They turned a blind eye. I watched a documentary about it where they interviewed Germans. They were living the high life, having parties, going on cruises, reaping the spoils of war, and they chose to turn a blind eye when they heard the stories about Jews being exterminated.
The nazis may have had parties and such, despite the economy being better, people were still poor when put up to modern standards, most of them didn't turn a blind eye by their own will.