Why is Germany's industry so powerful?

Now, the mention of Germany's industrial strength, on the earth is absolutely loud, "Made in Germany" is synonymous with top technology and quality. German industry is not born bull, "Made in Germany" is not born noble. Germany to carry out the industrial revolution time than the British and French countries more than 30 years later. Because of the long division, the German industrialization process is full of ups and downs. 1871 after the unification of Germany, the country is still waiting to be rebuilt, the world market is basically divided up.

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In such an environment, how did German industry grow to what it is today? Today, I invited a few netizens to express their views, analyze and analyze the reasons why the German industry is strong, if you have other views, welcome to leave a message at the bottom of the article to discuss.

1

Netizen happiness zone 2:

German industry is the most powerful in the world, because the German management is the most advanced in the world.

The origin of the world's new industry was in Britain, followed by France. When Germany developed itself behind Britain and France, it was very anxious psychologically and developed its own new industries. As the new industry needed technology and technological development, and Germany had nothing. In order to take a shortcut, they sent many people out to steal the British and French technology, which is the world's first scientific and technological spies.

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At the same time began to learn about scientific and technological research and development. The company emphasized the importance of human resources, and the implementation of a strict management system, and soon had rapid development, and in many aspects of management ahead of the world. So before World War I and II have been very advanced industry, such a large industrial country developed for hundreds of years, many aspects of its world, the strongest country is no longer natural!

2

YF Eternal:

In World War II, Germany, as a defeated country, was first driven out of the capitalist market. According to the "four" policy, i.e. demilitarization, de-Nazification, de-centralization and de-industrialization, Germany was faced with a series of plans to be weakened or even eliminated economically, politically and militarily. According to the "Industrial Restriction Plan" formulated in March 1946, the so-called Morgenthau Plan, Germany's industrial production capacity was to be reduced to 50-55% of its 1938 level, steel production was to be 1/4 of its 1938 level, i.e., to be reduced from 22 million tons to 5.8 million tons, and the chemical industry and heavy machinery were to be reduced to 1/100 of their 1938 levels. down to 1/3 of 1938, cement to 1/2, lathes to 1/10, automobiles to 1/5, textile industry to l/2, only furniture, glass, bicycles and other civilian industries are not restricted. But from the second half of 1948 onwards, the economy of the Federal Republic of Germany recovered rapidly, and by the 11th of 1949 it was close to the level of 1936, and by 1950 it had surpassed it. All industrial production was limited. However, the fact that West Germany was able to leapfrog in just over a decade or so was an advantage that no other country could match. What were the reasons?

One, although West Germany after the destruction of the war, but the strong industrial base retained, which is the basis for the rapid recovery and development of West German industry after the war.

First of all, during World War II, the Allied bombing targets for West Germany were mainly focused on military industry, which was an opportunity for the Allies to update their technology. Weakening military power was far more favorable to them than weakening industrial power. And the British and American air forces, especially the American forces, had the sense to protect some of the companies in order to be able to have power against the Soviets. As a result, the two industrial zones of the Ruhr-Saar, although devastated, were able to resume production after a few months of repair. Henry Morgenthau, in his book "Germany is Our Problem", pointed out that the Ford factory in K?ln had the same "inviolable" rights as the cathedral in K?ln. The automobile factory in Ruseheim, the joint chemical plant in Horst, and the joint metallurgical plant in Salzgitter, Lower Saxony, were not damaged. The chemical industries in the Ruhr and Saarland were damaged but were able to resume production after a few months of repairs. According to the estimate of the U.S. Bombing Command, the result of the bombing was that only 6% of the iron and steel production capacity of the whole of Germany was destroyed, while that of West Germany amounted to 12%. Coal production was reduced by 2%, coke 4%, machine building 15%. Metal-working machine tools were destroyed by 6.5 percent.On December 12, 1945, Colonel Bernstein reported to a panel of the U.S. Senate Armed Services Committee that "75 percent of German industry is intact, and in any case would be easily recovered."

