Was 1920s Germany a decaying capitalist country? I thought fascism is more about hierarchy and subjugation based on establishing a class system and capitalism enables the shifting of resources to deprive the masses of the ability to easily resist. Capitalism helps fascism but they can be independent of each other.
Yes, yes it was. Massive economic struggles post ww1, political instability due to the recent shift away from the monarchy. You have probably seen the images of workers hauling their day's pay away in a wheelbarrow and kids playing with stacks of money, because the hyperinflation destroyed its value faster than people could even spend it.
The two are mutually dependent on each other, without the capitalist economy the government would collapse, without government then capitalism would become too unstable and monopolistic, and workers would be able to see it for what it really is, and their revolutionary place within history. The ruling class and their representative politicians makes the rules, the state enforces them with violence, and does other things to create (sort of) false middle classes that effect worker consciousness.
Saying capitalism is an economic system is extremely reductive. Coin currency has existed for a long time, but it isn't capital. Under capitalism, every aspect of our lives requires money, and every bit of work we do is exploited. We are alienated from nature, from our work, each other and our selves. Wages work is just a temporary form of slavery that you agree to, but without money you have no way to sustain yourself, you have to sell your labor or starve. This isn't just an economic system it is a whole system of oppression. Fascism is just one of the many forms it takes. On the other end you would have like social democracies.
So the two things, capital and the state, are linked, contradictory, and inseparable. But when you only look at things as objects and not as relationships or the product of human labor (which objectivism/empiricism is not good at doing) then your only option is to categorize and parameterize "things". This reinforces the existing illusions about capitalism and the state. To see through them, we need to learn to inform our actions with dialectics and humanism.
A country can have one type of government, like monarchy or anarchy or so, and also one type of economy like communism or socialism or so. Of course, there will be some interaction, eg. laws the government makes can affect the economy or the corruption in the government will manifest differently in another type of economy.
If for example, the king in a monarchy decides to switch from capitalism to socialism, there is nothing that forbids the combination with monarchy. Same, if a king gets toppled and the citizens switch to democracy, they can keep their former type of economy. They are very different properties of a nation.
Why? Capitalism consolidated wealth into just a few companies and people. Those people want to be in charge, so they bribe politicians and help them win. The kind of politicians that will take a bribe care more about consolidating their power than representing the people. They rework the government to make it easier to stay in power. This is fascism.
It's practically a straight line.
There are plenty of ways to mitigate this and protect against it, which the US had. These were systematically dismantled over the years and no one stopped it.
Rich powerful people used fascism to defend their wealth from rising labour unions and socialist tendencies in Germany and elsewhere. This should ring a bell seeing all the tech billionaires rally behind Trump to protect themselves from a Green New Deal, higher minimum wage, environmental regulations and so on