The Third Reich lost the Second World War (1939 - 1945) due to a number of inexplicably interlinking themes. The nature of Nazi leadership, with Hitler’s central role and dominance as a decision-maker, is a direct cause of failure due to its effects on both the German economy leading up to and during the war, and the Nazi leadership’s disastrous military decisions on the Eastern front. The effects of Nazi ideology and racism must also be evaluated in shaping decisions throughout the war, which ultimately resulted in the Third Reich’s demise. The Third Reich lost the war ultimately due to its administrative disarray in economic and military affairs, with ideology being the driving force behind poor decisions. Economically, as Richard Overy argues in War and Economy in the Third Reich, the Third Reich had indeed mobilised the war economy by reducing consumer goods and setting higher production targets in order to support increasing military spending. However, it cannot be stated that this was in preparation for a prolonged total war. It was because of administrative disorganisation that a tension developed between the labour force and conscription into the armed forces, which resulted in inefficiency and poor allocation of men and resources. By challenging the United States, the world’s largest economy, the Third Reich was to become overwhelmed by the sheer force of the American military, as well as enormous American financial backing of British and Soviet industry. Militarily, the swift victories of the Third Reich’s blitzkrieg at the start of the war gave Hitler the confidence to pursue racially motivated aims, which prompted the unadvised invasion of the Soviet Union. Because of the nature of the Nazi party, generals were unwilling to object to Hitler’s plan to invade the Soviet Union. Furthermore, due to the administrative disorder, the result of Operation Barbarossa was confusion, chaos, and genocide. The Nazis’ contempt for Slavs and Jews made them incapable of following beneficial war plans, and prioritising the further radicalised notions of ethnic cleansing and lebensraum. Ultimately, it was the very nature of the Nazi Party that resulted in terrible decisions made regarding the economy, which made Germany simply unable to win a long war of attrition. The uncooperative, disorganised Third Reich leaders, swayed by racial hatred, were led to make catastrophic military decisions, which paved the way to ultimate and inevitable defeat.