Quote:
Originally Posted by microbet
While it's true that finance capitalism in the late 30s wasn't quite where it is today, it had no problem with Nazis. IBM happily sold machines to count the number of consumers being incinerated and international banks had no problem with their deposits.
No question that people are amoral, or immoral, and will continue to trade with and do business in bad regimes.
But capital flight from Nazi Germany was a real thing:
https://en.wikipedia.org/wiki/Reich_Flight_Tax
Germany had to create a big tax to prevent it, because it was common. Obviously of Jews and the persecuted fleeing and trying to take their money. But some businesses and other wealthy as well, who saw the writing on the wall and didn't want to pay for total war and Germany rearmament. In addition, the Germans lost money/assets AND human capital (e.g., Germany lots of smart people, like Einstein).
And the Nazis and their funders and business partners had to launder tons of money through Switzerland to get the transactions done, partly because the statutory environment in the rest of the west made (eventually) investments in Germany illegal.
None of that is to celebrate the inherent morality of capitalism, but simply that:
1. lots of people and capital did flee Germany
2. it was harder for people to invest in Germany due to popular and legislative pressure outside of Germany
Capital is like water and found its way in and out of Germany but it wasn't a free trade free-for-all the way the modern economy is. And that's partly because of the aggression and brutality that was part and parcel of a fascist regime, lots of people did lose the appetite to trade with them. And lots of people and money fled. The markets still functioned in Germany through most of the war, but the environment
was harder and certainly not ideal for capital.
No question, though, on perhaps the larger point: capitalists would much rather deal with fascists than socialists.
Last edited by DVaut1; 07-07-2017 at 10:46 AM.