• GERMANIC MIGRATIONS AND
  • FRANKISH KINGDOM
  • JOHANNES REUCHLIN
  • THE WEIMAR CONSTITUTION
  • W
  • INFLATION, REPARATIONS, AND
  • THE STRESEMANN ERA, 19231929
  • STABILIZATION AND LOCARNO,
  • CULTURE AND SOCIETY
  • ROAD TO DICTATORSHIP,
  • T
  • CONSOLIDATION OF POWER
  • THE NAZI TOTAL STATE
  • ULRICH VON HUTTEN
  • PERSECUTION OF THE JEWS
  • RELIGION AND THE CHURCHES
  • FOREIGN POLICY
  • W
  • THE BATTLE OF BRITAIN
  • INVASION OF RUSSIA
  • HITLERS PLANS FOR EUROPE
  • TURNING OF THE TIDE,
  • THE HOME FRONT
  • THE RESISTANCE
  • PHILIP MELANCHTHON
  • D-DAY TO DEFEAT NAZI GERMANY
  • THE HOLOCAUST
  • A
  • ALLIED PLANS AND CONFERENCES
  • DENAZIFICATION
  • POLITICAL PARTIES AND TRADE
  • LOCAL STATE FORMATION
  • PARLIAMENTARY COUNCIL AND THE
  • ECONOMIC RECONSTRUCTION
  • T
  • ERASMUS OF ROTTERDAM
  • BUNDESTAG ELECTION AND
  • REGAINING SOVEREIGNTY AND INTEGRATION
  • RECONSTRUCTION AND THE ECONOMIC
  • TRANSITIONAL YEARS AND
  • THE GRAND COALITION AND YOUTH
  • THE SOCIAL-LIBERAL COALITION
  • OSTPOLITIK (FOREIGN POLICY
  • CULTURE AND SOCIETY
  • SOCIAL STRUCTURE
  • SCHMIDT ERA: SOCIAL UNREST,
  • PRINTING AND MEDICINE
  • THE KOHL ERA, 19821998
  • T
  • UPRISING OF JUNE 17, 1953
  • ECONOMIC SYSTEM
  • SOCIETY, EDUCATION, AND
  • RELATIONS WITH THE FEDERAL
  • R
  • CONSEQUENCES AND PROBLEMS OF
  • ECONOMIC UNIFICATION,
  • P
  • RENAISSANCE ART
  • UNIFICATION POLITICS AND ITS
  • FOREIGN POLICY
  • GOVERNMENT AND ELECTIONS,
  • HISTORICAL DICTIONARY A
  • A
  • Abwehr
  • Adenauer, Konrad
  • Afrika Korps
  • Agadir Incident
  • Agrarian League
  • NEED FOR CHURCH REFORM
  • Agricola, Rudolf
  • Air Force
  • Albert (Albrecht) of
  • Albert V
  • Algeciras, Conference of
  • Allied Control Council
  • Alsace-Lorraine
  • Altdorfer, Albrecht
  • Amiens, Battle of
  • Anabaptists
  • P
  • Anglo-German Naval Treaty
  • Anschluss
  • Anti-Comintern Pact
  • anti-Semitism/Jew hatred
  • anti-Semitism
  • Anti-Socialist Law
  • Ardennes, Battle of the
  • Arendt, Hannah
  • Armed Forces (Wehrmacht)
  • Armed Forces (Bundeswehr):
  • LUTHER AND MELANCHTHON
  • Army (Prussian to 1860)
  • Army (Second Empire,
  • Asylum Law
  • Atlantic, Battle of the
  • Auerstadt, Battle of
  • Augsburg, Diet of
  • Augsburg, Religious Peace of
  • Augsburg, War of the League
  • Augsburg Confession
  • Augspurg, Anita
  • LUTHER AND ZWINGLI
  • Auschwitz-Birkenau
  • Austerlitz, Battle of
  • Austria
  • Austrian Succession, War of
  • autarchy
  • autobahns
  • Axis, The
  • B
  • Baden-Württemberg
  • Ballin, Albert
  • CAROLINGIAN EMPIRE
  • KNIGHTS REVOLT AND GREAT
  • Barbie, Klaus
  • Barmen Declaration
  • Barth, Karl
  • Basic Treaty
  • Bauernschutz
  • Bauhaus
  • Baumer, Gertrud
  • Bavaria
  • Bavarian Peoples Party (BVP)
  • Bavarian Succession, War of
  • REFORMATION AND THE TOWNS
  • Bayer AG
  • Bayreuth
  • Bebel, August
  • Beck, Ludwig August Theodor
  • Beckmann, Max
  • Beer-Hall Putsch of 1923
