The boom phase
Germany entered a phase of high-level economic activity mid-1954. The unemployment rate dropped and there was almost full employment in the summer of 1955. However, this intrinsically pleasing situation brought problems it its wake. The demand for manpower could not be met. Some enterprises sent agents throughout the country to lure the most competent workers away from other companies – a danger signal for anyone striving for a stable wage and pricing policy. There were attempts to counteract the problem with rationalisation measures. The investment ratio rose to an impressive 27 per cent; almost one third of the national product was spent on investments. Wages, too, rose by almost 7 per cent in 1955 and, last but not least, the population contributed to the boom with its high propensity to save. At the beginning of 1956, Germans had paid around DM21bn into savings accounts.