The british economic miracle

Aftermath of World War II Among the causes can be mentioned the rapid normalization of political relations between former Axis powers and the western Allies. After the war, the major powers were determined not to repeat the mistakes of the Great Depressionsome of which were ascribed to post—World War I policy errors. The Marshall Plan for the rebuilding of Europe is most credited for reconciliation, though the immediate post-war situations was more complicated. Institutional arrangements[ edit ] Institutional economists point to the international institutions established in the post-war period.

The british economic miracle

West Germany[ edit ] German refugees from the east in Berlin in The fundamental reason for the quick economic recovery of West Germany can be found in the ordoliberal growth model. West Germany had a skilled workforce and a high technological level inbut its capital stock had largely been destroyed during and after the war.

This small capital stock was compounded by the difficulty in converting the German economy to the production of civilian goods, as well as rampant monetary and regulatory problems, leading to an unusually low economic output during the first post-war years. These initial problems were overcome by the time of the currency reform ofwhich replaced the Reichsmark with the Deutsche Mark as legal tender, halting rampant inflation.

This act to strengthen the West German economy had been explicitly forbidden during the two years that JCS was in effect.

The british economic miracle

JCS had directed the U. The british economic miracle Hellera young economist with the U. Previously the tax rate on any income over 6, Deutschmark had been 95 percent.

After tax reform, this 95 percent rate applied only to annual incomes aboveDeutschmark. For the West German with an annual income of about 2, Deutschmark inthe marginal tax rate fell from 85 percent to 18 percent.

War damage in a German city in Saxony in The Allied dismantling of the West German coal and steel industries decided at the Potsdam Conference was virtually completed by ; equipment had then been removed from manufacturing plants in the west and steel production capacity had been reduced by 6, tons.

The very high capital investment rate thanks to low consumption and a very small need for replacement capital investments due to the still small capital stock drove this recovery during the s.

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As noted by the British journalist Terence Prittie in the early Sixties: Today the German working-man leads a comfortable life and wears a well-filled waistcoat. He eats well, and his food — although German cooking lacks the elegance of French — is wholesome and appetizing.

He buys good clothes, and he dresses his wife and children well. He generally has money to spare for television sets, week-end excursions and football matches. And he is not afraid of celebrating occasionally on a grander scale. Any superficial examination of the German townscape, let alone perusal of the statistics, shows that Germany has spent sums on hospitals, libraries, theatres, schools, parks, railway-stations, socially-aided housing, underground railways, airports, museums, and so on which are simply not to be compared with British efforts in this direction.

The british economic miracle

World War II reparations In addition to the physical barriers that had to be overcome for the West German economic recovery, there were also intellectual challenges. The Allies confiscated intellectual property of great value, all German patents, both in Germany and abroad, and used them to strengthen their own industrial competitiveness by licensing them to Allied companies.

Exploitation and Plunder in Postwar Germany" concludes the "intellectual reparations" taken by the U. Marshall Plan Builders in West Berlin working on a project funded with Marshall Aid, Meanwhile, thousands of the best German researchers and engineers were working in the Soviet Union and in the U.

See Operation OsoaviakhimOperation Paperclip. The Marshall Plan was only extended to Western Germany after it was realized the suppression of its economy was holding back the recovery of other European countries and was not the main force behind the Wirtschaftswunder.

Post–World War II economic expansion - Wikipedia

However, often overlooked is the effect of the "unofficial contributions" ofU. These marks were spent within West Germany to buy food, luxury items, beer and cars, as well as entertaining the locals and for prostitutes.

The last repayment was made in June At the time West Germany had a large pool of skilled labour, partly as a result of the deportations and migrations which affected up to This helped West Germany to more than double the value of its exports during and shortly after the war.

Apart from these factors, hard work and long hours at full capacity among the population in the s, s and early s and extra labour supplied by thousands of Gastarbeiter "guest workers", since the late s provided a vital base for the sustainment of the economic upturn with additional workforce.

The East German economy also showed strong growth, but not as much as in West Germany, due to the bureaucratic system, emigration of working-age East Germans to West Germany and continued reparations to the USSR in terms of resources. Unemployment hit a record low of 0. Austria[ edit ] Moserboden reservoir, Kaprun, Austria was also included in the Marshall Plan and can thus be included in any consideration of the Wirtschaftswunder.

Using West Germany as a guide, the currency was stabilised when the Schilling was reintroduced in place of the Reichsmark. By state major projects such as the Kaprun hydroelectric plant or the West Autobahnunemployment fell and social peace was ensured.

In the s the first Gastarbeiter from Southern Italy and Greece arrived in the country, as more manual labour was required to maintain the economic upswing.Believers in a British economic miracle have their own favourite facts: Britain now attracts more foreign direct investment than China and about 30% of all the FDI going into the European Union; Britain's unemployment rate, at %, is a good deal lower than France's or Germany's; and the long-term state of Britain's public finances looks a lot healthier .

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Wirtschaftswunder - Wikipedia

The digit and digit formats both The government argued this reinvigoration of the British economy would enable a faster rate of economic growth, and overcome the years of under achievement. The Lawson Boom – The Miracle that never was.

Nationalise the Bank of England (BoE) and Legislate for it to Promote British Economic Development All of the economic miracle economies — Manchuria during the ss, FDR’s USA Britain's Economic Miracle: Myth or Reality? - Kindle edition by Nigel Healey. Download it once and read it on your Kindle device, PC, phones or tablets.

Use features like bookmarks, note taking and highlighting while reading Britain's Economic Miracle: Myth or Reality?.Manufacturer: Routledge. The Ten Commandments For Creating an Economic Miracle in the UK or Elsewhere and Legislate for it to Promote British Economic Development All of the economic miracle economies — Manchuria.

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