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Effects Of Post Ww2 On Germany

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Effects Of Post Ww2 On Germany
Post WWII, the economic situation was very difficult for Germany, as East Germany was captured by the Soviets and West Germany, which is now known as Germany. Partition of the country between West and Soviets created a huge gap within the economy as West specialized in industry and East specialized in agriculture. In order to fix Germany’s economy, United States agreed to finance The Marshall Plan. It is an aid program for Europe of $13 billion, of which $2 billion will go to Germany. However, the amount Germany received was less compared to $2.4 billion that Germany had to pay to their Allies.

Ludwig Erhard, the West German minister, contribution boosted the West Germany economy. Erhard reduced the tax rates, abolished restrictions on prices,
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