  • Beethoven, Ludwig van
  • Benjamin, Walter
  • Benn, Gottfried
  • Bennigsen, Rudolf von
  • ANABAPTISM AND MÜNTZER
  • Benz, Carl Friedrich
  • Bergen-Belsen
  • Berghof
  • Berlin
  • Berlin, Battle for (Fall of)
  • Berlin, Congress of
  • Berlin-Baghdad Railway
  • Berlin Blockade
  • Berlin Conference
  • Berlin Wall
  • CALVINISM IN GERMANY
  • Bernstein, Eduard
  • Bethmann Hollweg, Theobald
  • Biedermeier
  • Biermann, Wolf
  • Bismarck, Otto Eduard Leopold
  • blank check
  • Bleichröder, Gerson von
  • Blenheim, Battle of
  • Blomberg, Werner von
  • Blücher, Gebhard
  • CHARLES V AND THE REFORMATION
  • Böll, Heinrich
  • Bonhoeffer, Dietrich
  • Bonn
  • Bormann, Martin
  • Born, Max
  • Borsig, August
  • Bosch, Robert
  • Bosnia-Herzegovina
  • Brahms, Johannes
  • Brandenburg
  • C
  • Brauchitsch, Walther von
  • Braun, Eva
  • Braun, Karl Ferdinand
  • Braun, Otto
  • Braun, Wernher von
  • Brecht, Bertolt
  • Bremen/Bremerhaven
  • Brentano, Elizabeth Bettina
  • Breslau
  • The Bridge
  • THE THIRTY YEARS WAR
  • Britain, Battle of
  • Brüning, Heinrich
  • Buchenwald
  • Bülow, Bernhard von
  • Bundesrat
  • Bundestag
  • Burschenschaft
  • C
  • Canisius, Peter
  • canton system
  • A
  • Carlsbad Decrees
  • Celtis, Conrad
  • Center Party
  • Chamberlain, Houston Stewart
  • Charles V
  • Charles VI
  • Charles VII
  • Charlottenburg, Palace of
  • Christian Democratic Union
  • Christian Social Union
  • LITERATURE
  • Civil Code, German (Revised
  • Clausewitz, Carl von
  • Concordat of 1933
  • Condor Legion
  • The Confederation of the Rhine was a
  • Confessing Church
  • Congress of Vienna
  • conservatism
  • constitutional traditions
  • Counter-Reformation
  • MUSIC
  • Cranach, Lucas, the Elder
  • cultured elites
  • D
  • Daimler, Gottlieb
  • Danish War
  • Danzig
  • Dawes Plan
  • D-Banks
  • D-Day
  • Degenerate Art
  • SAXON AND SALIAN DYNASTIES,
  • SCIENTIFIC REVOLUTION
  • denazification
  • Denck, Hans
  • Depression, The Great
  • Depressions
  • détente
  • Diesel, Rudolf
  • Dietrich, Josef Sepp
  • Diplomatic Revolution of 1756
  • Dix, Otto
  • Döblin, Alfred
  • GOTTFRIED WILHELM VON LEIBNIZ
  • Dönitz, Karl
  • Dresden
  • Droste-Hülshoff, Annette
  • Dual Alliance
  • Dürer, Albrecht
  • Düsseldorf
  • E
  • Edict of Toleration
  • Ehrlich, Paul
  • Eichendorff, Joseph von
  • PIETISM
  • Eichmann, Adolf
  • Eicke, Theodor
  • Einsatzgruppen
  • Einstein, Albert
  • Eisner, Kurt
  • El Alamein, Battles of
  • Elbe River
  • Ems Telegram
  • Enabling Act
  • Engels, Friedrich
  • ROCOCO
  • ENIGMA/ULTRA
  • Enlightenment
  • Erasmus, Desiderius
  • Erfurt Program
  • Erhard, Ludwig
  • Ernst, Max
  • Erzberger, Matthias
  • Eugene, prince of Savoy
  • European Coal and Steel
  • European Defense Community
  • A
  • European Economic Community
  • European Union
  • euthanasia
  • expressionism
  • Falkenhayn, Erich von
  • F
  • Fatherland Party
  • Federal Constitutional Court
