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Podcast: History Unplugged Podcast
Episode: How Economies Bounce Back From Total Collapse: The German Economic Miracle (1948-1957)
Description: After World War II the German economy was a smoldering ruin. Scorched-earth policies destroyed 20-70% of all houses. Factories, hospitals, and schools were bomb craters. Germans only ate 1,000-1500 calories a day. There was no food in the stores because price controls disincentivized shop keepers and farmers to sell anywhere except the black market.But something happened in 1948 that changed everything. Revolutionary market changes were introduced by Minister of Economics Ludwig Erhard that overnight caused stores to re-open, factories to fire up, and delivery trucks to clog the streets. In a year, food production and domestic output skyrocketed...