raw materials like wolfram and iron ore. But these countries demandedd payment for these shipments. And as German industry was fully committed to the war, goods were not available for export. The NAZIs needed gold or cash.

Labor

There was, however, a major economic downside to killing Jews. The Germans needed labor for the war effort. As the War went against Germany, every resoinably healthy German male of military age was conscripted. This and the expansion of production required labor. The NAZIs killed about 6 million Jews. This meant roughly about 4 million productive workers (discounting children and the elderly), many with skills that could have been productively utilized. This was an enormously valuable resource and some NAZI officials wanted to utilize it. The Jews trapped in NAZI ghettos were hopeful that the usefulness of their labor would save them. Only Hitler could have resolved the competing proposals among his subordinates and made the decesion for murder. The murder of 4 million productive workers was a major detriment to the NAZI war effort. Germany began the War with an industrial capacity far below that of its adversaris. The murder of 6 million Jews, in addition to the barbarity of the act, is one of the ways in which the NAZIs failed to capitalize on the polential industrial strength of the occupied countries.

Sources

Gilbert, Martin. A History of the Twentieth Century Vol. 2 1933-54 (William Morrow and Company, Inc.: New York, 1998), 1050p.







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Created: 4:24 AM 10/4/2008
Last updated: 4:24 AM 10/4/2008