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The Holocaust Industry

The Holocaust Industry

Reflections on the Exploitation of Jewish Suffering
by Norman G. Finkelstein 2000 286 pages
4.12
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Key Takeaways

1. The Holocaust Industry: An Ideological Exploitation

In the pages that follow, I will argue that “The Holocaust” is an ideological representation of the Nazi holocaust.

Ideological construct. The book argues that "The Holocaust" (capitalized) is not simply the historical event of the Nazi genocide but a specific ideological framework built around it. This framework, termed the "Holocaust industry," serves particular political and class interests, distinct from genuine historical understanding or remembrance. It is presented as a coherent construct, albeit one with a tenuous connection to the actual historical reality.

Serving vested interests. This ideological representation has become a powerful tool. It allows Israel, a formidable military power with a poor human rights record, to portray itself as a victim state. Similarly, it enables the most successful ethnic group in the United States to claim victim status, thereby gaining immunity from criticism, regardless of its validity. This "specious victimhood" yields significant benefits for those who wield it.

Moral corruption. The author contends that those who benefit from this immunity have not escaped the moral pitfalls often associated with such a position. The exploitation of Jewish suffering for political and financial gain is seen as a profound moral corruption, debasing the true lessons and memory of the Nazi genocide. The book aims to expose this corruption and restore integrity to the historical record.

2. Post-War Silence and the 1967 Shift

Until fairly recently, however, the Nazi holocaust barely figured in American life.

Initial indifference. Contrary to later narratives, the Nazi holocaust was largely ignored in American public life, including by American Jews and intellectuals, between the end of World War II and the late 1960s. Few books, films, or university courses addressed the topic, and major Jewish organizations initially opposed public memorialization. This was not due to trauma or repression, but rather indifference and political calculation.

Cold War alignment. The primary reason for this silence was the conformist stance of American Jewish elites, who closely aligned with official US Cold War policy. Rehabilitating West Germany as a crucial ally against the Soviet Union meant downplaying Nazi crimes. Remembering the Holocaust was associated with the political Left, which American Jewish elites sought to distance themselves from, even collaborating in McCarthy-era witch-hunts.

The 1967 turning point. Everything changed after the June 1967 Arab-Israeli war. Israel's decisive military victory impressed the US, leading to its incorporation as a strategic asset in the Middle East. For American Jewish elites, Israel's alignment with US power was a windfall, transforming it from a potential source of "dual loyalty" accusations into a symbol of "super-loyalty." This shift prompted a sudden "discovery" of Israel and, subsequently, the Holocaust.

3. The Holocaust as a Shield for Power

Once ideologically recast, The Holocaust (capitalized as I have previously noted) proved to be the perfect weapon for deflecting criticism of Israel.

Strategic asset. Following the 1967 war, American Jewish elites suddenly embraced Israel as a strategic asset, mirroring its new role in US foreign policy. This newfound support was not primarily driven by fears for Israel's vulnerability (which was less than in 1948) but by its strength and alignment with US interests. The Holocaust was then strategically deployed to protect this asset.

Immunizing Israel. The Holocaust framework became an indispensable tool to deflect criticism of Israel's policies, particularly its occupation of Arab lands and refusal to negotiate a settlement. By invoking the specter of a "second Holocaust" and portraying Israel as perpetually threatened, any critique of Israeli actions could be dismissed as anti-Semitism or a failure to learn from history. This provided Israel with effective immunity on the international stage.

Domestic application. The Holocaust also became a weapon in domestic American politics. As American Jews achieved significant secular success and shifted politically to the right, particularly evident in conflicts with African-Americans over issues like affirmative action, the Holocaust was invoked. It served to brand opposition to their conservative policies as anti-Semitic, deflecting criticism and defending their corporate and class interests by claiming victim status.

4. Dogmas of Uniqueness and Eternal Hatred

Two central dogmas underpin the Holocaust framework: (1) The Holocaust marks a categorically unique historical event; (2) The Holocaust marks the climax of an irrational, eternal Gentile hatred of Jews.

Uniqueness claim. The dogma of Holocaust uniqueness, absent from genuine scholarship but central to the Holocaust framework, asserts that the event is without parallel in human history. This claim is intellectually barren, as every event is unique in some way, and its specific justifications are often contradictory. Its persistence stems from its political utility, conferring unique entitlement and "moral capital" that primarily benefits Israel.

Eternal Gentile malice. The second dogma posits that the Holocaust was the culmination of a millennial, irrational hatred of Jews by Gentiles. This lacks historical evidence and is criticized for giving an alibi to anti-Semites by portraying Jew-killing as a "normal" occupation. Its political function is to justify the necessity of a Jewish state, explain hostility towards Israel as irrational anti-Semitism, and grant Jews total blamelessness and license in self-defense.

Chosenness reaffirmed. These dogmas implicitly or explicitly reinforce the idea of Jewish uniqueness and chosenness. If the Holocaust was unique because Jews suffered, it suggests Jews are special. If Gentile hatred is irrational and stems from envy of Jewish success, it validates Jewish superiority. This framework serves to immunize Israel and American Jewry from legitimate criticism by framing any opposition as pathological hatred rooted in history.

