In the first six months of Hitler’s government, however, this recovery in the business sector was offset by a severe contraction in the real value of household consumption. And even in 1934, when one might have expected the recovery in the labour market to have powerfully stimulated household consumption –the famous ‘knock-on effect’ from work creation expenditure predicted by Keynesians–it in fact made no more than a modest contribution to the progress of the overall economy.
