And Do you believe Germany was a Capitalist country?...
Nazi Germany was the introduction of price and wage controls in 1936 to pay for the vast increase in (government spending) required by its (programs of public works, subsidies,) and rearmament.
Which lead to shortages which then lead to them (imposing rationing.) Which lead to black markets and penalties. But the mere existence of such penalties is not enough. So the government must develop an army of spies and secret informers. For example, the government must make a storekeeper and his customer fearful that if they engage in a black-market transaction, some other customer in the store will report them. (SOUND FAMILIAR)
In sum, therefore, the requirements merely of enforcing price-control regulations is the adoption of essential features of a totalitarian state, namely, the establishment of the category of "economic crimes," in which the peaceful pursuit of material self-interest is treated as a criminal offense, and the establishment of a totalitarian police apparatus replete with spies and informers and the power of arbitrary arrest and imprisonment.
The bureaucratization of the economy necessarily followed suit. Walther Funk, who replaced Walther Schacht as minister of economics in 1937, admitted that "official communications now make up more than one half of a German Manufacturer's entire correspondence" and that "Germany's export trade involves 40,000 separate transactions daily; yet for a single transaction as many as forty different forms must be filled out."
Businessmen and entrepreneurs were smothered by red tape, (were told by the state what they could produce and how much and at what price,) burdened by taxation, and were forced to make "special contributions" to the party. Corporations below a capitalization of $40,000 were dissolved and the founding of any below a capitalization of $2,000,000 was forbidden, which wiped out a fifth of all German businesses.
