The Wirtschaftswunder ( economic miracle ) indicates the rapid economic growth in West Germany (FRG) and Austria after the Second world war.

Rapid growth in Germany

The Wirtschaftswunder takes its source in the massive financial aid received by the country (the Marshall plan), the monetary reform of 1948 which makes Deutsche Mark the German currency instead of the Reichsmark. The long life of the working time, the Full employment and foreign labor also supported the economic advancement, so much so that at the end of the Années 1950, the the Federal Republic of Germany became the second world economic power. Wirtschaftswunder is often associated with the person of Ludwig Erhard, Minister for the saving in 1949 with 1963 under the chancellor Konrad Adenauer.

At the base of this growth the Human capital of the German population, and the economic revival resulting from the rebuilding are also located (phenomenon of revival keynésienne).

The social economy of market - at the origin of the economic miracle?

After the end of the Second world war, in 1945, the German political party CDU is born under the presidency from Konrad Adenauer. The new party is presented in the form of a multi-denominational popular party anti-Socialist .

Reichsmark not having more any value after war, it is replaced by Deutsche Mark the June 21st 1948 in the three Western zones of occupation (the United States, the United Kingdom and France). This reform is decided by German experts, among whom Pr Ludwig Erhard. Each German receives a starting sum (the " Kopfgeld ") of 50 DM, then the exchange is carried out to 1 DM against 10 Reichsmark. On the whole, approximately 93% of the money supply circulating in 1948 are removed. The monetary plan of reform is mainly managed by the the United States. This reform allows an economic consolidation and adhesion the ERP (European Recovery Program, or Economic Rerun routine), also known under the name of Marshall plan. A few days later the transmission of the Documents of Frankfurt takes place. The first document contains the authorization of the 11 heads of government of Länder for the development of an adapted central capacity and the German unit around basic rights. The second document contains the request for modifications of the borders in the zones of the west. The third, it, insist on the requirement of basic principles with an aim of creating a special statute for the zones of occupation. These documents of Frankfurt are regarded as the documents of birth of the Republic fédédale of Germany. A progressive of social order and economic re-establishment follows. In 1949, Ludwig Erhard becomes Minister for the economy and forging mill the concept of social economy of market ( Soziale Marktwirtschaft ).

The social economy of market became, with beginning of the year 50, the principal idea of the policy of the Federal Republic of Germany (FRG). It acts in the beginning of a simple idea, of a concept, which was gradually transposed in the German economy, while becoming even one about it of the principal elements.

The social economy of market consists of a mixture of two systems. It indeed retains free market components as well as more centralized economy. It is posed then like a third choice between little or too many interventions of the State in the economy. The design of the social market economy binds the principle of the freedom of the markets and that of the social compensation. Thus the advantages of the market economy, like those of economic freedom and technological advance, are married with those of the economy centralized like the high rate of employment and the weak variations of the request. On the other hand, of many disadvantages of these two types of economy are gummed like the abuse freedom of the markets. The State there has a strong position, intervenes in the economic decisions for the interest public and is posed as an Co-organizer industrial relations policies and economic. The bases of the system are the principle of coordination and competition; the formation of monopoly is prevented. The base of the thought of the social market economy is the personality; the man is not only regarded here as an individual but also as a social actor (each one must even assume its responsibility towards him and others). The State takes part in the assistance only if the man cannot help itself (principle of Subsidiarité).

Industrial excellence, second source of the " miracle"

Industry German finds its level of pre-war period quickly. In the car, chemistry, the mechanical engineering industry and electronic, etc, its reputation of excellence enable him to remain largely exporting, in spite of high production costs. High level vocational training ensures a long time of the outlets youth. European widening (Airbus) contributes to maintain it at the top worldwide economy.

The crisis of the German model

The German system, after forty years of high efficiency, perhaps reached its limits since the Réunification. It supposed a strong solidarity between employers, often resulting from the world from SME, the work world and the education, centered on technical and vocational training. The concentration and the universalization of the companies encourage the delocalizations, tandis the downturn of industries of labor discourages the traditional systems of formation. Unemployment, almost marginal before 1989, became a reality of mass. The German economy must support the double burden of the retirements, with a population among oldest of Europe, and of the rebuilding of Länder of the East. The capital flight towards tax shelters, like Luxembourg, and the exodus of the easy pensioners towards the sunny climates (Spain especially) involves a loss of revenue for the community.

If the governments Schröder and Merkel temporarily saved the retirement scheme, they did not solve the durable problems of the fall in the birth rate and the investment withdrawal.

In Austria

Austria also profits from the Marshall plan. The Austrian Schilling will be stabilized by a Monetary policy adequate.

See too

• Economic miracle French
• Economic miracle Japanese
• Celtic Tiger

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