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I can't find anything on it in the manual. It barely speaks about population. Germany's population always drops by half. Why do I keep loosing my population? I'm playing Axis Blitz Scenario.

It's a little hard to find, but the governing rule is under production, section 11.5.

Since Germany has a total of 11 population points, the most that Germany can store in the population pool at the end of the German production phase is 11. But at the start of each German turn an additional 11 population points are added, which temporarily bumps the pool up to 22 points (it can go even higher if German units get damaged during the Allied turns ... each damaged unit adds a point to the pool).

But at the end of Germany's production phase the pool limit (11 points) kicks in; any excess points not used to produce new units are lost. So the Germans always want to plan their production so they're building enough units each turn to lower the pool to 11 ... they can't afford to waste manpower.

Sounds like a very abstract approach to some degree of reality. Very Gary Grigsby'ish in design.