The passage in Mein Kampf is an accusation, not a confession. Hitler attributes the technique to his enemies, arguing that the broad masses more readily fall victim to a big lie than a small one, because they themselves tell small lies but would be ashamed to tell colossal ones, and so cannot believe that others would have the impudence to distort the truth so infamously.
The mechanism described is real, and the description is accurate. What it describes is the audience's own honesty being used against them.
Leonard Doob's 1950 analysis in Public Opinion Quarterly, drawn from Goebbels' diaries and the surviving Propaganda Ministry records, sets out the operational doctrine that accompanied it. Propaganda must be planned centrally and executed by a single authority. It must be simple. It must be repeated relentlessly, with a limited number of themes. It must label enemies with distinctive terms. It must be timed so that the audience's attention is not exhausted before the event, and it must appear to arise spontaneously.
Two mechanisms combine to make scale work as a credibility device.
The first is the truth default. Timothy Levine's Truth-Default Theory, developed from decades of deception experiments, holds that human communication presumes honesty as its operating condition — not out of naivety but out of necessity. Verifying every claim is impossible, and the presumption is correct in the overwhelming majority of exchanges. Suspicion is a state we enter when triggered, not our resting condition. A sufficiently large claim does not trigger it, because the audience's own moral intuition supplies the argument: nobody would say that unless it were true.
The second is the ethos smuggled inside the audacity. A modest lie invites a modest check. A colossal one implies a colossal risk on the speaker's part, and risk reads as sincerity.
Then repetition does the rest, which is why the Big Lie and the illusory truth effect are the same chapter viewed from two directions. Goebbels' insistence on a small number of themes repeated indefinitely is the fluency mechanism applied at national scale, and the stab-in-the-back myth — that Germany's army had been undefeated in the field and betrayed by civilians at home — was maintained for two decades until it was simply part of the furniture.
The defensive problem is genuinely hard, and it has a shape worth naming.
Refutation of a large lie requires detail, and detail is slow, and each refutation re-exposes the audience to the claim. Meanwhile the lie is one sentence. This is the same asymmetry as the Gish gallop two chapters from here, and the same asymmetry that RAND identified in the firehose model.
The only defenses that have shown effect are structural rather than argumentative: prebunking before exposure, refusing to repeat the claim in your own framing, and — the difficult one — attacking the source's general reliability rather than litigating each individual falsehood, because the count of falsehoods is a resource the other side controls and your capacity to answer them is not.
Cross-ref: illusory truth chapter