chapter 39 A letter to a Jewish family, Time to review the books

Schneeberg March 16, 1937

Hello everyone,

I just arrived at my new workplace in . I will start working tomorrow morning as a miner at the old silver mine next to the camp. The first day of my five years to win an exit visa and a ticket to New York.

The camp is just a barracks for us workers, a dining room with an attached bathroom area. But to our relief, there is a small synagogue on site, and we were even aloud to perform rituals to make the kitchen kosher. Rabbi Lebel will guide us in prayer although the rest of the time he will be a miner like us.

Now I hope that you too had a pleasant trip to and that you enjoy a similarly good reception.

your beloved son,

Jacob Altschuler

***I finally came to the conclusion that the only way I could include the horrors of the Holocaust in my timeline was to write it from the perspective of the victims. Then, occasionally, Jacob will show up and it should be no surprise when things get worse.***

*OTL figures are to facilitate comparison for readers

Berlin, March 16, 1937

Lutz von Krosigk (LK): Adolf, as requested, we have compiled the preliminary finances of the Reich and are prepared to inform you about the state of the economy and treasury. In particular. I'll start with an overview of the finances, then Hjalmar will expand on the current economic circumstances.

So to start, as you can see from this chart, we have collected just under 12 billion Reichsmark in taxes and other revenue over the last year. More than tripling the income of fiscal year 1934. With one billion Marks earned each; the sale of mining licenses, the addition of Austrian taxpayers and the increase in the value added tax rate. The remainder of the increase of some 5 billion is due to the achievement of full employment during the year in the original Reich.(1)

The projected revenue for the 1937 budget is just shy of 20 billion marks, a further increase of about 8 billion. About RM3 billion originating from having full employment extending to Ostmark and requesting a full year. The remaining billions will come from increased income tax collections as taxpayers migrate to higher tax brackets.

Hjalmar Schacht (HS): As we have discussed, we expect that the increase in the consumption tax will force the consumption rate to decline.

AH: Well, we should keep that rate as low as possible and use our disposable income to strengthen the nation, but continue Lutz.

LK: As you can see in this second chart, deficit spending will continue for the foreseeable future, we are confident that we will be able to raise an additional 5 billion in funds. 2 billion on the free market and about 4.65 billion through Mefo letters and we will return approximately 1.7 billion in 'work bills'. Leaving us about 14 billion in debt by the end of the next budget year.(2)

This will give us a total budget of 25 billion marks for the 1937 budget. Allowing us to invest 4 billion in infrastructure to continue road and rail expansion plans with about 2 billion for general expenses. Now, like last year, the majority of these funds will be used to fund new universities and research centers. Leaving a mark of almost 19 billion for the Wehrmacht.

This will end the '37 budget year with just under a billion marks as cash on hand in the treasury. In addition to marks, we will also hold an estimated 8 billion marks in pounds and dollars, mainly in accounts in London and New York. And finally, the new trading accounts should have a total amount of approximately two billion marks in smaller European currencies, however, the last number is subject to change.

So now Hjalmar will take over to discuss the state of the economy.

HS: Currently, the economy is accelerating at a pace unprecedented in history and, with the addition of the Ostmark, our GDP has exceeded 100 billion marks(3) over the last year. This makes all comparison numbers with previous years lose meaning. And thanks to the current increase in domestic and foreign investment in our economy, we should see a continued boom in the years to come. We predict that in '37 alone the economy will expand by an additional 25% or more.

Furthermore, not three years ago we were seeing unemployment figures in the range of seven million, eight if the Ostmark is included. They have now been reduced to mere handfuls across the country, consisting mainly of middle-of-the-road jobs. But even better is the fact that the workforce has become much more productive, we are seeing a jump of approximately 20% per employee(4). An increase in efficiency that is currently mainly due to advances in the Agricultural and Transportation sectors. Although mining and chemistry are catching up quickly.

This is all good, as the average net salary has also increased by 18%(5), and if it were not for the massive increase in supply, we would be facing strong inflationary pressure. That being said, we must continue with the programs to reduce the consumption rate of the Volk. Distraction tactics like the Patriot Investment Fund and spending delays caused by the Strength through Joy savings scheme are the only thing keeping our economy from spiraling out of control.

Besides inflation, the main problem facing the economy is finding additional labor. Managers across the Reich are rapidly addressing the underutilization of labor employed in industry, the days of using a group of employees to repaint a fence or window sill just so you don't have to fire them are gone. back. Even the release of agricultural labor for industrial sectors by replacing them with tractors is rapidly reaching its maximum, both because of the need to train new workers and because of the number of tractors we can produce.

This means that homecoming and guest worker immigration programs are vital if we are to continue the current growth rate. That or decrease the size of the military, which would be extremely undesirable due to other factors. The best thing we can do for the economy now is to acquire more labor, for example by reintegrating some of the German territories to the east. (6) AH:

By your ears alone, you can assume that several efforts are being made to reclaim the area. like the Sudetenland and Danzig. But since they depend on factors beyond our control, it would be best to assume that they remain lost to us.

HS: Understood, however, I'm starting some low-level contingency planning, just in case.

(1) This also happened in OTL but a few months later.

(2) This is like OTL, the availability of funds that can be loaned to the government is a bit difficult to predict with my models.

(3) OTL 81 billion, add 10 for Austria proper, 5 for increasing consumer/investor confidence and another 5 for SI interference.

(4) OTL about 13%

(5) OTL 15%

(6) This is a major change for the "business faction", but as labor becomes the limiting factor in economic growth and increased profits, it is a natural evolution.