[BenoitEssiambre]

"[Brüning] enacted a draconian policy of deflation and drastically cutting state expenditure.[5] Among other measures, he completely halted all public grants to the obligatory unemployment insurance introduced in 1927, resulting in workers making higher contributions and fewer benefits for the unemployed. Benefits for the sick, invalid and pensioners were also reduced sharply.[52] Additional difficulties were caused by the different deflationary policies pursued by Brüning and the Reichsbank, Germany's central bank.[...]Brüning triggered a deflationary internal devaluation by forcing the economy to reduce prices, rents, salaries and wages by 20%."

This made unemployment skyrocket and arguably caused the rise of Hitler.

https://en.wikipedia.org/wiki/Weimar_Republic#Br%C3%BCning's...

EDIT: I'm not sure why all the downvotes, maybe because it looks like I Godwin-ed the thread? I was just paraphrasing the rest of the wikipedia section:

"In 1933, the American economist Irving Fisher developed the theory of debt deflation. He explained that a deflation causes a decline of profits, asset prices and a still greater decline in the net worth of businesses. Even healthy companies, therefore, may appear over-indebted and facing bankruptcy.[57] The consensus today is that Brüning's policies exacerbated the German economic crisis and the population's growing frustration with democracy, contributing enormously to the increase in support for Hitler's National Socialist German Workers' Party"

[dialamac]

> EDIT: I'm not sure why all the downvotes, maybe because it looks like I Godwin-ed the thread? I was just paraphrasing the rest of the wikipedia section:

Well in a thread about the re-emerging dominance of idiocy in silicon valley, consider it more supporting evidence.

[np_tedious]

The Weimar Republic known for dramatic hyperinflation.

Even if you google "weimar republic _deflation_" emphasis mine, the first hit is https://en.m.wikipedia.org/wiki/Hyperinflation_in_the_Weimar...

> A loaf of bread in Berlin that cost around 160 Marks at the end of 1922 cost 200,000,000,000 Marks by late 1923.

I was not previously familiar with the events you referenced. It sure seems like the Chancellor made very poor choices when the Great Depression began, perhaps because he was terrified of inflation happening again.

[ByteJockey]

Wait, hold up. Are we talking about a policy of deflation (decreasing government spending), or deflation of the currency (contraction of the monetary supply and an ongoing increase of value of the currency)?

I thought we were talking about the latter.

I could still be wrong, and if you have any data on the value of the mark used at the time, I'd be willing to move on my position.

Ultimately what I'm asking here I guess, is do we have any evidence that what Brüning was trying to do worked?