The second point lies in the fact that Britain, the United States and France divided West Germany into three occupation zones and pursued different policies within their respective zones of control. France needed the finished products produced in the Saarland to be shipped back to France as reparations. Britain needed Germany to expand its markets overseas, especially the Ruhr and Atlantic seaports. The United States, on the other hand, needed the support of West Germany to counter the expansion of Soviet power in Europe. East Germany and West Germany were like the respective fiefdoms of the ****productivist-capitalist struggle. In accordance with the policy of "deindustrialization", the Allied Joint Chiefs of Staff issued Policy Directive 1067, which provided for the dismantling of all German military factories and heavy industry factories used for reparations, with a list of 1,600 companies and their equipment. But this policy directive was not implemented in earnest, and in June 1946 U.S. Secretary of State Bernays stated publicly in his Stuttgart speech that "the United States no longer pursues a policy of a strong Europe and a weak Germany." He declared, "Germany is a part of Europe, and if Germany, with its great industries, becomes a slum, the reconstruction of Europe, and especially of Germany's neighbors, will be very slow." July 1947 The Joint Chiefs of Staff create Policy Directive 1779, replacing Policy Directive 1067, stating that "an orderly and prosperous Europe requires the economic contribution of a stable and productive Germany." In August 1947 the British and American dual occupation zones modified their restrictive policies toward West German industry, and on June 1, 1948, Britain, the U.S., and France, along with Holland, Belgium, and Luxembourg, signed a six-nation agreement declaring the city's international control of the Ruhr area. Germany to participate in the European reconstruction program.

The result of the Western countries to implement the policy of fostering the restoration of West Germany's industry, so that West Germany retained the basis of industrial production can be quickly resumed. According to Professor Hamson's estimate, high envy, flat furnaces, steel rolling equipment was dismantled accounted for the entire set up and 10-25%, precision machinery and optical instrument production capacity reduced by 20%, synthetic fuel production capacity reduced by 20%, the chemical industry due to the demolition and loss of production capacity of 6%, the transportation machinery was removed 8%, other industrial sectors loss is not significant. Of the three major industrial zones in pre-war Germany, the Ruhr and Saar were in West Germany, and only Silesia was in the GDR. According to 1946 estimates, West Germany accounted for 63 percent of all German industrial production in 1944, 67 percent of basic materials, 62 percent of means of production, and 60 percent of means of consumption. Thus, after the war West Germany retained a strong industrial base.

The impact of the Marshall Plan on West Germany

In the early postwar period, the biggest problem facing West Germany's economic revival was the lack of funds. As the saying goes, a skillful woman can't cook without rice, and without start-up capital, all is empty talk. And at that time, the livelihood of the people was also a major problem. Without enough to eat, people would not have the energy to work. Under such circumstances, it was even more difficult to revitalize. And the Marshall Plan for West Germany, is the snow in the middle of the charcoal. Marshall believed that the only way to eliminate the expansion of ****productivism in Europe was to restore the European economy as soon as possible. Therefore, through his efforts, 13 billion dollars flowed into West Germany in the form of loans and direct aid for reconstruction. These funds helped to restore industrial and agricultural production, stabilize finance, and expand trade, as well as to promote the renewal of equipment in the chemical, engineering, and steel industries. The program also introduced advanced business management concepts from the United States, which effectively contributed to the blood-forming rebirth of enterprises. By 1956, West Germany had utilized this fund to invest a large 10 billion marks, greatly alleviating the lack of capital. It is estimated that the Federal Republic of Germany, as a result of its participation in the Marshall Plan from 1949, received a per capita subsidy of 140 marks. According to the estimates of the book Foreign Aid of the United States Government, published in Washington in 1952, the United States * * * spent 21.4 billion dollars by 1948, and Britain spent 900 million dollars. This money was spent mainly on the purchase of foodstuffs and very little on production. Much of the proceeds from the sale of this food went to the military authorities for their expenses; some was loaned to German industrialists to finance the resumption of production.

