Economy without Miracle

The main outlines of the spectacular revival of Western Germany are well known. Despite the legacy of war and the effects of territorial dismemberment and of restrictions imposed by the Allies, Western Germany has succeeded within the space of about a decade in developing a vigorous and expanding internal economy and in taking an increasingly important place in the international economy. Since 1950 its international reserves have risen from about 250 million to 4,000 million dollars, real output per head has grown by about 60 per cent, and the volume of employment has expanded. Its economic performance becomes even more striking when compared with that of several other leading Western European economies, and is summed up in the international strength of the mark.

Yet though the book is permeated by the invigorating glow of a sense of personal triumph, which one would not deny the author, Erhard is nevertheless essentially modest. The success of the German economic recovery is not to be seen as the result of the miraculous activities of some super-planner or superman, determinedly getting things going with the use of the compulsive powers of the State.

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B. S. Yamey

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The main outlines of the spectacular revival of Western Germany are well known. Despite the legacy of war and the effects of territorial dismemberment and of restrictions imposed by the Allies, Western Germany has succeeded within the space of about a decade in developing a vigorous and expanding internal economy and in taking an increasingly important place in the international economy. Since 1950 its international reserves have risen from about 250 million to 4,000 million dollars, real output per head has grown by about 60 per cent, and the volume of employment has expanded. Its economic performance becomes even more striking when compared with that of several other leading Western European economies, and is summed up in the international strength of the mark.

Yet though the book is permeated by the invigorating glow of a sense of personal triumph, which one would not deny the author, Erhard is nevertheless essentially modest. The success of the German economic recovery is not to be seen as the result of the miraculous activities of some super-planner or superman, determinedly getting things going with the use of the compulsive powers of the State.