Return to Fascism and Communism/Socialism

Through the agency of three new guilds (the Food Estate, the Estate of Trade and Industry, and the Labor Front), the government assumed control of every group of producers and consumers in the country. In accordance with the method of “German socialism,” the facade of a market economy was retained. All prices, wages, and interest rates, however, were “fixed by the central authority. They [were] prices, wages, and interest rates in appearance only; in reality they [were] merely determinations of quantity relations in the government’s orders . . . . This is socialism in the outward guise of capitalism.”

The nation’s businessmen retained the responsibility to produce and suffered the losses attendant on failure. The state determined the purpose and conditions of their production, and reaped the benefits; directly or indirectly, it expropriated all profits. “The time is past,” explained the Nazi Minister of Economics, “when the notion of economic self-seeking and unrestricted use of profits made can be allowed to dominate . . . . The economic system must serve the nation.”

“What a dummkopf I was!” cried steel baron Fritz Thyssen, an early Nazi supporter, who fled the country . . . .

As to Hitler’s pledges to the poorer groups: the Republic’s social insurance budgets were greatly increased, and a variety of welfare funds, programs, agencies, and policies were introduced or expanded, including special provisions for such items as unemployment relief, workmen’s compensation, health insurance, pensions, Winter Help campaigns for the destitute, the Reich Mothers’ Service for indigent mothers and children, and the National Socialist People’s Welfare organization.

Copyright © 1986 by Harry Binswanger. Introduction copyright © 1986 by Leonard Peikoff. All rights reserved. For information address New American Library.


Excerpts from The Ominous Parallels, by Leonard Peikoff. Copyright © 1982 by Leonard Peikoff. Reprinted with permission of Stein and Day Publishers. Excerpts from The Romantic Manifesto, by Ayn Rand. Copyright © 1971, by The Objectivist. Reprinted with permission of Harper & Row, Publishers, Inc. Excerpts from Atlas Shrugged, copyright © 1957 by Ayn Rand, The Fountainhead, copyright © 1943 by Ayn Rand, and For the New Intellectual, copyright © 1961 by Ayn Rand. Reprinted by permission of the Estate of Ayn Rand. Excerpts from Philosophy: Who Needs It, by Ayn Rand. Copyright © 1982 by Leonard Peikoff, Executor, Estate of Ayn Rand. Reprinted by permission of the Estate of Ayn Rand. Excerpts from “The Philosophy of Objectivism” lecture series. Copyright © 1976 by Leonard Peikoff. Reprinted by permission. Excerpts from Alvin Toffler’s interview with Ayn Rand, which first appeared in Playboy magazine. Copyright © 1964. Reprinted by permission of Alvin Toffler. All rights reserved including the right of reproduction in whole or in part in any form. Used by arrangement with Plume, a member of Penguin Group (USA), Inc.