I was reading about cash and carry, which stated that the Germans had no funds for their war effort. I further understand that the Nazis had a managed economy. Why was the German managed economy more successful than the USSR's managed economy of the 1970s and 80s? How did the Germans keep up in research, resource production and manufacturing for so long? Why was their managed economy successful in bringing them out of the Great Depression so much sooner than the US?
The Nazis did not nationalize all off industry; now they forced Jews to sell their businesses for peanuts to non-Jewish owners, under the policy of Aryanization/Arisierung - that was in 1938.
However they placed limited on what owners could do with their property, effectively the nazi state managed an increasing part of the economy - this tendency began in 1936 (the Nazi's had a four year plan between 1936-40); from 1939 this the economy switched to war economy and between 1942-45 most of the economy was managed directly by the state.
For instance farmers would be told what they should plant (they also did price fixing), and factories would be told what to produce; however the old manager was still in charge, provided he was not Jewish.
Much of the free market was gradually abolished; by 1936 prices and salaries were fixed; the central bank lost its independence; etc.
Much of the prewar years was based on deficit spending; actually the Bruehning government started this, but because of Versaille/Young plan he was not allowed to finance these measure by inflation. The measures were efficient at stopping unemployment; however the planning body was a mess of different interest and priorities, the office of the four year plan (Goehring) would quarrel with leader of war economy (Schacht) vs. Wehrmacht officials, etc.
Also deficit spending had the result that there were no currency reserves left by 1939. So it is correct to say that eventually the business plan of the Nazi system was war, also planning went for war in 1939; the second four year plan would have ended early in 1940, the object of the plan was to create a self sufficient economy/decrease dependence on imported raw materials and to prepare for war.
"Deutsche Wirtschaft und Wirtschaftspolitik 1914 - 1945" Prof. Dr. Rainer Goemmel