Fair wages
The expansion of the economy is by no means an end in itself because with the raising of output and the resulting lowering of prices there should be some endeavour to increase real wages. This was achieved in the young Federal Republic of Germany – in marked contrast to the socialist states beyond the Iron Curtain. It is interesting to note that there are never any attempts from the ranks of the employers themselves to raise wages although in times of upswing it would be only fair and in fact essential so that wages and profits remain moderate. The same demand – in reverse – is directed towards the unions. If there is no gain in productivity, then there can be no increase in wages because that would result in employers increasing the price of their products to be able to pay the increased wages – and this is to be avoided at all costs. Price rises and dwindling purchasing power would upset the stability of the DM and as a consequence Germany’s competitiveness.