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Cautionary Tales with Tim Harford

Nazi Spy Mission Foiled by a Bunch of Fools: The Only Smart One Escapes with a Weird Trick

In WWII, the Nazis sent eight spies into the US, but the mission collapsed due to stupidity, infighting, and betrayal. The only smart one escaped with a bizarre sodium bicarbonate injection, revealing the fatal importance of recruitment and judgment.

WWIIspiesNazisdecision-makingpsychologyhistory

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The historical story is vivid, revealing the fatal impact of organizational recruitment and individual judgment, a cautionary tale for managers and decision-makers.

The argument · tap a timestamp to hear it

1:18

The sabotage team's fatal flaw was selection, not training

The German military intelligence agency Abwehr recruited nine Germans who had lived in North America to form a sabotage team codenamed Operation Pastorius, tasked with infiltrating the US to blow up railroads, canal locks, and aluminum plants. Training took place on a farm near Brandenburg, covering explosives, timing devices, invisible ink, and more. But the quality of the members was poor; most were fools, setting the stage for later failure.

— Tim Harford
4:24

Faking a venereal disease was the only rational decision in the group

Joseph Schmidt realized his teammates were all idiots who could get him killed, so he devised an extreme plan: injecting a baking soda solution into his penis to fake a venereal disease, thereby avoiding boarding the submarine. The naval officer examined him and indeed refused to let him board, so Schmidt escaped unscathed, becoming the only member to get away cleanly. This episode highlights an individual's self-preservation wisdom in a dangerous environment.

— Tim Harford
7:36

Their first lucky escape only emboldened them

George Dasch's four-man team landed on Amagansett Beach on Long Island, got lost in thick fog, and were spotted by a young Coast Guardsman. Dasch tried to bribe him with $260, but the guardsman refused and reported to his superiors. Although the Coast Guard was initially suspicious, they failed to pursue promptly, allowing Dasch and his men to escape by train to New York. This lucky escape made Dasch and the others bolder.

— Tim Harford
12:48

A spy with explosives first bought a gold watch and a car

Herbie Haupt was a German-American raised in Chicago. He left home to dodge the draft and because his girlfriend was pregnant, wandering through Mexico, Japan, and France before being recruited by the Abwehr. He landed in Florida by submarine with $14,000 and explosives, but put the mission aside, buying a gold watch, a car, and proposing to his girlfriend, acting nothing like a saboteur. His naivety and impulsiveness eventually led to his arrest.

— Tim Harford
22:13

The decision to defect was made on the spot, but surrender took days

In a 13th-floor hotel room in New York, Dasch threatened Berger to cooperate or jump out the window, and Berger readily agreed to defect. The two decided to surrender to the FBI, but Dasch delayed for days, playing cards and spending money, until he contacted the FBI on Friday. Berger provided key intelligence, including the handkerchief with invisible ink and Schmidt's existence. The defection stemmed from fear of the mission and disillusionment with the Nazis.

— Tim Harford
31:42

The two who surrendered voluntarily were the only ones not executed

Based on the confessions of Dasch and Berger, the FBI quickly arrested all eight spies. The trial was held by a secret military tribunal. Dasch's testimony ran to 254 pages but was rambling; Berger's was concise and detailed. Although defense lawyers argued they had not actually sabotaged anything, the prosecutors demanded the death penalty, and all eight were sentenced to death, with Dasch and Berger's sentences commuted to life imprisonment for their cooperation.

— Tim Harford
33:47

What crushed these eight was not the Nazis but conformity

The host cites a classic psychology experiment: when a room fills with smoke, a person alone will leave quickly; but if actors in the room ignore the smoke, only one in ten will leave. The experiment shows that when those around you are unresponsive, people doubt their own judgment. In Operation Pastorius, only Schmidt had the courage to break away; the other eight were driven to destruction by conformity.

— Tim Harford

In their own words · checked verbatim

These idiots, thought Joseph Schmidt, are going to get me killed.

Tim Harford4:24

Another figure appeared from the fog and said something to Dash in German. In German! In German! What an idiot!

Tim Harford9:42

We're going to talk, and if we disagree, only one of us will leave this room by the door. The other will leave by the window.

Tim Harford22:13

If you perceive danger, but others around you aren't taking action, don't assume you're the one who's wrong.

Tim Harford34:47

I had all reason to believe that I would be greeted with open arms, befriended as an ally.

Tim Harford35:49

Figures

Operation size9 people (8 landed, 1 escaped at the last minute)1:18
Submarine voyage duration17 days6:33
Length of Dasch's testimony254 pages30:40

Glossary

Abwehr
The German military intelligence agency during the Nazi era, responsible for foreign intelligence and sabotage operations.
Operation Pastorius
A covert Nazi German operation during WWII to infiltrate spies into the US for sabotage.
unlawful combatant
A person who participates in hostilities without wearing a uniform or complying with the laws of war, and may be subject to execution.

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Who it's for

Listeners interested in history, spy stories, organizational management, and the psychology of decision-making, especially business managers and entrepreneurs.

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