By October 1954, Western Allied aid to West Germany was calculated at $4.4 billion, of which $1.7 billion was given by the United States, $800 million by Britain, and $900 million by the Marshall Plan. Also according to figures published by the U.S. Department of Commerce, from July 1945 to September 30, 1955, the U.S. gave West Germany $3.868 billion in defeated government grants and credits.The government grants and credits given by Britain from 1945-1947 amounted to $900 million. This money was mainly used to restore industrial production. Another statistic we have seen is that in the years 1948-1954 West Germany received $7,298,000,000 from the military occupation authorities and the Marshall Plan, of which $3,852,000,000 was for investment. The money came to West Germany in the form of materials, the proceeds of which were deposited in the Bundesbank, known as the "Equivalent Fund", and then invested in industrial and mining enterprises as capital.

The role of foreign aid in the early years of West Germany's economic recovery was still significant. In 1948 and 1949, foreign aid accounted for 5% of West Germany's national income. 57% of West Germany's imports in 1948-1950 were made possible by U.S. aid. The proportion of foreign payments in West Germany's long-term investment was 2.8 percent in 1949, 10.3 percent in 1950, and 5 percent in 1951, and has been decreasing year by year since then.

Third, "soft power": the use of human resources

After World War II, West Germany retained a large number of skilled workers, a large number of professional and technical personnel did not depleted because of the war, which is a strong intellectual support for West Germany. This was the most precious asset that West Germany retained after the war.

And one study showed that in 1950, West Germany had 100,000 university students enrolled, or 21 for every 10,000 inhabitants. By 1970 there were 410,000 university students, or 68 per 10,000 inhabitants. Again, this was the "immaterial capital" of West Germany's recovery. In order to quickly restore the economy, the West German government attached great importance to investment in science and technology and the development of education. And education has always been Germany's tradition, without good education, there will not be a prosperous Germany.

Of course, another reason that cannot be ignored is the massive influx of refugees from East Germany, which amounted to about one million. In the beginning it may have caused some instability in West Germany. However, soon they became the labor force for West Germany to restore its economy. For one thing, these refugees were cheap labor. They had low wages. As a result, the production cost of enterprises was low, which improved their competitiveness. Second, they relied on their knowledge and technology to restore production. Soon some of them rebuild their factories to produce mainly export products, which is conducive to competition in the international market. Thirdly, their age structure is more reasonable, which is conducive to economic recovery.

Fourth, the innate advantages of geography

West Germany has a considerable geographical advantage, 78% of the mines in Germany, 84% of the metallurgical manufacturing products are produced in West Germany. Before World War II, most of Germany's heavy industry, raw materials industry is concentrated in the west. 1936 West Germany in the country's entire industrial output value accounted for 61%, raw materials and basic materials production accounted for 66%, infrastructure production accounted for 61%. The east, on the other hand, had relatively few. At the same time, West Germany had two major industrial zones, the Ruhr and the Saar. And they are the left arm and the right arm for West German industry. Relatively, West Germany has a strong original industrial base, is the reconstruction of the economy to a high level starting point.

V. "Free Market Economy" and Currency Reform

There is one person who should be mentioned first of all in this issue, that is, Ludwig Erhard, who was the head of the Economic Administration of the Western Occupied Territories at that time. He was a representative of the neo-liberal school of national economics, and was a strong advocate of a free market economy. He believed that real money could function only in a real market, and that a real market should be free of price controls and rationing. Abolish price regulations, abolish product rationing, and introduce a true market economy. This was a successful battle in relation to the entire economic history of Germany. Although the initial phase of the free market economy was characterized by rising prices, unemployment, inflation, etc., the advantages of the market economy soon became apparent. Prices stabilized, even at a much lower rate than in other capitalist countries, and productive forces developed strongly during this period.

