'The spectacular growth of the West German economy in the year 1949 - 1963 was due above all to Ludwig Erhard.' Assess the validity of this view.

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  • growth due to Erhard
    • Agree
      • Erhard was a highly qualified economist who had already gained great experience in running economic affairs under Allied occupation from 1945
        • he became Economics Minister 1949-1963
      • Erhard's 'social market economy' was brilliantly adapted to the economic needs of the time
        • W. G. achieved levels of employer-worker cooperation that were far in advanced of rival economies e.g. UK or Italy
          • Co-Determination Law 1951 reduced tensions so economy improved
      • successful through continuity
        • he was in post long enough for his policies to be thoroughly embedded
      • he was an effective operator within Ad's govt. partly because of his won skills & political popularity that came with his amiable 'rubber lion' personality
      • Investment Aid Law was an efficient way of linking state resources to free business economy
      • work creation schemes estd by Erhard
        • unemployment fell to 0.5%
      • agriculture heavily subsidised
      • continuation of pervious policy (Speer's) meant businesses were able to recover
    • Disagree
      • real key was stable political leadership of Ad.
        • E. found Ad. a difficult & frustrating leader but depended entirely on his ability to dominate FRG politics
      • Ad. extremely clever at 'playing the Cold War card'
        • FRG benefitted massively from US aid & political backing
      • from 1950 FRG benefitted from Schuman Plan & moves towards European economic integration
      • FRG benefitted from aspects of Nazi legacy
        • range of administrative measures introduced by Speer 1942-1945
        • aftermath of Nazism left workers wanting a quiet life & very willing to avoid strikes & industrial unrest
      • G. demilitarised after 1945 & barred from military spending
        • UK spent about 7% GDP per year on armament  & suffered economically
      • outbreak of the Korean War 1950 led to surge in demand to boost G factory output & stimulate growth
      • no colonies to sustain
      • 'brain drain' E --> W so W had labour force
      • Marshall Aid $13.15bn


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