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RavenRakeRook t1_j4cmu1o wrote

Reply to comment by Gl0balCD in Was the Weimar Republic really meant to go down? by DaslolligeLol

Using a CPI or GDP deflator index doesn't really work well over such a long time frame. There's been different monetary regimes both in the US and in Germany at that time. You have to look at it as an underwriting of whether the govt could pay and the economy could be taxed. CPI in the US is corrupted a long time ago for political minimization. So whenever I see John D Rockefeller was worth $x billion in today's dollars or a 1890 house was cost $y in 2022 dollars it doesn't really compute. You have to look at average wages and average product prices to get proper proportionality.

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Gl0balCD t1_j4cxwlu wrote

I agree. I just threw in an estimate from a source that has honestly no validity as a reliable source. I totally agree about the problems with using CPI, you should always use a variety of measures such as proportion to GDP or purchasing power. Any historical estimate is going to be questioned because all methods produce different results and each have both advantages and disadvantages. I've seen graphics that have put Mansa Musa or Julius Caesar as the richest person in history, but you can't ever make an apples to apples comparison

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RavenRakeRook t1_j4d6ypl wrote

Economist Keynes's book, The Economic Consequences of the Peace, 1919 (haven't read it) is my go-to as the hyperinflation didn't set in until 1920-23. Quoting Keynes per Wiki:

>I cannot leave this subject as though its just treatment wholly depended either on our pledges or on economic facts. The policy of reducing Germany to servitude for a generation, of degrading the lives of millions of human beings, and of depriving a whole nation of happiness should be abhorrent and detestable, – abhorrent and detestable, even if it was possible, even if it enriched ourselves, even if it did not sow the decay of the whole civilized life of Europe.

When Money Dies mentions that the Nazis rose during the hyperinflation, but once a new Rentenmark in Nov 1923 stabilized the currency, the Nazi's appeal faded away --- until the Great Depression destabilized Germany again.

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