The Nazi Fiscal Cliff: Unsustainable Financial Practices before World War II

The Nazis inherited a weak economy, withered by the Great Depression and periods of hyperinflation, when they took power in 1933. Over the next six years, primarily through a military buildup, the Nazi economy grew like none other in the world. This paper traces the methods the Nazis used to finance this economic rebound. Through an analysis of secret government documents, Nuremburg witness statements, and the latest scholarly research, this paper posits that the methods used to finance the economy were unsustainable. Further, it finds that by September 1939, the economy was in a state of dangerous disarray