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The Economic Policies Of West Germany In The 1950s

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The Economic Policies Of West Germany In The 1950s
The economic policies of West German government in the 1950s would have allowed for the average, middle-class, German citizen to purchase the Volkswagen Beetle. West Germany was prosperous, stable, and moving forward with their policies opposed to their neighbor-East Germany. After the war the West recovered with what is usually regarded as the “economic miracle” that allowed for such purchases, like the car, to occur. When the war ended and the Reich made their declaration of unconditional surrender, the Allies had to come together to separate Germany into four zones to prevent an uprising similar to the Nazi’s. The individual zones were in different areas, but responsible to maintain the new, fractured Germany. The West occupied Germany …show more content…
Germans on the western side of the Elbe have enjoyed democratic freedoms, unprecedented political stability, economic prosperity, and genuine international respect” (Orlow,pg.260). We have to take into account everything that led up to the “economic miracle” of West Germany in the 1950s. Germany was divided and unrecognizable after World War II, so the Americans instituted a free-market economy that was followed in suit by Great Britain, and a stable currency to have money flow into the new economy that needed to be created to make Germany self-sufficient. With America being viewed as a catalyst to the boom, West Germany opened a limitless market “for civilian goods and, provided production was sufficiently high, and almost total absence of inflationary pressures” (Orlow,pg.268). This allowed for creative entrepreneurs to shine during this period and add to West Germany’s economy. With entrepreneurs seeing their opportunity to flourish in this new economy, there was also a boom in massive investments to modernize publicly owned enterprises, such as the post office and railroads. The U.S. helped as much as possible so West Germany could be a prosperous country, but with the Erhard as chancellor West Germany became a “social market economy” (Orlow,pg.269) that benefitted almost all West Germans. Unemployment had dropped, housing was becoming available again, and for those who still needed help had government assistance. 1950’s West Germany implemented reforms and policies that helped them significantly and brought normalcy to West German

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