Austerity or Death #4
The session had barely begun when Brüning spoke. “The cabinet will resubmit the budget bill.”
Of course. I knew he wouldn’t give up so easily.
“It is the same bill that was rejected last Saturday, but we wish to leave the door open for sufficient negotiation with the honorable members on the numerical details.”
The Chancellor continued, earnestly emphasizing the budgetary limits that could realistically allow for negotiation, along with their direction and necessity. He must have agonized over this quite a bit after those drinks with me. Besides, the previous vote had failed by a mere five-vote margin, so he probably judged that there was still a chance worth pursuing. His eyes looked terribly haggard in every respect.
“The core lies in reducing state expenditure and promoting exports. The current bill centers on cuts to social security, reductions in civil service wages and pensions, and higher tariffs. Through these measures, we aim to reduce minimum government spending by approximately fifteen percent, within which further detailed adjustments can be made.”
It was obvious at a glance that he was trying to peel away some Social Democratic votes.
“I would like to hear first from Representative Otto Wels of the Social Democratic Party.”
As expected, my prediction was spot on. It would probably be more talk about austerity, so I had planned to zone out and kill time, but since he seemed to have brought something new today, I decided to listen carefully.
“What exactly do you wish to hear, Chancellor? Our Social Democratic Party cannot consent to any compromise through this budget bill.”
“But negotiation over the budget bill is possible, is it not?”
“This is a proposal to carve flesh from the people and stuff it into the national treasury. No matter how far our Social Democratic Party has drifted from the essence of Marx, how could we so easily compromise and acquiesce?”
“The words ‘compromise’ and ‘acquiesce’ do not mean abandoning the workers, Representative Wels. The austerity measures proposed thus far have reduced housing subsidies by thirty-eight percent and education subsidies by thirty-three percent, while maintaining a fifteen-percent cut to the medical and public health system, all in order to focus on restoring national finances. However, we could scale back those reductions somewhat so that, rather than austerity becoming the ‘means of starving the people’ as the Social Democrats fear, it might instead pursue a somewhat more equitable form of development.”
Brüning spoke without hesitation.
“...So in the end, this is simply a proposal to secure a few more yes votes, isn’t it?”
“Of course it is. But that is not the sole objective. As you know, Germany’s recovery is impossible without austerity. Germany now faces only two choices: implement austerity and restore relations and peace with the West, or abandon austerity and sink endlessly into a quagmire of debt. The methods advocated by the Social Democratic side still remain largely theoretical, do they not?”
“That may be true, but—”
“Therefore, austerity remains the only option. I believe we can discuss and compromise on this austerity—which must be carried out— in a way that makes it more people-friendly, without provoking excessive backlash or adverse effects.”
Oh… He clearly came very well prepared.
“Hmm…”
Representative Wels on the Social Democratic side also appeared to be wrestling with the matter from several angles.
“Then please grant us a little time. We too will need time to perform our own numerical calculations and prepare an answer. Once a compromise proposal has taken shape, let us speak again, Chancellor.”
“Very well, Representative Wels. I look forward to a desirable outcome.”
Wels set down the microphone and returned to his seat.
“Um… may I ask a question?”
I immediately stood, microphone in hand. Listening to all this had raised a question of my own. Will they even give me the floor?
“Ah… Representative Heinz of the Labor Party…”
The Speaker exchanged glances with Brüning. When the Chancellor gave a nod, he said, “I will permit the floor for now. However, Representative Heinz, I ask that you refrain from excessively prolonging your speaking time as you did in the previous session, or from engaging in discourteous arguments with other members. Should any further excessive statements be heard, be advised that the floor may be revoked mid-speech. You may proceed.”
Whoa. What’s this? They’re being surprisingly lenient. Considering the stunt I pulled last time, this was actually quite generous.
Brüning stared at me with an expression that seemed to ask, Are you going to repeat what was already discussed before?
“Ah, no. This time I’m not here to oppose austerity. That goes without saying…”
Opposing austerity is basically a passive skill for us leftists now.
“If the Chancellor’s budget bill is implemented, you said the goal is to reduce spending, correct?”
“That is correct.”
“Yet earlier you told Representative Wels that the rate of welfare budget cuts would be reduced. In that case, where will the remainder be made up?”
“There are various possible measures. As I mentioned before, the goal of austerity is not only to restore credit but also to secure the cancellation of war reparations.”
“Cancellation (Befreiung), not repayment (Rückzahlung)?”
“Precisely—cancellation. To be frank, Germany lacks the capacity to repay nearly one hundred billion marks in international capital debt and reparations. As the 1923 inflation crisis demonstrated, printing money is not a viable option either. We must acknowledge this reality.”
“So the League of Nations will cancel the reparations?”
“The victorious powers, especially the United States, have already reduced the amount of reparations imposed on Germany on several occasions and have provided generous financial support through the Dawes Plan and the Young Plan. Given that a financial crisis originating in America is now ravaging the world, it is highly likely that the United States will urge the League of Nations to approve the cancellation of German reparations.”
