Economy and Industry in the Third Reich Quiz

Answer: A critical shortage of foreign currency

All of the above answers are pertinent to some degree. Above all, the diversion of the German manufacturing sector from exportable goods to armaments production, coupled with a focused effort toward economic autonomy caused a precipitous decline in Germany's foreign accounts.

This severely constrained the import of raw materials to feed German industry. In the 1930s exchange control regulations were tightened at frequent intervals.

Answer: Construction of the national "Autobahn" highway system

One of "the little doctor" (Goebbels') greatest propaganda coups. That the perception of millions of previously unemployed men cheerfully building roads exists to this day, is testimony to his mastery of the art of mis-information! In fact, the roadworks never employed more than 10,000 people.

Answer: Siemens AG

Another of IG-Farben's "arms" was Degesch, best known for developing the cyanide based pesticide "Zyklon B", later to be used as poison gas at some death camps in the Holocaust.

Answer: Junkers AG

Hugo Junkers was arrested on charges of treason on 17 October 1933.

QUOTE "It has sometimes been suggested that Hugo Junker's expropriation was due to his interest in international politics and pacifism. But Junkers was in fact a conservative nationalist, who eagerly embraced the cause of rearmament. His difficulty was simply that he owned the largest aircraft plant in Germany and that Goering and his Secretary of State Erhard Milch were determined to have control of it."
Adam Tooze: "The Wages of Destruction", p. 126.

Answer: It produced nothing during the course of the war.

Although it never produced any Buna during WWII, largely because of the USAAF bombings, the facility was a significant producer of methanol (15% of all production by the end of 1944). Methanol was a prominent factor in the production of ammunition propellants, rocket fuels and aviation gasoline. I know the question is a little misleading; I wrote it this way to catch anyone that relies on Googling up a "Wikipedia" solution!

Answer: Replaced Hjalmar Schacht as head of the Reichsbank in 1939

Although he absolutely lacked qualifications for the job, his political connections placed him in this critical position. He had previously held the post of Secretary of State in Goebbel's Propaganda Ministry!

Answer: Plan Z (construction of a battle fleet)

Although the Ju-88 enjoyed pride of place in the RLM's production scheme, the Kriegsmarine received (by far) the largest allocation of raw matériels and industrial capacity in 1939. Huge sums (and millions of tons of steel) were consumed by the construction and modernization of the Reich's shipyards. Following the western declaration of war, Plan Z was shelved, however these facilities would later become crucial in the vast expansion of the U-Boat arm in 1941.

Answer: The acquisition of the country's foreign currency holdings

1937 had been a disastrous year for the Reich; the complete collapse of her foreign currency reserves (brought on by a variety of both internal and external factors) had forced a significant reduction upon the armaments program. Without this injection of capital, the regime might have collapsed! BTW, the Messerschmitt facility at Wiener Neustadt was built following the Anschluss!

Answer: Striking before the USA could enter the war

Hitler was well aware of the industrial mobilization that was underway in the USA and also realized that they would soon enter the war. With the Royal Navy's blockade of imports to continental Europe, there was only one place to acquire the resources he would need to face the coming nightmare, and that was the Soviet Union.

Answer: The transportation network was inadequate

The Deutsche Reichsbahn had been devastated by the prioritizing of armaments in the 1930s and despite large scale requisitioning from occupied territories and later crash programs to improve capacity, was wholly inadequate for the tasks that were asked of it.

When the combined bombing offensive "hit its stride" in 1944, the situation grew far worse. For want of coal imports from Germany, the huge foundries and ore mines of Belgium and France sat largely idle. The same can be said for the aluminum smelters (for want of coal fired electricity) and the armament factories (for want of steel and aluminum!).

The Reichsbahn lacked the ability to move the millions of tons of coal that were readily available in the Ruhr, Saar, and Silesia to these facilities. Conversely, the skilled labor was moved to Germany!