In the latter part of the decade he contributed to the Social Democratic theoretical journal Die Gesellschaft, through which he was hired by the General German Trade Union Federation (ADGB) as head of statistics and economic advisor.
After the onset of the depression, the government of Heinrich Brüning implemented a harsh austerity programme involving reductions in wages, welfare, and public expenditure, combined with tax increases.
[2] In early 1931 Woytinsky began developing a preliminary version of what would become the WTB plan, proposing the injection of money into the European economy via large-scale public works on an international scale.
[3]: 159 He was supported by the ADGB and began publishing articles advocating his ideas in the union theoretical journal Die Arbeit in June 1931, opening debate over the concept of "active economic policy".
Previous opponents in the union movement including Fritz Tarnow were converted, and the two began to collaborate in promoting active economic policy to combat the depression.
Woytinsky's work in Die Arbeit had sparked wide debate over active economic policy in the party and the unions, and some aspects garnered widespread support.
Fear of inflation was also widespread after Germany's experience with hyperinflation in the early 1920s: Hilferding believed that the inflationary impact of debt financing would erase any positive effects.