A. The Nazi economy can continue to run only as long as the war lasts. This is the economic compulsion on Hitler to go on fighting. The Nazi economy is one of scarcity. There are not enough workers, since most able-bodied men are in the army; not enough food, or clothing, or fuel, or manufactured articles. Everybody not in the armed forces has to work very hard, very long hours in order to feed the colossal war machine and produce the minimum necessary for the civilians to subsist. Scarcity would normally shove prices upward; but not in the Nazi economy where the Terror makes price control really work. The Gestapo is a more potent backing for the currency than gold. The workings of a totalitarian economy seem queer to us only because we continue to think of Adam Smith’s “economic man,” and because we still believe that man will always act freely in accord with the law of supply and demand. But man under the Nazis is not free, does not act according to the law of supply and demand but according to the Nazi law. This compulsion by Terror makes a different kind of economic unit of him; our economic laws do not apply to him any more. In our bourgeois society when civil law condemns a man to go hungry, appetite is likely to make him break the law. In the totalitarian state the punishments of the concentration camp subdue almost every impulse to rebel. For foreign trade the Nazis use an infinitely flexible, complex system of barter, often three-way. They confidently assert they have outgrown the use of gold; although one of the reasons Walther Darre advanced for a Nazi conquest of America was to lay hands on the American gold reserve at Fort Knox. The Nazis have demonstrated that they can do without gold, but this is no proof that gold is not more convenient than barter; it is proof only that anything can be used for money as long as the people believe in it, by natural inclination or by compulsion--wampum, cows, brass, paper, or the muzzle of a Gestapo pistol. It is one of our commonest fallacies to believe that financial considerations affect very much the beginning or the middle or the end of a war. Can you recall any war that had to stop because one side ran out of money? In wartime a nation becomes a collective and money a mere bookkeeping item. Only after the war when accounts are presented, does bankruptcy become real. Hitler inherited a bankrupt, bourgeois, peacetime economy and turned it overnight, from the moment he came to power in 1933, into a wartime economy. Real peace would mean the total collapse of Hitler’s totalitarian economic machine. Q. _Why do the Nazis call theirs the Third Reich?_