“The downside for Nazi Germany began almost as soon as it started. The regime shifted national resources towards armaments as soon as the Enabling Law of March 1933 gave him the power to rule by decree. More spending on the military left fewer resources for the consumer economy. As more and more men, steel and coal went into military output, non-military output declined, bringing down standards of living. The real wealth of the German people began to fall, almost immediately. At first, the decline was modest. Economists didn’t notice it. They focused instead on rapid industrial growth, falling unemployment, and belching smokestacks.”
http://dailyreckoning.com/downside-after-the-returns-stop-diminishing/
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