The West German Economy and the Economic Miracle - Germany
- Created by: RConwa_y
- Created on: 25-05-18 11:06
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- The West German Economy and the Economic Miracle
- Why was there an economic miracle in the west?
- Bizonia was created in 1947 and economic policies ante-1949 were reintroduced
- Price controls were removed, which allowed competition again
- Removing controls over wages and production
- Ending inflation through currency reform
- Marginal tax rates reintroduced
- Working increased because of these policies and absenteeism decreased. Industrial production had risen from 51-78 percent between Jun-Dec in Bizonia
- Marshall Aid contributed to 5% of West Germany's economy, marginally helping it
- The Korean War increased the demand for goods from the Ruhr
- Ludwig Erhard introduces "Social market economy", combining government legislation and capitalism to created prosperity for everyone
- Bizonia was created in 1947 and economic policies ante-1949 were reintroduced
- Food production in 1947 was only 51 per cent of that in 1938. Industrial output was only 38 per cent
- There was a gradual realisation that for the European economy to recover, the German economy had to
- Industrial production began to rise, resulting in higher wages. Incomes went up 400 per cent between 1949-63
- Unemployment fell to 0.5 per cent in 1965
- Why was there an economic miracle in the west?
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