Reasons for the economic miracle

MARSHALL PLAN.

• Confidence for investment.
• Adenauer in stronger position.
• National stability.
• GDR received less Marshall aid than most countries.
• Not the sole reason for economic miracle: 16 countries received the aid.

SOCIAL MARKET ECONOMY.

• Ministry of Housing: tax incentives for companies and rebuilt infrastructure.
• 19 50s: full employment in FRG. unemployment at 0.5%.
• Free markets could operate, worker's rights strengthened at same time.
• Limited state intervention in economy.

OVERALL PROSPERITY.

• Generous social welfare meant higher living standards.
• 19…