Brüning spoke with considerable confidence. What on earth is he basing that on…? Still, since the West had already accepted Germany into the League of Nations, it wasn’t entirely implausible that they would reduce the reparations to that extent.
“…Yes. I’ve heard enough.”
“Has your curiosity been satisfied, Representative Heinz?”
“For the time being.”
The biggest question I had was actually why he was so certain that austerity would revive Germany, but explaining that would take far too long, and within classical economics the logic was considered perfectly obvious. After discussing the numerical details a while longer, that day’s session came to a close.
The truth was, I was terrible at reading numbers. Since it looked like we would be doing nothing but number games from now on, I should probably bring something to distract myself with…
“I still don’t really understand what the Chancellor is proposing.”
“But the Chancellor’s words aren’t wrong. Without austerity, there is no way to maintain democracy while preserving relations with the West.”
“Even so, if we truly vote in favor of budget cuts, wouldn’t that amount to betraying the working class?”
“The working class is important, of course, but so is peace. There will be time for reform after we overcome this crisis, won’t there?”
“I suppose. Well, Representative Wels and Representative Crispien will have to decide.”
From the conversations I overheard while leaving the Reichstag, it seemed the Social Democrats were also wavering considerably. Hmm… This won’t do. If even half the Social Democrats voted for austerity, passage would be assured. Was there no way to keep the Social Democrats anchored in the opposition…?
“A reply has finally arrived from Moscow, Heinz.”
While I was turning over various worries on my way to the Communist Party headquarters, another piece of good news greeted us.
“Do you remember that emblem? The one on the outer garment—a red background with a white circle and a black swastika (卐, Swastika) tilted at forty-five degrees in the center.”
“Ah, yes. So that’s called a swastika. Did they manage to find out something about it?”
“A report has come in on what they’ve learned so far.”
Thälmann read the letter aloud.
"Investigation reveals that the symbol in question appears to be closely associated with an extra-parliamentary party within Germany: the National Socialist German Workers' Party (Nationalsozialistische Deutsche Arbeiterpartei, NSDAP)."
“!”
Ah, so it exists after all. But Hitler was with the National People’s Party and the Nazis were extra-parliamentary…? In the original timeline the Nazis had seized power around 1933, which meant that by now they should already have become a monstrous party holding roughly a hundred seats.
“National… what did you say? I’ve never heard of that party before.”
“Neither have I. It may have been listed among the extra-parliamentary parties in the election results, but I never looked at it closely.”
Even Thälmann, who had spent years in political circles, seemed unfamiliar with it.
“Do you know anything about it, Heinz?”
“Um……”
Should I tell the truth? But if I told it too straightforwardly, it would obviously sound unbelievable. I’d have to skirt around it somehow.
“The name… does sound somewhat familiar.”
“Well, it does contain ‘Socialist’ (Sozialistische) and ‘Workers’ (Arbeiter), so those aren’t unfamiliar words.”
“But doesn’t the Socialist Workers’ Party of Germany (Sozialistische Arbeiterpartei Deutschlands, SAPD) already exist? Isn’t that the party cooperating with the Social Democrats?”
“That’s the ‘Socialist Workers’ Party,’ whereas this one has ‘National’ (National) in front. It even puts ‘German’ (Deutsche) before that.”
“Isn’t it just an ordinary nationalist group?”
“The Comintern initially thought so as well, but it appears they possess a surprisingly extensive underground network.”
“Oh, really?”
“It was founded right after the Great War by a man named Anton Drexler, according to the report.”
“I’ve never heard that name before.”
This really was the first time I’d heard it. In my previous life I had only known the name of the Nazi Party and hadn’t paid much attention beyond that. But National Socialist German Workers’ Party… National Socialism?
“Ah, now that I think about it…”
“What is it, Heinz?”
“I sometimes pick up newspapers from the National People’s Party or other conservative outlets…”
If my memory was correct—
“I’ve seen the term ‘National Socialism’ (Nationalsozialismus) used in them.”
“Is that true?!”
“I’m not entirely certain, but I recall seeing the word in some editorials.”
“In what context? What did they mean by it?”
“I don’t know. I didn’t read it properly, just skimmed, so I don’t remember clearly.”
“Hmm…”
Thälmann pondered for a moment before speaking.
“Then the next request to the Comintern has become clear. We’ll need to investigate the relationship between the National People’s Party and this ‘National Socialism.’”
“Why on earth would conservatives use the word ‘socialism’ in the first place?”
“For now, everyone should head home. Heinz, make sure you lock the door properly.”
“Yes, Thälmann.”
The party members returned to their lodgings or homes one by one. I climbed the stairs to the second floor where the sleeping quarters were.
The Nazis… National Socialism? Their connection to the existing conservatives.
With all sorts of thoughts swirling in my head, I fell asleep.