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Financial Vignettes from The Nazi Officer’s Spouse

by Index Investing News
August 25, 2024
in Economy
Reading Time: 2 mins read
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As I stated in my earlier submit on The Nazi Officer’s Spouse, I see economics in every single place. This e-book isn’t any exception.

Listed below are two.

First, some background for the primary one. In April 1941, Edith Hahn Beer was pressured to signal a contract obligating her to go to an asparagus farm in Germany to do slave labor. She and her Jewish fellow staff had been pressured to put on yellow stars always. However within the instances they’d off, they needed to enter city and store for issues. That introduced a dilemma.

She writes:

The police advised us we should write to Vienna for the yellow stars, and that once they arrived, we should put on them always. But when we had executed so, no shopkeeper on the town would have waited on us. So we didn’t put on them. Our supervisors on the farm appeared to care under no circumstances. I  imagine that of their approach they’d started [sic] to need to maintain us content material sufficient to go on obediently working for them, much more than they needed to please the police.

Incentives at work. Financial self-interest on the a part of the supervisors, who had been making an attempt to succeed in their manufacturing quota, overcame obedience to authorities guidelines.

The second is about adjustment to Hitler’s value controls.

The farmers outdoors the town made fortunes from bartering, as a result of folks would carry their most respected furnishings to commerce for some carrots, possibly a slab of bacon, or some recent cheese. Folks joked that the farmers now owned so many Persian rugs that they put them within the cowsheds.

By the best way, I wrote in some element about how this barter continued after the conflict in response to the Allies persevering with to implement Hitler’s value controls. It’s in “German Financial Miracle,” in David R. Henderson, ed., The Concise Encyclopedia of Economics. The barter ended as quickly as the value controls ended–and the German financial miracle commenced.

 



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