Correct, I feel like everyone else here has only "read" Tooze insofar as they heard a YouTube video while playing Call of Duty through a muffled speaker.
The capture of Austria and Czechia helped cool the rampant hidden inflation of rearmament and delay the economic collapse caused by the balance of payments crisis with additional gold reserves. The conquests captured raw materials, food, oil, and slaves which fueled the economy. The slaves allowed extensions of conscription and the changing of the Wehrmacht from a seasonal army to a permanently mobilized force in the Winter of 41/42. The rape of civilian goods and luxury items drove the machine of corruption that kept so many complicit and provided bad incentives for those in charge of the economy.
It wasn't gold teeth that produced Panzers, and nowhere does Tooze make that argument.
For anyone who thinks the Nazi economy was "efficient" you need only compare the factories of the major belligerents and see the Germans producing artisanal weapons and vehicles by stage and station rather serial production.
What makes Tooze so compelling is how everything has the leadership themselves describing the economic situation, from memoirs and diaries to speeches, all discussing the shortages and crises and how things were going poorly in the economy.
Here's the problem, Tooze concludes that Germany HAD to start Operation Barbarossa because pre war rearmament wasn't sustainable, which gets the priorities of the German leadership wrong and doesn't account for how the economy changed once the war began.
Germany wasn't bankrupting themselves and thereby putting themselves on a path of war, they were purposefully seizing what they saw as a diminishing window of opportunity to go to war, which wasn't sustainable, but which the leadership knew could be supported by going into a command economy once the war began. Operation Barbarossa had to happen as well when it did. The soviets were expanding their forces too, and every year spent waiting simply meant fighting a more prepared Soviet Union.
There was never any danger of the economy collapsing because the leadership knew exactly where they were taking things. For example the MEFO bills? The equivalent of taking massive loans if you know you're going to be fleeing the country or you're terminally ill. Once the war began nobody was going to try to demand their loans back from the German government.
The seizing of resources and materials from occupied territories? Every army does this. having the game hyperfocus on Germany using foreign industry to prop up their own is silly when every nation in WW2 occupying territory did this. Do people think the British and the Soviets got nothing out of occupying Iraq and Iran?
Tooze especially shows his colors when he starts writing about the Soviets once Germany invades. For example he constantly downplays the effect of lend lease, which you only see Soviet apologists do. He constantly gets things wrong about miltiary equipment and the strategic situation, for example writing that the Battle of Britain was decided because the Spitfire was superior to the Bf 109. That's dumb. Germany wasn't able to defeat Britain in the skies in 1940 because they were flying across the channel and had to fight the RAF above their territory, that takes more fuel, you need planes that can travel longer distances, you lose pilots that bail out when shot down, the enemy can choose when and where to engage you. He does that armchair general stuff where he writes that the allies should have kept focusing on the italian front rather than focusing on France, which is obviously dumb for anyone who knows how going through the Winter Line and Gothic Line went for the allies.
Every memoir of every leader in WW2 speaks of shortages. Millions perished in famines in allied and Soviet held lands because food was scarce. Thanks to the US the allies had it better when it came to raw materials and industrial production capacity, but they're the exception in the war in all regards.