'The Economic Miracle'
During the 1950's, the FRG experienced significant economic growth. Within a decade, the FRG emerged from devastation and ashes to built modern towns and cities. By 1960's, the FRG had become one of the most sucessful Western Economies. In little more than 10 years, the FRG had developed into the world's third strongest industrial state and second in the world trade after the USA.
Marshall Plan helped support the FRG's economic growth and development by sending Marshall Aid. The Marshall Plan also helped stregthen Adenauer's political position and helped to boost morale within the state as it created a feeling of national stability and encouraged economic growth.
The 1948 currency reform contributed to economic growth within the GDR as it sucessfully stopped rising inflation. The FRG also had a vast supply of resources from the Ruhr.
The Korean War in 1950 stimulated demand for steel production for manufacture of weapons for US soldiers, the output of the mechanical engineering almost doubled industry between 1950 and 1952.
There was a constant flow of labour, initially from the GDR, and later from Southern Europe and Turkey. The Guest Workers were on fixed contracts and were very cheap to employ.
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