5. Fraud and Shoddy Scholarship in Holocaust Studies

Articulating the key Holocaust dogmas, much of the literature on Hitler’s Final Solution is worthless as scholarship.

Pervasive nonsense. The field of Holocaust studies, particularly the popular literature, is characterized by a significant amount of worthless scholarship, nonsense, and even outright fraud. This is facilitated by a cultural milieu that prioritizes ideological conformity over historical accuracy, especially when it reinforces the core dogmas of uniqueness and eternal Gentile hatred.

Embracing hoaxes. The Holocaust industry has embraced and promoted literary hoaxes that align with its narrative, such as Jerzy Kosinski's The Painted Bird and Binjamin Wilkomirski's Fragments. These books, filled with fabricated accounts of sadistic Gentile behavior, were celebrated as authentic survivor testimonies despite lacking factual basis. Prominent figures like Elie Wiesel and Israel Gutman endorsed these frauds.

Silencing critics. Genuine scholars who challenge the prevailing dogmas or expose the shoddiness of Holocaust literature face vilification and attempts at censorship. Questioning survivor testimony, highlighting the role of Jewish collaborators, or comparing the Holocaust to other genocides is often branded as "Holocaust denial," a bogy conjured to silence dissent and justify the industry's existence and expansion.

6. The Double Shakedown: Extorting Europe

In recent years, the Holocaust industry has become an outright extortion racket.

Claiming heirless assets. The Holocaust industry, particularly the World Jewish Congress and World Jewish Restitution Organization, has positioned itself as the sole legitimate claimant to all communal and private Jewish assets from the Holocaust era, including those of the dead. This forms the basis of a campaign to extract billions from European countries, often using the plight of "needy Holocaust victims" as leverage.

Targeting impoverished nations. This campaign has extended to the impoverished countries of Eastern Europe, former Soviet-bloc nations where much of European Jewry resided before the war. The industry demands the handover of pre-war Jewish properties or massive monetary compensation, threatening these vulnerable nations with US sanctions and economic pressure, despite their limited resources.

Fomenting anti-Semitism. The aggressive and often ruthless pursuit of these financial claims, coupled with the industry's rhetoric of Gentile culpability and Jewish entitlement, has been identified as a major factor in the resurgence of anti-Semitic sentiments in Europe. The industry's actions are seen as confirming negative stereotypes and generating resentment among populations struggling with their own economic difficulties.

7. The Swiss Banks Campaign: Blackmail and Misrepresentation

Purporting to represent all of world Jewry, living and dead, it is laying claim to Holocaust-era Jewish assets throughout Europe.

Easy target. Switzerland was the first major target of the extortion campaign, seen as vulnerable due to its wealthy banks and the perception that few would sympathize with bankers against "needy Holocaust survivors." The campaign was orchestrated by powerful American Jewish organizations, leveraging their political connections in the US government.

Pressure tactics. The campaign employed a multi-pronged strategy including class-action lawsuits based on flimsy evidence, intense political pressure from the US administration and Congress, and threats of economic boycotts by state and local governments. This created a "court of public opinion" where the Swiss were effectively judged and condemned without due process.

Disproved allegations. Despite the industry's claims of systematic denial of accounts, profiting from looted gold and slave labor, independent audits (Volcker and Bergier commissions) found no evidence of systematic wrongdoing or destruction of records by Swiss banks. The actual value of unclaimed Holocaust-era accounts was dramatically lower than alleged. The $1.25 billion settlement was a result of blackmail, not validated claims.

8. Misappropriation of Compensation Funds

Indeed, a guiding principle of the Claims Conference prohibited use of monies for “direct allocations to individuals.”

Diverting funds. The Claims Conference, an umbrella organization of major Jewish groups, has a history of mismanaging and misdirecting compensation funds intended for Holocaust victims. It violated agreements with Germany by using monies earmarked for individual survivors for its own projects and the rehabilitation of Jewish communities, rather than direct aid to the needy.

Profiting bureaucracy. A significant portion of the compensation monies extracted from European countries is consumed by the vast, well-heeled bureaucracy of the Holocaust industry itself, including high salaries for executives and substantial fees for lawyers involved in the shakedown campaigns. This leaves only a fraction for the actual survivors in whose name the money was raised.

"Residuals" for organizations. The industry plans to use "residual" funds – the billions remaining after claims are processed – for Jewish organizations and "Holocaust education," rather than supplementing the meager allocations for survivors' basic needs like healthcare. This is justified by inflating survivor numbers and projecting their rapid decline, ensuring that by the time funds are distributed, few actual survivors will be alive to claim them.

9. Inflating Survivor Numbers and Whitewashing History

If everyone who claims to be a survivor actually is one,” my mother used to exclaim, “who did Hitler kill?”

