George Watson on George Orwell's views of capitalism vs. socialism in 1940

By the outbreak of world war in 1939 the idea that Hitler was any sort of socialist was almost wholly dead. One may salute here an odd but eminent exception. Writing as a committed socialist just after the fall of France in 1940, in The Lion and the Unicorn, Orwell saw the disaster as a "physical debunking of capitalism", it showed once and for all that "a planned economy is stronger than a planless one", though he was in no doubt that Hitler's victory was a tragedy for France and for mankind. The planned economy had long stood at the head of socialist demands; and National Socialism, Orwell argued, had taken from socialism "just such features as will make it efficient for war purposes". Hitler had already come close to socialising Germany. "Internally, Germany has a good deal in common with a socialist state." These words were written just before Hitler's attack on the Soviet Union. Orwell believed that Hitler would go down in history as "the man who made the City of London laugh on the wrong side of its face" by forcing financiers to see that planning works and that an economic free-for-all does not.

~ George Watson, "Hitler and the Socialist Dream," Independent, November 22, 1998