CosmicScientist wrote:I thought Germany created conflict to ignore their economic crash? Or was that created an economic crash by gearing up for the conflict...
Arguably, both! But primarily Hitler got Germany off the ground by doing both lots of civil works, borrowing money from other nations like crazy and releasing TONS of government bonds (Mefo bills). End result of that was, however, that by about 1940's German economy would have collapsed, primarily due to having to actually pay out these loans and the fact that almost total lack of unemployment (there was some, despite official metrics - they played with statistics, and said certain kinds of unemployment didn't qualify) was mostly due to lots of jobs supporting the military. Had no war started, growing costs of military support would have been quite problematic.
By declaring war in 1939, Hitler effectively nullified money owed to international bankers and created war-time economy, where expectations were quite a bit lower (we are in a war, stop complaining!). This also allowed them to either nullify or postpone payment of actual loans owned nationally, and, later, provided them with LOADS of what was pretty much slave labour.
Now, the actual economic ideas behind Mefo bills and certain other economic tricks are in many places sound - Mefo bills were a method of running a deficit greater than one permitted by the Versailles Treaty, and they bypassed interest rate limit imposed by the Treaty. Moreover, large influx of money into what was basically an economy in it's shambles did help. Additionally, as mentioned above, setting up the state-funded Reinhardt Program (I shit you not, that is a real name) helped employ unskilled workers greatly by having them work on waterways, autobahns and railroads. This was, logically, followed by rapid rise in production of cars and other ways of personal transportation, which helped hide expansions made to the army.