Along with the introduction of the free market economy, and with the support of the United States, West Germany also implemented a currency reform. Before World War II, the old Reichsmark was about 17 billion, but after World War II it became 70 billion. Thus, in the latter part of World War II, the old Reichsmark was worthless, and it was American Happy cigarettes that acted as currency on the German market. on June 20, 1948, the American occupation authorities instituted a currency reform in West Germany. Ten old Reichsmarks were exchanged for one one new German mark. Within a few weeks, all securities, savings, bank deposits, mortgages, etc. of the old Reichsmark were exchanged. This was a very harsh exploitation, but it saved Germany. The exchange rate of the German mark for the dollar gradually increased. The stores, which were empty, were once again filled with goods, and people's lives began to take shape.

With the introduction of the free market economy, West Germany faced many problems. The gap between the rich and the poor gradually widened, and the working people at the bottom of the ladder complained a lot. However, Erhard introduced the mechanism of competition, who work long hours, who work efficiently, who will have a job, otherwise is able to face layoffs. Such a competitive mechanism is to rely on the exploitation of the masses of working people to accumulate the most primitive capital. Due to the competition mechanism, capitalists are bent on suppressing wages, from which they get higher profits. However, despite the widening gap between the rich and the poor, the overall social environment in West Germany was in a stable state. Due to the devastation of the war, the people possessed the most urgent desire to repair their homes, to rebuild a new Germany with vitality, therefore, the people of West Germany worked diligently and gave their utmost strength.

Of course, there is another reason that can not be ignored is that West Germany in order to adapt to the needs of the world market, the development of export-oriented economy. West Germany used its strong industrial base and cheap labor to produce products at prices far lower than those of other countries. This made West Germany's foreign trade market develop very quickly, and the import and export trade grew rapidly. in 1950 there was still a trade deficit of 721 million dollars, and by 1960 it had turned into a surplus.

Sixth, the Korean War

Additionally, the Korean War needs to be mentioned. It was a very important opportunity for West Germany. Despite Erhard's strenuous denials, the Korean War did save the West German economy. (Erhard, Prosperity from Competition Business 1983, p. 41). After the outbreak of the Korean War, the U.S. and its allies needed West Germany's supply of weapons and munitions, as well as its participation in the so-called "European defense". As a result, the U.S. had to modify its "reduction policy" towards West German industry and technology, and in May 1950 the Foreign Ministers' Conference in New York decided to replace the ban on the production of shooting, slashing, and stabbing weapons with a restriction on their production, and to lift the restrictions on shipbuilding, and steel production was no longer restricted. Steel production was no longer restricted; in 1950 it was 12.1 million tons, and in 1953 it reached 13.5 million tons. 1954 saw the enactment of the "Resolution on the Supervision of Industry", which further relaxed the conditions for restricting industrial production in West Germany. Previously, the production of synthetic rubber and synthetic fuels was prohibited, and the production of bearings was restricted, but now only their production capacity was regulated. Restrictions on the production of heavy machine tools, aluminum, ammonia and chlorine were lifted, and there were no more restrictions on chemical research.

After the outbreak of the Korean War, a large number of ship orders flew to West Germany for 2 million tons of new tankers and new cargo ships. The Port of Hamburg was the largest port in Germany. The port of Hamburg was severely damaged in World War II, but by 1953, 70 percent of the port had been restored to service. By the 1960s, the German merchant fleet consisted of 2,700 freighters with a total tonnage of 650,000 tons. The Korean War changed West Germany's trade deficit. in 1950 the foreign trade deficit was $3 billion, in 1951 it was $100 million, and in 1952 it was a surplus of $700 million. Observer Theodore H. White said, "The Korean War simply brought rapid and unconditional benefits to the Germans." The Economist noted; "In June 1950, the Korean War knot brought prosperity to the entire trading community."

