The market economy is born
After the war, Germany’s economy was in a sorry state. The first industrial plan made by the victorious powers envisaged restricting capacity in Germany’s industry to 50 per cent of the capacity achieved in 1936.
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The reform and its consequences
The “law on the principles of control and pricing policy after monetary reform“ granted Ludwig Erhard, in his function as Director of Economic Administration, the right to determine which products and services were to be exempted from pricing regulations.
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No power to cartels
A second instance of private interest which is incomparably more serious is the aspirations of the cartels in German industry.
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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.
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No welfare state
The same freedom which develops the forces of all those involved in economic life has to apply to the social sector.
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