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In the years leading up to Hitler, many völkisch groups appeared in Germany; the English equivalent “folk” doesn’t quite convey the blend of mythology, folklore, legend, and nationalism that the German term suggests. Jung’s emphasis on history and myth, as well as his rejection of scientific materialism, made these groups sympathetic to his work, as opposed to Freud’s which, along with being Jewish, was reductionist. Although much has been made of it,29 Jung’s own connection, if any,30 to the völkisch movement is unclear. The only strong link is his friendship with the German indologist J. W. Hauer, who founded the German Faith Movement in 1932, a religious society aimed at replacing Christianity in German-speaking countries with an anti-Christian and anti-Semitic modern paganism based on German literature and Hindu scripture. Hauer, an ardent Nazi, hoped his movement would become the official religion of the Reich. Hitler, however, thought little of Hauer and laughed at his followers who “made asses of themselves by worshipping Wotan and Odin and the ancient, but now obsolete, German mythology,”31 a remark that says much about Hitler’s cynicism toward the völkisch ideology he nevertheless exploited to gain power.
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Gary Lachman (Jung the Mystic: The Esoteric Dimensions of Carl Jung's Life & Teachings)