He also gave us a short and powerful daily call.
Aftermath of World War II Among the causes can be mentioned the rapid normalization of political relations between former Axis powers and the western Allies. After the war, the major powers were determined not to repeat the mistakes of the Great Depressionsome of which were ascribed to post—World War I policy errors.
The Marshall Plan for the rebuilding of Europe is most credited for reconciliation, though the immediate post-war situations was more complicated. Institutional arrangements[ edit ] Institutional economists point to the international institutions established in the post-war period.
Structurally, the victorious Allies established the United Nations and the Bretton Woods monetary systeminternational institutions designed to promote stability.
This was achieved through a number of policies, including promoting free tradeinstituting the Marshall Planand the use of Keynesian economics. US Council of Economic Advisers[ edit ] In the United States, the Employment Act of set the goals of achieving full employment, full production, and stable prices.
It also created the Council of Economic Advisers to provide objective economic analysis and advice on the development and implementation of a wide range of domestic and international economic policy issues. In its first 7 years the CEA made five technical advances in policy making: Japan and West Germany caught up to and exceeded the GDP of the United Kingdom during these years, even as the UK itself was experiencing the greatest absolute prosperity in its history.
In France, this period is often looked back to with nostalgia as the Trente Glorieusesor "Glorious Thirty", while the economies of West Germany and Austria were characterized by Wirtschaftswunder economic miracleand in Italy it is called Miracolo economico economic miracle. Most developing countries also did well in this period.
Belgian economic miracle Belgium experienced a brief but very rapid economic recovery in the aftermath of World War II. The comparatively light damage sustained by Belgium's heavy industry during the German occupation and the Europe-wide need for the country's traditional exports steel and coal, textiles, and railway infrastructure meant that Belgium became the first European country to regain its pre-war level of output in Economic growth in the period was accompanied by low inflation and sharp increases in real living standards.
However, lack of capital investment meant that Belgium's heavy industry was ill-equipped to compete with other European industries in the s. This contributed to the start of deindustrialisation in Wallonia and the emergence of regional economic disparities.
The economic growth occurred mainly due to productivity gains and to an increase in the number of working hours. Indeed, the working population grew very slowly, the " baby boom " being offset by the extension of the time dedicated to study. Productivity gains came from catching up with the United States.
Among the "major" nations, only Japan had faster growth in this era than France. France by the s had become a leading world economic power and the world's fourth-largest exporter of manufactured products.
It became Europe's largest agricultural producer and exporter, accounting for more than 10 percent of world trade in such goods by the s. The service sector grew rapidly and became the largest sector, generating a large foreign-trade surplus, chiefly from the earnings from tourism.
Italian economic miracle The Italian economy experienced very variable growth. In the s and early s the Italian economy boomedwith record high growth-rates, including 6. This rapid and sustained growth was due to the ambitions of several[ quantify ] Italian businesspeople, the opening of new industries helped by the discovery of hydrocarbons, made for iron and steel, in the Po valleyre-construction and the modernisation of most Italian cities, such as Milan, Rome and Turin, and the aid given to the country after World War II notably through the Marshall Plan.
Japanese economic miracle A transistor radio made by Sanyo in Japan manufactured much of the world's consumer electronics during this period. After Japan's economy recovered from the war damage and began to boom, with the fastest growth rates in the world.
Japan emerged as a significant power in many economic spheres, including steel working, car manufacturing and the manufacturing of electronics. Japan rapidly caught up with the West in foreign trade, GNP, and general quality of life.
The high economic growth and political tranquility of the mid to late s were slowed by the quadrupling of oil prices in Another serious problem was Japan's growing trade surplus, which reached record heights.
The United States pressured Japan to remedy the imbalance, demanding that Tokyo raise the value of the yen and open its markets further to facilitate more imports from the United States.
The nation ranked in the top 15 most prosperous countries.
However, the growth slowed and ended byas the Khrushchev regime poured resources into large military and space projects, and the civilian sector languished. While every other major nation greatly expanded its service sector, that sector in the Soviet Union medicine, for example was given low priority.
Record years Sweden emerged almost unharmed from World War II, and experienced tremendous economic growth until the early s, as Social Democratic Prime Minister Tage Erlander held his office from to Sweden used to be a country of emigrants until the s, but the demand for labor spurred immigration to Sweden, especially from Finland and countries like Greece, Italy and Yugoslavia.
Urbanization was fast, and housing shortage in urban areas was imminent until the Million Programme was launched in the s. United Kingdom[ edit ] The national debt of the United Kingdom was at a record high percentage of the GDP as the war ended, but was largely repaid by A speech by UK Prime Minister Harold Macmillan  captures what the golden age felt like, even before the brightest years which were to come in the s.
Let us be frank about it: Go round the country, go to the industrial towns, go to the farms and you will see a state of prosperity such as we have never had in my lifetime — nor indeed in the history of this country.There have been three distinctive economic epochs in the hundred years following the First World War—the roaring twenties and the Great Depression, the golden age of capitalism and stagflation, and the great moderation and subsequent financial crisis of Jun 07, · Watch video · Pent-up consumer demand, a housing boom and a vibrant manufacturing sector all melded into the economy’s Golden Age.
By the GDP yardstick, the current pace of the expansion pales in comparison. attheheels.com © - Golden Age Promotions Ltd All Rights Reserved. by Mark Schniepp February GDP growth in the 4 th quarter was percent, which is in line with expectations. This amount of economic growth is not too hot and not too cold, and at this point in the economic expansion, it’s actually a decent number.
Outlined in previous sections, in terms of GDP, Germany outperformed the United Kingdom in the Golden Age by a vast amount. Consequently the important question to ask is, what were the causes of such a great difference in GDP between the two countries mentioned, during that period of time.
Notes: Setback year is the pre-War year when GDP was the same as in Recovery year is the year when GDP recovered its highest pre-War level. Reconstruction growth rate is the annual rate of growth of GDP during the period between and the recovery year.
Implied level is relative GDP in compared to highest pre-War level.