Ok, there are two ways to look at this:
- The holocaust survivors are being compensated for physical and mental terror.
- The holocaust survivors are being compensated, in a uniform, abstract sort of way, for actual monetary/property that was stolen by the Nazis.
My understanding of the situation is that Max Torque above is right, and that the compensations are more along the lines of number 2. The issue that no one ever seems to bring up is that, historically, this is not simply a Jewish problem. The nazis plundered, by treaty and other means, every country they conquered. Conquered nations immediately had the gold and foriegn holdings of their banks appropriated. In addition, there were “occupation costs” that each nation was required to pay Germany. By the end of the war, these had come to 60 billion marks, a majority (31.5 billion) form France. These occupation costs and “credits” that countries were forced to grant to Germany sucked up about two thirds of the national income for both Belgium and the Netherlands. All told, the Germans extracted 104 billion marks in tribute, officially, from conquered nations ($26,000,000,000 if we use the unofficial ratio of 4 marks to the dollar).
Most of their plundered goods, however, were carted off under no official auspices. It has been estimated that, in France, the Germans took (as “levies in kind”) 9 million tons of cereal, 75% of the total production of oats, 80% of oil, 74% of steel, etc. etc., for a total, from the french alone, of 184.5 billion francs. Occupied Russia was raped, but apparently with some difficulty, as the total haul was estimated by the Germans to be only worth about 4 billion marks. In Poland, 700,000 estates comprising 15 million acres were “seized,” and 9,500 estates comprising 6.5 million acres were “confiscated” (no one is quite sure what the difference between the two words here is, but it apparently made little difference to the Poles).
(Note: all of the above figures come from William L. Shirer’s “The Rise and Fall of the Third Reich”, pp. 943-944, some very brief portions of the text are taken verbatim here.)
None of this takes into account the monetary value of slave labor that the Nazis employed. In September of 1944, this amounted to 7 and a half million foriegn civilians and about 2 million P.O.W.'s. (again, from Shirer), mostly Russians and other Slavs (to my understanding, Jews were rarely used in slave labor since the Germans were busy killing them).
So, what’s the point of all this boring, depressing twaddle? The point is that, while the Jews certainly caught the worst of the Nazi terror, they were hardly alone when it came to monetary damages. To have Germany repay only one of the groups it plundered seems hypocritical. To have them pay back everyone they plundered, and their descendants, in full, would probably bankrupt the country (bear in mind, the Nazis never got to hoard their spoils; they were almost uniformily thrown in to war production and thus irrevocably lost). A bankrupted, and therefore radicalized, Germany is what led to the rise of the Nazis in the first place. Best not to go down that path.