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One enormously key event was the Great Depression. The Depression was a global phenomenon, and Germany suffered extreme rates of joblessness and inflation during those years. Germany's economic situation had been made even more difficult by the reparation payments imposed on it as part of the Peace of Versailles that concluded World War I. The very bad state of affairs in Germany allowed a radical group like the Nazis and a charismatic strongman like Hitler to come to power by making grand promises to the German people.
Coupled with the economic problems plaguing Germany, there was also a strong desire by the German people to feel pride in their nation again. The Peace of Versailles had forced Germany to accept the guilt or responsibility for causing World War I. Germany was forced to disarm itself and have only a very small volunteer army. Hitler's appeal to national strength and the rebuilding of Germany's military might made him a popular figure also.
Hitler also mastered the art of campaigning and propaganda. He traveled all over Germany making staged appearances that whipped audiences into a frenzy of enthusiasm for the nation and the National Socialist German Workers' Party (the Nazis).
The "four-minute men" were a group of volunteers who gave four minute speeches on relevant topics in society such as the American war effort during WWI. They were shown in movie theaters when the reels would be changed.
Communism
This is an example of central planning in which everything is directed by the government. These types of economies tend not to do well because as the question states the incentive for individuals is taken away.
