factories people owned did not matter when they had consented to a master they could no longer overthrow. “The decisive factor is that the State through the party controls them whether they are owners or workers. Do you understand, all this no longer means anything. Our socialism reaches much deeper. It does not change the external order of things, but it orders solely the relationship of man to the State…. Then what does property and income count for? Why should we need to socialize the banks and the factories? We are socializing the people.”24

Hitler’s pragmatism was remarkably effective in overcoming mass unemployment. He did not doubt that both the fate of the regime and his personal prestige hung on this question. It was all important that the condition of the suffering population be significantly improved. He had been walking the high wire propagandistically for so long that there was no way to make good his promises except by some such miracle. Moreover, it was also the only way he could pacify the Old Fighters who were grumbling at his many compromises and adjustments, which in their view amounted to a “betrayal of the revolution.”

Hitler grasped the psychological aspect of the Depression as none of the Weimar politicians had done. Undoubtedly, the gradual recovery of the world economy also came to his aid. But more important, at least as far as the tempo was concerned, was his perception that gloom, apathy, and slump sprang from deep-seated, pessimistic doubts regarding the world order and that the masses required stimulus just as much as did the economy. His many comments friendly to business and his consistent efforts to keep the economy out of the revolutionary turmoil of the early phase were primarily aimed at generating a mood of confidence. Most of the measures initiated during the early months were introduced less for their economic rationale than for the sake of making a vigorous gesture. In a number of cases Hitler fell back on older plans, such as the “program for the immediate provision of work,” which belonged to the Schleicher regime. Other projects that were now spectacularly launched also came out of the Weimar files; democratic red tape, timidity about decisions, or the resignation prevalent during the Weimar years had kept them dormant. For example, the autobahn project, so closely linked with the regime’s reputation from the very outset, had been under discussion for years but had never been begun.

When Dr. Hans Luther, president of the Reichsbank, clung to his deflationary tight-credit policy and refused to make large sums available for providing work, Hitler forced him to resign. To the anger of many of his followers, he replaced Luther by the “notorious capitalist” Hjalmar Schacht. With his eagerness for results and his absence of scruples, Hitler cranked up production by a variety of impressive measures. In his May 1 speech he appealed to the “entire German people,” declaring that “every individual… every entrepreneur, every homeowner, every businessman,” had the obligation to provide for work in a sustained community effort. The government, for its part, would take action by means of a program Hitler described as “gigantic”—one of his favorite words. “We will clear all obstacles and begin the task grandly,” he promised. Government contracts for housing projects and roads together with a system of public and private stimuli to investment, loans, tax concessions and subsidies, promoted an upswing in the economy. And along with it all went more and more words, slogans, proclamations. They contributed to the success of the effort and gave surprising significance to Hitler’s epigram: “Great liars are also great wizards.”

The establishment and extension of the initially voluntary Labor Service was also part of the psychology of generating confidence. The Labor Service was useful, to be sure, as a catchment basin for unemployed youth. But in addition it gave vivid expression to the regime’s constructive optimism. Reclaiming swamps and wetlands, reforestation, building autobahns and regulating streams became visible and inspiring signs of accomplishment and faith in the future. At the same time, the organization served to overcome class barriers—especially after it became compulsory in 1935—and to improve the status of manual laborers.

All these factors operated together, and by 1934 a shortage of technicians was noted, although there were still 3 million unemployed. Two years later full employment was attained.

The initial upswing also opened the way for considerable effective action in the realm of social politics. To be sure, strikes were banned and a single state-controlled union was created, the German Labor Front. But for fear of seeming reactionary, the regime attempted to cover up such manifestations of authoritarianism by ostentatious prolabor activities. Thus vast institutions were created to organize the people, to provide them with vacation travel, sports festivals, art shows, dances, and training courses. These organizations—Kraft durch Freude (“Strength Through Joy”) and Schonheit der Arbeit (“Beauty of Work”)—served their purpose, and at the same time superintended and placated the masses.

There was labor opposition, to be sure. Some lists giving the results of factory elections held in April, 1935, have been discovered; these reveal that in some plants at this time no more than 30 per cent to 40 per cent of the personnel voted for the Nazi unity list, and thus for the new order. But in 1932 the NSBO,. the Nazi factory organization, received on the average only 4 per cent of the votes. Even such a leftist historian as Arthur Rosenberg had to admit that Nazism realized certain unfulfilled demands of the democratic revolution. In the long run, at any rate, the regime’s stubborn, wide-ranging wooing of the workers had its effect, especially since many of them saw the difference between present and past “less in lost rights than in regained employment.”25

Employment was indeed the key factor for the success of the Third Reich’s rigorous social policies. The loss of freedom and of social autonomy, the strict supervision, the distinctly smaller share of labor in the growing national product—all this did not greatly bother the workers. Ideological slogans persuaded them even less than the bourgeoisie. What really mattered was the feeling of restored social security after traumatic years of anxiety and gloom. This feeling dissolved the initially widespread tendencies toward opposition. It roused the determination to produce and helped enormously to create that image of social contentment to which the new rulers could proudly point: class struggle was not only tabooed and banned; it had also been largely abandoned. The regime insisted that it was not the rule of one social class above all others, and by granting everyone opportunities to rise, it in fact demonstrated class neutrality. What class consciousness remained was stamped out by the political pressures to which businessmen, blue- and white-collar workers, and farmers were subjected.

These measures did indeed break through the old, petrified social structures. They tangibly improved the material condition of much of the population. Yet no really new sociopolitical concepts can be detected underlying these programs. Hitler’s only ideas were concerned with the seizure of power; he had no vision of the new state or the new society. Fundamentally he did not want change; he wanted only to put his hand on the wheel. Just as the party had served him as an instrument for conquering Germany, Germany was now to serve him as an instrument “for pushing open the gate to lasting domination of the world.” Hitler’s domestic policy must be seen as an adjunct to his foreign policy.

In addition to his use of the available social energies, he employed the dynamism of nationalistic motivation to mobilize the masses. The onetime victors in the World War had already conceded German equality in principle, but in reality she had remained the pariah nation. France, above all, deeply disturbed by Hitler’s accession to power, was unrelenting, whereas England showed some discomfort at the contradictions into which she was being forced by her former ally. During the first year and a half of his rule Hitler exploited France’s fears, England’s scruples, and Germany’s indignation in a masterful manner. He succeeded in overturning the entire European system of alliances, in uniting Germany, and in preparing the ground for his Lebensraum policy.

The initial situation was by no means favorable to his ambitions. The terroristic aspects of his coming to power, the beatings and killings, above all, the persecution of a single segment of society solely because of their origin, ran counter to all civilized views of political conduct and produced a grim image of what was going on in Germany. There was the famous Maundy Thursday debate in the House of Commons, when Sir Austen Chamberlain, the former Foreign Secretary, declared that this was not the time to consider any further revision of the Versailles Treaty. He spoke of brutality, racial arrogance, and the policy of the iron heel. The slogan “Hitler means war,” so long dismissed as a piece of refugee hysteria, suddenly seemed credible. There were anti-German outbreaks here and there in Europe, and the Polish ambassador went so far as to ask whether France was. prepared to wage a preventive war in order to eliminate the Hitler regime. In the summer of 1933 Germany was almost totally isolated in the sphere of foreign policy.

Given these circumstances, Hitler found it advisable to make placating gestures and to stress continuity with the moderate Weimar policy. Although he despised the personnel of the Foreign Office and occasionally spoke of

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