west german recovery after WW2

• adenauer: chancellor of West Germany [1949 - 1963], democratic
• The Truman Doctrine


  containment: he didn't try and destroy the USSR, but told the Americans it was their duty to stop the spread of communism, promised to support any nation that tried to resist totalitarianism/communist governments. containing the USSR within its current areas and stopping its influence.
• marshall plan


  • $13 billion to capitalist countries to rebuild after WW2.
  • to eliminate the risk of poor, capitalist countries choosing communism due to their lack of economic stability.
  • July 1947
  • West Germany received $1.4 billion.
  • no communists received it = division between east germany and west germany
• formation of bizonia


  • 1947
  • the Allies would work together to support the Germany economy.
  • joining of British and American sectors.
• immediate changes: economic miracle

  • Dr. Ludwig Erhard - economic minister
  • he encouraged investment, research and development for a strong central bank and currency stability.
  • from 1948 - 1964, industrial production increased by 600%
• immediate changes: changes in currency

  • replaced by the Deutschmark which ended inflation.
  • Stalin feared the agreement made at Yalta and Potsdam was being violated by the West, led to the 1948 -49 Berlin Blockade.
• 1960s development: house building

  • 2 million homes built - more jobs created
  • built from taxes being paid by the rich
  • Ministry of Housing rebuilt ruined cities and towns, meant that workers had a decent place to live.
• 1960s development: production of luxury goods


  • cars - Mercedes Benz, Volkswagen
  • Leica cameras
  • high standard of living + welfare provision = higher consumer spending on cars, radios, televisions, French wines + cheeses. this all boosted the economy.
• adenauer: Korean War


  • South Korea was supported by the Allies and the UN
  • economy was helped by the demand for industrial equipment and weapons.
• adenauer: trade with co-determination


  • reduces strikes
  • union officials representing workers, who should be included in the board of directors who ran companies.
  • meant that more workers and bosses could work together more productively
• adenauer: migrant workers


  • guest workers were employed usually from Europe + Turkey
  • cheap labour
  • worked hard to be able to keep their contracts
  • did not have the right to permanent residence
• adenauer: unemployment rates


  • by 1960, 0.4% were unemployed
• adenauer: economic growth


  • government loans
  • recession in 1967
  • agreements with unions to keep wages low.
• adenauer: European co-operation


  • OECC - 1948
  • ECSC - European coal and steel community - 1951
  • caused a 151% boost from 1950 to 1958
  • free movement of goods, labour, services and money
• adenauer: mixed economy / welfare


  • private and state capitals were used to create wealth and aid recovery