Nolte first rose to fame with his 1963 book Der Faschismus in seiner Epoche (Fascism In Its Epoch; translated into English in 1965 as The Three Faces Of Fascism), in which he argued that fascism arose as a form of resistance to and a reaction against modernity. Nolte's basic hypothesis and methodology were deeply rooted in the German "philosophy of history" tradition, a form of intellectual history which seeks to discover the "metapolitical dimension" of history. The "metapolitical dimension" is considered to be the history of grand ideas functioning as profound spiritual powers, which infuse all levels of society with their force. In Nolte's opinion, only those with training in philosophy can discover the "metapolitical dimension", and those who use normal historical methods miss this dimension of time. Using the methods of phenomenology, Nolte subjected German Nazism, Italian Fascism, and the French Action Française movements to a comparative analysis. Nolte's conclusion was that fascism was the great anti-movement: it was anti-liberal, anti-communist, anti-capitalist, and anti-bourgeois. In Nolte’s view, fascism was the rejection of everything the modern world had to offer and was an essentially negative phenomenon. In a Hegelian dialectic, Nolte argued that the Action Française was the thesis, Italian Fascism was the antithesis, and German National Socialism the synthesis of the two earlier fascist movements.
Nolte argued that fascism functioned at three levels: in the world of politics as a form of opposition to Marxism, at the sociological level in opposition to bourgeois values, and in the "metapolitical" world as "resistance to transcendence" ("transcendence" in German can be translated as the "spirit of modernity"). Nolte defined the relationship between fascism and Marxism as:
“Fascism is anti-Marxism which seeks to destroy the enemy by the evolvement of a radically opposed and yet related ideology and by the use of almost identical and yet typically modified methods, always, however within the unyielding framework of national self-assertion and autonomy."
Nolte defined "transcendence" as a "metapolitical" force comprising two types of change. The first type, "practical transcendence", manifesting in material progress, technological change, political equality, and social advancement, comprises the process by which humanity liberates itself from traditional, hierarchical societies in favor of societies where all men and women are equal. The second type is "theoretical transcendence", the striving to go beyond what exists in the world towards a new future, eliminating traditional fetters imposed on the human mind by poverty, backwardness, ignorance, and class. Nolte himself defined "theoretical transcendence" as:
"Theoretical transcendence may be taken to mean the reaching out of the mind beyond what exists and what can exist toward an absolute whole; in a broader sense this may be applied to all that goes beyond, that releases man from the confines of the everyday world, and which, as an "awareness of the horizon", makes it possible for him to experience the world as a whole."
Nolte cited the flight of Yuri Gagarin in 1961 as an example of “practical transcendence”, of how humanity was pressing forward in its technological development and rapidly acquiring powers traditionally thought to be only the providence of the gods. Drawing upon the work of Max Weber, Friedrich Nietzsche, and Karl Marx, Nolte argued that the progress of both types of "transcendence" generates fear as the older world is swept aside by a new world, and that these fears led to fascism. Nolte wrote that:
"The most central of Maurras's ideas have been seen to penetrate to this level. By "monotheism" and "anti-nature" he did not imply a political process: he related these terms to the tradition of Western philosophy and religion, and left no doubt that for him they were not only adjuncts of Rousseau's notion of liberty, but also of the Christian Gospels and Parmenides' concept of being. It is equally obvious that he regarded the unity of world economics, technology, science and emancipation merely as another and more recent form of "anti-nature". It was not difficult to find a place for Hitler ideas as a cruder and more recent expression of this schema. Maurras' and Hitler's real enemy was seen to be "freedom towards the infinite" which, intrinsic in the individual and a reality in evolution, threatens to destroy the familiar and beloved. From all this it begins to be apparent what is meant by "transcendence"."
In regard to the Holocaust, Nolte contended that because Adolf Hitler identified Jews with modernity, the basic thrust of Nazi policies towards Jews had always aimed at genocide: Nolte wrote that:
"Auschwitz was contained in the principles of Nazi racist theory like the seed in the fruit".
Nolte believed that, for Hitler, Jews represented "the historical process itself". Nolte argues that Hitler was "logically consistent" in seeking genocide of the Jews because Hitler detested modernity and identified Jews with the things that he most hated in the world. According to Nolte, "In Hitler's extermination of the Jews, it was not a case of criminals committing criminal deeds, but of a uniquely monstrous action in which principles ran riot in a frenzy of self-destruction". Nolte's theories about Nazi antisemitism as a rejection of modernity inspired the Israeli historian Otto Dov Kulka to argue that National Socialism was an attack on "the very roots of Western civilisation, its basic values and moral foundations".
The Three Faces of Fascism has been much praised as a seminal contribution to the creation of a theory of generic fascism based on a history of ideas, as opposed to the previous class-based analyses (especially the "Rage of the Lower Middle Class" thesis) that had characterized both Marxist and liberal interpretations of fascism. The German historian Jen-Werner Müller wrote that Nolte "almost single-handedly" brought down the totalitarianism paradigm in the 1960s and replaced it with the fascism paradigm. British historian Roger Griffin has written that although written in arcane and obscure language, Nolte's theory of fascism as a "form of resistance to transcendence" marked an important step in the understanding of fascism, and helped to spur scholars into new avenues of research on fascism.
Criticism from the left, for example by Sir Ian Kershaw, centered on Nolte's focus on ideas as opposed to social and economic conditions as a motivating force for fascism, and that Nolte depended too much on fascist writings to support his thesis. Kershaw described Nolte's theory of fascism as "resistance to transcendence" as "mystical and mystifying". The American historian Fritz Stern wrote that The Three Faces of Fascism was a "uneven book" that was "weak" on Action Française, "strong" on Fascism and "masterly" on National Socialism.
Later in the 1970s, Nolte was to reject aspects of the theory of generic fascism that he had championed in The Three Faces of Fascism and instead moved closer to embracing totalitarian theory as a way of explaining both Nazi Germany and the Soviet Union. In Nolte's opinion, Nazi Germany was a "mirror image" of the Soviet Union and, with the exception of the "technical detail" of mass gassing, everything the Nazis did in Germany had already been done by the Communists in Russia.
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