The Austro-Hungarian Empire was rife with ethnic tensions that undermined the possibilities for Jewish assimilation in Central Europe. The Jews were trapped between rising German nationalism and other nationalisms. Discusses various Jewish and non-Jewish attitudes toward the "Jewish problem", whereby Jews were often stereotyped (e.g. by Rosa Luxemburg) or were considered to need a solution separate from that of European majority peoples (e.g. Nathan Birnbaum and Max Nordau). Views Nietzsche as belonging more to the philosemites than the antisemites, for whom he had great scorn; however, his complexity and obscurity provided ammunition for antisemites, including the Nazis. Herzl believed that a Jewish state was needed to provide a home for Jews suffering from antisemitism. Freud's experience of antisemitism, combined with his negative view of human nature, left no room for illusions about Austrian and German acceptance of Jews. Karl Kraus exhibited elements of Jewish self-hatred when he identified the worst elements of contemporary journalism and capitalism with Jews. Karl Lueger used political antisemitism to become mayor of Vienna. He provided a model for Hitler, who imbibed antisemitic attitudes and stereotypes from the cauldron of nationalisms that was Austria-Hungary.

The question of how the Nazis came to power in one of the most advanced countries in the world, both industially and culturally, remains a burning question. In this work the author discounts recent arguments suggesting that their success was the product of a profound and long-held anti-Semitism within the German national psyche and demonstrates that the Nazis were of marginal significance until the crisis in the German economy made their commitment to smash any gains for the working class from the German Revolution attractive to wide sections of the German ruling class.