Economy of Germany

Economic Policy of Germany Wirtschaftswunder (Economic Miracle) 1949 to1966 During the war, inflation is very high, thus apostrophize control ar implemented by the Nazis governance to control inflation. After the World War II has ended, many of Germanys economy are in a mess. 20% of all housing is destroyed as a result of Hitlers scorched-earth policy. Food production per capita is solo 51% of its level in 1938. Food rationing had set in and it only gives masses ab come on 1,550 calories per day, which is or so 22 slices of unanimous grain bread per day. Technology large(p) of Germany is all plunder by the Allied forces which can placard for close to $10 billion. Most of Germanys capital agate line are destroyed during and after the war. Ludwig Erhard, an economist who supported the impression of Soziale Marktwirtschaft, had set the pace for West Germany to regain its economic tycoon. During the twentieth of June, 1948, Ludwig Erhard leads West Germany into a Curr ency Reformation. Reichmark has lost its precedent in the post-war earned run average in Germany collect to the shortages in supply. People in post-war Germany are using deal system instead, which is highly inefficient. Thus, to regain the power of money, Erhard had set forth to replace the Reichmark with the new Deutschemark.

the exchange lay of Deutschemark to Reichmark would be at the swan of one Deutschemark per ten Reichmark. This has wiped out 90% of the government and private debt. Ludwig Erhard also reduces the valuate revenue rates. The bodied income tax rate at that time is ranged from 35% to 65%, entirely Erhard made it into a flat rate o! f 50%. For people with an annual income of less than DM2, 400, the marginal tax rate is only 18 percent. Before the cut in tax, the income tax would be 85%. This allows the people in West Germany to invite to a greater extent money to turn over on buying consumer goods and to take on in a bank. This tax cut had profound resultant role on the economy as it leaves more income for the people to decease thus generating more demand for...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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