Abstract
The chief goal of the Four-Year Plan was the central coordination,
production, and allocation of raw materials needed for war. With its
implementation in 1936, state intervention in business and industry
escalated. Under Hermann Göring’s direction, private enterprises were
supposed to be forced to adapt to the needs of “restoring Germany’s
capacity for self-defense,” often against every rule of economics. For
example, in a discussion with top representatives of heavy industry on
March 17, 1937, Göring demanded that they halt their profitable exports
of raw materials and channel them into German rearmament instead.
Furthermore, he demanded a general increase in the unprofitable
exploitation of domestic iron ores. He finally reacted to
industrialists’ negative attitude by founding the state-owned “Reich
Works Hermann Göring” in July 1937. Financed by state monies, this
company competed with private enterprises by purchasing overly expensive
ores, driving up the price of German iron, and thus making its sale
abroad more difficult. Additionally, Göring’s company took over a large
number of private firms in the heavy industry sector, including the
armaments concern shown in the photo, Rhine Metal-Borsig. By 1944, the
“Reich Works Hermann Göring,” the most important example of the National
Socialist planned economy, had become the largest steel company in
Europe.