National Socialism or Nazism was an ideology developed by a number of Germans, primarily Adolf Hitler. The Nazi Party was its German implementation. The term "national socialism," however, had already been current in German and Austrian politics since the 1890s and did not refer to either Marxian socialism or Nazism.
Many conservatives accuse Hitler of being a leftist, on the grounds that his party was named "National Socialist." But socialism requires worker ownership and control of the means of production. In Nazi Germany, private capitalist individuals owned the means of production, and they in turn were frequently controlled by the Nazi party and state. True socialism does not advocate such economic dictatorship -- it can only be democratic. Hitler's other political beliefs place him almost always on the far right. He advocated racism over racial tolerance, eugenics over freedom of reproduction, merit over equality, competition over cooperation, power politics and militarism over pacifism, dictatorship over democracy, capitalism over Marxism, realism over idealism, nationalism over internationalism, exclusiveness over inclusiveness, common sense over theory or science, pragmatism over principle, and even held friendly relations with the Church.
Nazi Germany is a bitter joke. It was actually a combination of aristocracy and capitalism. Technically, private businessmen owned and controlled the means of production. The Nazi "Charter of Labor" gave employers complete power over their workers. It established the employer as the "leader of the enterprise," and read: "The leader of the enterprise makes the decisions for the employees and laborers in all matters concerning the enterprise." (1)
The employer, however, was subject to the frequent orders of the ruling Nazi elite. After the Nazis took power in 1933, they quickly established a highly controlled war economy under the direction of Dr. Hjalmar Schacht. Like all war economies, it boomed, making Germany the second nation to recover fully from the Great Depression, in 1936. (The first nation was Sweden, in 1934. Following Keynesian-like policies, the Swedish government spent its way out of the Depression, proving that state economic policies can be successful without resorting to dictatorship or war.)
Prior to the Nazi seizure of power in 1933, worker protests had spread all across Germany in response to the Great Depression. During his drive to power, Hitler exploited this social unrest by promising workers to strengthen their labor unions and increase their standard of living. But these were empty promises; privately, he was reassuring wealthy German businessmen that he would crack down on labor once he achieved power.
Once in power, Hitler showed his true colors by promptly breaking all his promises to workers. The Nazis abolished trade unions, collective bargaining and the right to strike. An organization called the "Labor Front" replaced the old trade unions, but it was an instrument of the Nazi party and did not represent workers. According to the law that created it, "Its task is to see that every individual should be able… to perform the maximum of work." Workers would indeed greatly boost their productivity under Nazi rule. But they also became exploited. Between 1932 and 1936, workers wages fell, from 20.4 to 19.5 cents an hour for skilled labor, and from 16.1 to 13 cents an hour for unskilled labor. Yet workers did not protest. This was partly because the Nazis had restored order to the economy, but an even bigger reason was that the Nazis would have cracked down on any protest.
Source(s):
William Shirer, The Rise and Fall of the Third Reich, (New York: Simon & Schuster, 1960), Hitler, quoted in Alan Bullock, Hitler: A Study in Tyranny, abridged edition, (New York: HarperCollins, 1971), p. 228.
Adolf Hitler, Mein Kampf, trans. by Ralph Manheim (Boston: Houghton Mifflin Company, 1962), pp. 393-4.