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Simply, it was a directed economy in which consumer goods were reduced in favor of expanded production in key industries, mainly military hardware. And as the Germans conquered regions such as Poland and the Ukraine, they exploited the raw materials there for German factories. To some extent, slave labor was also able to enhance the output of some industries.

Despite the economic and political crises during the inter-war years (1919-1938), Germany was a very large country and maintained a vast amount of key resources in material and labor. By the time Adolf Hitler was given control in 1933, some recovery had already been made. The suppression of communists, and the renewed nationalism under the one-party Nazi rule, both enabled a tremendous expansion of industries, which invariably included development and production of military hardware. There were no effective financial, managerial, or union impediments to growth.

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Germany used slave labor culled from different countries they occupied. The German government supplied farmers with laborers, and during air raids would use captured prisoners to clear streets and homes of debris. Carl

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Q: How did Germany manage to increase their production during World War 2?
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