Expanding the definition. The definition of "Holocaust survivor" has been dramatically expanded over time, from approximately 100,000 camp inmates at the end of the war to nearly a million today, including those who merely evaded the Nazis. This inflation is driven by the need to justify larger compensation claims and maintain the narrative of widespread victimhood.

Contradicting historical facts. The inflated numbers of living survivors, particularly former Jewish slave laborers, contradict established scholarly estimates of those who survived the camps and the war. Claiming hundreds of thousands of Jewish slave laborers survived implies that concentration camp conditions were not as lethal as historically understood, inadvertently aligning with arguments made by Holocaust deniers.

Undermining the narrative. The industry's manipulation of numbers to boost financial claims undermines the very historical narrative it claims to protect. By suggesting a much higher survival rate than was possible given the genocidal intent and conditions, it inadvertently casts doubt on the efficiency and scale of the Nazi extermination, a central tenet of the Holocaust framework.

10. The US Record and Hypocrisy

The most explosive finding of the Volcker Committee went unreported in the American media.

Primary safe haven. The Volcker Committee audit, while focusing on Swiss banks, also revealed that the United States was a primary safe haven for transferable Jewish assets from Europe before and during the war, alongside Switzerland. This crucial finding was largely ignored by the American media and the Holocaust industry.

Worse record, no demands. Despite the US having a worse record than Switzerland regarding the handling of dormant Holocaust-era accounts and the denial of refuge to Jewish refugees, no comparable demands for comprehensive audits or billions in compensation were made on American banks or the US government. The US paid out only a "pittance" on unclaimed assets.

Moral posturing. The US government, particularly under the Clinton administration, adopted a stance of moral leadership, lecturing European nations on their duty to confront their past and provide restitution. This posturing was hypocritical, given the US's own failure to adequately address its historical injustices, such as slavery or the extermination of Native Americans, or its complicity in contemporary human rights abuses.

11. The Exploitation of Eastern Europe

Emboldened by its success in shaking down the Swiss, the Holocaust industry moved quickly to “test” the rest of Europe.

New frontier. With the collapse of the Soviet bloc, Eastern Europe became a new frontier for the Holocaust industry's compensation campaign. These impoverished nations, home to the vast majority of pre-war European Jewry, possess significant communal and private Jewish properties that the industry seeks to claim.

Threats and pressure. The industry employs the same tactics used against Switzerland and Germany, leveraging US political connections and threatening sanctions to pressure governments into handing over properties or paying compensation. This is done away from public scrutiny, as blackmailing impoverished nations is less palatable than targeting wealthy banks.

Local conflict. The campaign has also created conflict within Eastern European Jewish communities, as local groups vie with the international Holocaust industry for control over heirless assets. The requirement to formally affiliate with a local community to benefit from claims is seen as a cynical attempt to "revive" Jewish life by tying it to financial gain.

12. The True Legacy: Pollution of Memory

The Holocaust industry has always been bankrupt. What remains is to openly declare it so.

Vulgarization and evasion. The saturation of American life with "The Holocaust," driven by the industry, has led to its vulgarization and use for trivial or self-serving political causes. It also serves as a form of moral evasion, allowing Americans to focus on the crimes of others while ignoring their own historical and contemporary injustices.

Selective remembrance. The memory of the Holocaust is selectively invoked to condemn the crimes of official US enemies while ignoring or downplaying atrocities in which the US is complicit. This instrumentalization prevents genuine learning from the past and distorts the moral lessons of the Nazi genocide.

Debasing martyrdom. The author argues that the Holocaust industry's exploitation of Jewish suffering for financial and political gain debases the martyrdom of the victims. The pursuit of "Holocash" reduces the moral stature of their suffering to that of a casino, overshadowing the true lessons of universal human suffering and the need for solidarity with all victims of injustice.

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Review Summary

4.12 out of 5
Average of 3k+ ratings from Goodreads and Amazon.

The Holocaust Industry is a controversial book that examines the exploitation of Jewish suffering for political and financial gain. Reviews are mixed, with some praising Finkelstein's thorough research and critique of organizations profiting from Holocaust reparations, while others find his arguments reductive or offensive. Many reviewers appreciate Finkelstein's exposure of fraudulent Holocaust memoirs and his analysis of how the Holocaust narrative has been used to deflect criticism of Israel. However, some criticize his polemical style and broad generalizations. Overall, the book is seen as thought-provoking but divisive.

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About the Author

Norman Gary Finkelstein is an American political scientist and activist known for his work on the Holocaust and the Israeli-Palestinian conflict. Born to Holocaust survivors, Finkelstein has become a vocal critic of Israeli policies towards Palestinians. His controversial views have led to academic conflicts, including being denied tenure at DePaul University in 2007. Finkelstein's rivalry with pro-Israel academic Alan Dershowitz is well-known, and his suspected connections to anti-Zionist groups have resulted in him being banned from entering Israel for a decade. Despite criticism, Finkelstein continues to be a prominent voice in discussions surrounding Holocaust studies and Middle Eastern politics.

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