By early 1934, the focus shifted towards rearmament. By 1935, military expenditures accounted for 73 percent of the government's purchases of goods and services. On 18 October 1936, Hitler named Göring as Plenipotentiary of the Four Year Plan, intended to speed up rearmament. In addition to calling for the rapid construction of steel mills, synthetic rubber plants, and other factories, Göring instituted wage and price controls and restricted the issuance of stock dividends. Large expenditures were made on rearmament in spite of growing deficits. Plans unveiled in late 1938 for massive increases to the navy and air force were impossible to fulfil, as Germany lacked the finances and material resources to build the planned units, as well as the necessary fuel required to keep them running. With the introduction of compulsory military service in 1935, the Reichswehr, which had been limited to 100,000 by the terms of the Versailles Treaty, expanded to 750,000 on active service at the start of World War II, with a million more in the reserve. By January 1939, unemployment was down to 301,800 and it dropped to only 77,500 by September.
Although the factory had been expected to begin production in 1943, shortages of labor and raw materials meant start-up had to be postponed repeatedly. The Allies bombed the plant in 1944 on 20 August, 13 September, 18 December, and again on 26 December. On 19 January 1945, the SS ordered that the site be evacuated, sending 9,000 inmates on a death march to another Auschwitz subcamp at Gliwice. The plant had almost been ready to commence production. From Gliwice, prisoners were taken by rail in open freight wagons to Buchenwald and Mauthausen concentration camps. The 800 inmates who had been left behind in the Monowitz hospital were liberated on 27 January 1945 by the 1st Ukrainian Front of the Red Army.
A young Jewish girl named Anne Frank (1929-1945), her parents and older sister moved to the Netherlands from Germany after Adolf Hilter and the Nazis came to power there in 1933 and made life increasingly difficult for Jews. In 1942, Frank and her family went into hiding in a secret apartment behind her father’s business in German-occupied Amsterdam. The Franks were discovered in 1944 and sent to concentration camps; only Anne’s father survived. Anne Frank’s diary of her family’s time in hiding, first published in 1947, has been translated into almost 70 languages and is one of the most widely read accounts of the Holocaust.
After the death of President Hindenburg on 2 August 1934, Hitler merged the offices of party leader, head of state and chief of government in one, taking the title of Führer und Reichskanzler. The Chancellery of the Führer, officially an organisation of the Nazi Party, took over the functions of the Office of the President (a government agency), blurring the distinction between structures of party and state even further. The SS increasingly exerted police functions, a development which was formally documented by the merger of the offices of Reichsführer-SS and Chief of the German Police on 17 June 1936, as the position was held by Heinrich Himmler who derived his authority directly from Hitler. The Sicherheitsdienst (SD, formally the "Security Service of the Reichsführer-SS") that had been created in 1931 as an intraparty intelligence became the de facto intelligence agency of Nazi Germany. It was put under the Reich Main Security Office (RSHA) in 1939, which then coordinated SD, Gestapo and criminal police, therefore functioning as a hybrid organisation of state and party structures.
On 20 July 1932, the Prussian government was ousted by a coup, the Preussenschlag; a few days later at the July 1932 Reichstag election the Nazis made another leap forward, polling 37.4% and becoming the largest party in parliament by a wide margin. Furthermore, the Nazis and the Communists between them won 52% of the vote and a majority of seats. Since both parties opposed the established political system and neither would join or support any ministry, this made the formation of a majority government impossible. The result was weak ministries governing by decree. Under Comintern directives, the Communists maintained their policy of treating the Social Democrats as the main enemy, calling them "social fascists", thereby splintering opposition to the Nazis. Later, both the Social Democrats and the Communists accused each other of having facilitated Hitler's rise to power by their unwillingness to compromise.
During the 1920s, Hitler urged disparate Nazi factions to unite in opposition to Jewish Bolshevism. Hitler asserted that the "three vices" of "Jewish Marxism" were democracy, pacifism and internationalism. The Communist movement, the trade unions, the Social Democratic Party and the left-wing press were all considered to be Jewish-controlled and part of the "international Jewish conspiracy" to weaken the German nation by promoting internal disunity through class struggle. The Nazis also believed that the Jews had instigated the Bolshevik revolution in Russia and that Communists had stabbed Germany in the back and caused it to lose the First World War. They further argued that modern cultural trends of the 1920s (such as jazz music and cubist art) represented "cultural Bolshevism" and were part of a political assault aimed at the spiritual degeneration of the German Volk. Joseph Goebbels published a pamphlet titled The Nazi-Sozi which gave brief points of how National Socialism differed from Marxism. In 1930, Hitler said: "Our adopted term 'Socialist' has nothing to do with Marxist Socialism. Marxism is anti-property; true Socialism is not".
The Germans reaffirmed their alliance with Italy and signed non-aggression pacts with Denmark, Estonia, and Latvia whilst trade links were formalised with Romania, Norway, and Sweden. Foreign Minister Joachim von Ribbentrop arranged in negotiations with the Soviet Union a non-aggression pact, the Molotov–Ribbentrop Pact, signed in August 1939. The treaty also contained secret protocols dividing Poland and the Baltic states into German and Soviet spheres of influence.
The National Socialist Programme was a formulation of the policies of the party. It contained 25 points and is therefore also known as the "25-point plan" or "25-point programme". It was the official party programme, with minor changes, from its proclamation as such by Hitler in 1920, when the party was still the German Workers' Party, until its dissolution.
On 31 July 1941 Hermann Göring gave written authorization to SS-Obergruppenführer Reinhard Heydrich, Chief of the Reich Main Security Office (RSHA), to prepare and submit a plan for a "total solution of the Jewish question" in territories under German control and to coordinate the participation of all involved government organisations. The resulting Generalplan Ost (General Plan for the East) called for deporting the population of occupied Eastern Europe and the Soviet Union to Siberia, for use as slave labour or to be murdered.
In most camps, prisoners were forced to wear identifying overalls with colored badges according to their categorization: red triangles for Communists and other political prisoners, green triangles for common criminals, pink triangles for homosexual men, purple triangles for Jehovah's Witnesses, black triangles for asocials and the "work shy", yellow triangle for Jews, and later the brown triangle for Romanis.