The Great Depression, triggered by
the stock market crash in New York in October 1929,
was an economic event of global significance,
of course, for Germany as well.
German Chancellor Heinrich Brüning
responded to the crisis with a rigorous austerity policy,
and as a result became known as “hunger chancellor”.
It is a popular topic of discussion among historians
to what extent Brüning's deflationary policy was avoidable.
Did he have the economic and political
also contractual possibilities to borrow?
Brüning coined the quote:
“The situation of German finances are
before the eyes of the world.”
This is the strangest weapon
at the administration's disposal.
By this he meant precisely that
Germany simply cannot service the reparation payments.
In our “reality space”, we show Franz von Papen
then having his successor sign
the Treaty of Lausanne in July 1932,
which means the end of reparations payments.
Brüning himself was stopped 100 meters from the finish line,
as he said, because the President of the Reich,
Paul von Hindenburg, withdrew his confidence.
Brüning’s governement resigned in May of 1932.
Who benefited from the
economic upswing later, from 1932 on?
It was the National Socialists.