  • Federal Republic of Germany
  • Federation of German Industry
  • TURKISH WARS
  • Federation of German Womens
  • feminism, 18151945
  • feminism, 19452005
  • Ferdinand II
  • Feuerbach, Ludwig Andreas
  • Fichte, Johann Gottlieb
  • Final Solution
  • Fischer, Josef Joschka
  • Fischer von Erlach, John
  • Fontane, Theodor
  • WARS OF AUSTRIAN SUCCESSION
  • Four Year Plan
  • Francis II
  • Frank, Anne
  • Frank, Hans
  • Frankfurt am Main
  • Frankfurt Parliament
  • Frederick I
  • Frederick II, The Great
  • Frederick III
  • Frederick III, The Wise
  • STATE REFORMS
  • Frederick William
  • Frederick William I
  • Frederick William II
  • Frederick William III
  • Frederick William IV
  • Free Corps
  • Free Democratic Party
  • Freemasonry/Illuminati
  • French Revolutionary Wars
  • Freytag, Gustav
  • FOREIGN POLICY AND KAUNITZ
  • Friedrich, Caspar David
  • Fritsch, Werner von
  • Fugger, Jacob the Rich
  • Führerprinzip
  • G
  • Galen, Clemens August von
  • Gellert, Christian
  • General Directory
  • Genscher, Hans-Dietrich
  • Gentz, Friedrich
  • JOSEPH II AND REFORM
  • German Christians
  • German Communist Party
  • German Confederation
  • German Conservative Party
  • German Democratic Party
  • German Democratic Republic
  • German Labor Front
  • German National Peoples
  • German Peoples Party
  • German Progressive Party
  • HOHENSTAUFEN DYNASTY,
  • VIENNA AND ARCHITECTURE
  • German Reich (Imperial) Party
  • German Womens Bureau
  • German Workers Party
  • Germany Treaty
  • R
  • FREDERICK III
  • FREDERICK WILLIAM I, THE
  • FREDERICK THE GREAT
  • SEVEN YEARS WAR
  • S
  • ECONOMY
  • POLITICAL DECENTRALIZATION
  • SOCIAL STRUCTURE
  • HABSBURG DYNASTY
  • CULTURE
  • THE ENLIGHTENMENT
  • LITERATURE AND DRAMA
  • PHILOSOPHY
  • SECRET SOCIETIES
  • T
  • R
  • THE ROMANTIC MOVEMENT
  • NATIONALISM AND LIBERALISM
  • EARLY INDUSTRIAL REVOLUTION
  • CITIES AND CRAFT GUILDS
  • REVOLUTIONS OF 1848
  • ARMY REFORM AND PARLIAMENTARY
  • O
  • THE DANISH WAR, 1864
  • AUSTRO-PRUSSIAN WAR, 1866
  • THE FRANCO-PRUSSIAN WAR,
  • COLLAPSE OF THE SECOND FRENCH
  • I
  • N
  • ART AND ARCHITECTURE
  • ORIGINS OF CAPITALISM
  • SOCIAL STRUCTURE AND WOMEN
  • EDUCATION
  • T
  • POLITICAL PARTIES
  • THE KULTURKAMPF, SOCIALISM,
  • FOREIGN POLICY AND ALLIANCE
  • BISMARCKS DISMISSAL
  • WILHELMINE GERMANY
  • T
  • THE QUESTION OF
  • LATE MEDIEVAL CULTURE
  • CONDUCT OF THE WAR
  • PEACE RESOLUTION, REFORM, AND
  • AN UNPLANNED REVOLUTION
  • N
  • POLITICAL PARTIES UNPREPARED
  • A REVOLUTIONARY PATTERN
  • WORKERS AND SOLDIERS
  • KURT EISNER AND REVOLUTION IN
  • A REPUBLIC PROCLAIMED
  • A SEVERE ARMISTICE
  • T
  • ESTABLISHMENT OF A REVOLUTIONARY
  • EBERT MAKES A DEAL WITH THE
  • THE SPARTACISTS
  • INTERPRETATION OF THE
  • A VENGEFUL PEACE
  • V
  • THE GOALS OF THE PEACEMAKERS
  • TERMS OF THE TREATY
  • WAR GUILT AND REPARATIONS
  • DENUNCIATION AND RELUCTANT
  • GERMANIC MIGRATIONS AND
  • ECONOMIC RECONSTRUCTION