Taken together, these are the main reasons for the rapid recovery and development of the West German economy after the war. Of course, there are other reasons, such as emphasizing the development of science and technology.

Finally, it should also be noted that in the 1950s, West Germany's economic development was faster than that of other capitalist countries because of its low starting point, which was a result of the war damage and the "deindustrialization" policy pursued by the Allies after the war. By the mid-1960s, the West German "economic miracle" was over, and the development rate fell to the European average of 5 per cent, in line with other capitalist countries.

3

Yuan Fei2:

Industrialization of many countries, and Germany is particularly strong, there are two reasons, one is the level of science and technology at the national level is developed; the second is the national characteristics of self-consciousness to the degree of engraving. Germany is not allowed to cut down trees, the end of World War II, Germany's defeat, no one to manage, people will still only pick up the dead branches of the ground; and after Saddam's death in Iraq, museums are looted, the two are not the same.

4

Netizen of the Buddha's edge of the Y Buddha's edge:

State if the development of a strong and national moral literacy has a lot to do with the country, not that you have money on the country is strong, Germany pays great attention to these in the moral education at the same time as the development of the economy, so that the overall development of Germany into a virtuous cycle in the country you do any job will be respected by the people especially industrial development. Be respected by the people, especially the industrial development, not that you can design a few data industry is strong, which includes the technical staff of the work of the achievement is even greater than the designer's achievements are greater, this is a national holistic things in a sentence or two words can not be understood, we will be Germany and our country in all aspects of the comparison, especially in the respect for this issue to see the attitudes of the two countries will be able to The two countries can be compared in terms of their attitudes towards respect for human beings.

5

Netizen sincerely look at you:

Catch up with the three industrial revolutions, has a strong accumulation of technology, when the powers of industry are very strong, not just Germany. To be strong, Britain and France, which had a lot more colonies than Germany, relied on the bloody plundering of their colonies and had stronger capital and somewhat stronger industry than Germany, while the United States, which was not devastated by the two world wars, was the strongest.

6

Netizen misty lonely shadow 45:

There are too many questions, briefly answer, Germany is a very strong focus on the nation, there is a strong discipline, the combination of these two is suitable for the construction of factories, France scattered, Britain lazy, Russia is more backward, in the run of the industry are not as good as Germany, no matter how refined technology, management, research and innovation are crowned in Europe, Europe is the most conscientious people, therefore, the most serious people. The most serious people in Europe, so the industry is strong, the shortcomings are too focused on the point, but lost in the study of the surface, and therefore the lack of a strategic view, and therefore launched two consecutive world wars, resulting in failure.

7

Netizen Hanyang Lao Wang:

This is relative. Germany was sanctioned before World War II,? Grievance? Song? Song? your daughter?Ψ⒄ ridge 6?During the war the Germans established a perfect industrial system. After World War II, the Germans quickly gained the understanding of Europe and the United States, and helped to develop themselves in the post-war economic development period. At present, our industrial production capacity is very strong in the world. The categories are complete, the system is complete, which is very rare. Germany is strong again, he is only a medium-sized country.

8

Netizen Zhao Xiaolu 1:

One, Germany's science and technology is developed, from the second scientific and technological revolution began the rapid rise of Germany's industry, more than the United Kingdom and France, and became the world's second largest industrial power at the time (the end of the 19th century ~ before World War I).

Two, strong capital and low debt.

Three, Germany's education is developed, emphasis on talent training, high national quality (this is the key).

Four, infrastructure is perfect, transportation is highly developed (the basis for the development of heavy industry).

V. The promotion of the EU as a whole.

VI. export-oriented economic policy.

9

Editor:

After listening to the views of all the above netizens, what is the reason for the strength of German industry in your mind? Welcome to leave a message to discuss!

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(Source: Today's headlines, Zhihu, machine tool business network editorial)