Figure 1.--Coal was Germany's one main natural resource. Shortages developed during World War II as Germany had to use some of its coal to keep the economies in Allies running. After the War. shortages cgot more severe as the transport system was destroyed and econimic activity disrupted. The press caption read, "Unaware ofthe photographer's presence, German women and children steal coal off an American truck in a Berlin street." Coal was needed to heat homes during the winter. The photograph was dated December 19, 1947. .

Germany before the War was the greatest economic power in Europe. As a result of Hitler's Nero Order order, the fighting when the war entered the Reich, and the Allied strategic bombing campaign, Germany's great industrial cities were reduced to mounds of smoldering rubble. Interestingly, most of the destruction occurred in the final year of the War when Allied bombing reached unprecedented levels of destruction. Germany was not only incapable of making war, but was no longer capable of industrial production. By the time of the NAZI surrender (May 1945), the German economy had collapsed. The Germans woild describe thiss as 'Stunde Null' (Zero Hour). The Allies at first planned to restrict German industrial recovery. The American Morgenthau Plan envisioned the de-industrialization of Germany. It was never adopted primarily because of the beligerant Soviet policies asfopt by Stalin. The War resulted in a level of destruction unlike any in modern war. This was in sharp contrast to World War I during which there was virtually no physical destruction within Germany. The World War I was almost entirely fought outside German borders. World War II could not be more different. The NAZIs had ran the economy into the ground even before the Allies entered the Reich. Industrial production as only one-third of pre-War levels. What little was not destroyed what subject to reparations. The Soviets were especially intent on reparation of physical industrial plant. Years of rationing. corruption, and misallocation did huge damage. German industry was virtually obliterated. Not only were industrial factories destroyed, but hospitals, schools, libraries and public buildings bomb craters or heavily damaged. Some 20 percent of the housing stock was destroyed and an unknown percentage damaged to varying degrees. German industry was dependent on importing most needed raw materials. And Germany did not have the finances needed to support importing needed resources. The only major resource Germany had beyond its people was coal. And even coal was in extremely short supply, primarily because because of the destruction of the country's transport system. While the bombing focused primarily on German cities where industry was located, agricultural output was also impacted. Farm machinery and inputs like seed, fertilizer, and livestock were in short supply. Harvests plummeted to nearly half of pre-War levels. And Germany was not self sufficient in food production even before the War. Without Allied (mostly American) foodshipments, the German people would have strved. (The reverse of the policy the Germns imposed on the countries they occuped.) What little that was produced could not be transported to markets as the German transportation system had been destroyed, including the Reichbahn, Germany's once impressive rail system. With industry destroyed, few Germans could find jobs and without jobs Germans could not afford to but even basic necessities. The NAZI currency, the Reichsmark, had lost its value. Germans had to barter to exchange value. Everyday items became a makeshift currency. Cigarettes were specially important. War time rationing had to be continues, especially food.

Created: 2:28 AM 9/24/2025
Last updated: 2:28 AM 9/24/2025