    The economic conditions of Germany were terrible, and in 1945 there was not

    much hope of improvement. Industrial production had sunk to one-third of prewar

    levels and food was in such short supply that during the severe winter of

    194647 daily rations were about 1,000 calories. The economic policy of the

    occupation forces were primarily dominated by the aim of destroying Germanys

    Allied Occupation, Democratic Rebirth, Cold War 157

    war-waging potential and acquiring compensation or reparations for their

    wartime losses. U.S. economic planners had some contradictory goals. Their

    list of some 1,210 industrial plants to be dismantled would have reduced German

    industrial capacity to 75 percent of 1936 levels. Yet, if this would have

    been carried out, the other American goal of making their zone economically

    self-sufficient would not have been possible. The winter of 194647 proved

    that German production had to be increased or the western zones would

    become permanent financial liabilities for the United States and Great Britain,

    which itself depended on America for aid. Consequently, only a small number

    of plants were ever dismantled, contrary to the massive number removed

    from the Soviet sector. Simultaneously, the cold war was beginning, and a

    fundamental change in U.S. policy took place as announced by Secretary of

    State James F. Byrnes, who promised a continued military presence in Germany

    and economic aid. The United States and Britain then economically

    united their zones in January 1947 into the Bizone, which was gradually

    administered by the Economic Council, which met in Frankfurt am Main.

    This body made a momentous decision to establish a market economy and

    rejected the system proposed by the Social Democrats, which was based on

    158 Germany

    Ruins of a large

    building after Allied

    bombing in Berlin,

    1945 (Library of

    Congress)

    planning and socialization. One of the market economys most determined

    advocates was Professor Ludwig Erhard, who later served for many years as

    minister of economics.

    In June 1947 the Marshall Plan, or European Recovery Program, was

    announced, through which the United States would fund the economic reconstruction

    of Europe. The western zones received a large addition to the regular

    aid they received. The Marshall Plan helped direct economic planning away

    from nationalization, which was quite popular, toward a free market system,

    and it made the American dollar the dominant currency. It also speeded up,

    however, the division of Germany and Europe until the end of the cold war in

    1989. What further aided economic recovery was the long-planned currency

    reform. On June 20, 1948, the almost worthless reichsmark was redeemed at

    the rate of 10 reichsmarks to one deutsche mark. Every resident was at first

    given 40 of the new deutsche marks (DM) and later another 20. On June 23

    the Soviet Union announced a currency reform in its zone and in all of Berlin.

    The Western Powers declared this measure to be void in their sectors of Berlin

    and introduced the DM there as well. In addition, Ludwig Erhard eliminated

    all economic controls and forms of rationing. These decisions bolstered the

    industrial upturn, which had already begun. Amazingly, by the end of 1949

    prewar levels had almost been reached. The population at first did not benefit

    as much as expected. Shop windows filled up, but prices rose steeply and wages

    were frozen, resulting in rising unemployment.

    Allied Occupation, Democratic Rebirth, Cold War 159

    were   GERMANC   Germany   Party   their   Prussians   army   state   government   became   they   during   Austrian   CHURCHES   French   political   Frederick   Nazis   Social   Hitler   after   against   economic   some   republican