Who was Ludwig Erhard?
Ludwig Erhard grew up in Fürth and became an economist. He kept out of the Nazi party. Once the war ended, he served as economics minister of Bavaria and then ran economic affairs in the Western occupation zones. In June 1948, the same month a new currency was launched, he lifted rationing and freed most prices. When the Federal Republic was formed he became economics minister, a job he kept until 1963, and the booming economy made him a national figure. He added the title of vice chancellor in 1957. After Konrad Adenauer retired in 1963, Erhard became chancellor. His coalition collapsed over the budget, and he resigned in 1966.
Political views
- Scrapped rationing and most price controls in 1948 on the grounds that prices set by the market, not by administrators, should direct goods to buyers.Source: hdg.de
- Wanted private initiative to lead the rebuilding, limited by rules to prevent monopolies, cartels and too much economic power in a few hands.Source: encyclopedia.com
- Named general prosperity as the purpose of economic policy, and gave that title to his 1957 book.Source: bundeskanzler.de
- Thought the market already did social work, and so supported only a minimum of welfare legislation.Source: en.wikipedia.org
- In the chancellery he put close ties with the US and Israel first, and he opened trade offices in a number of Eastern Bloc countries.Source: bundeskanzler.de
- Chose to cut the budget when West Germany hit its first postwar downturn in 1966.Source: hdg.de
- Held his course in 1948 through protests and strikes, and survived an SPD motion of no confidence in the Bizone's Economic Council.Source: hdg.de
- Took over as chancellor in 1963 with a promise of moderation and understanding.Source: hdg.de
Legacy
Many call Erhard the architect behind West Germany's economic miracle, and market-liberal economists and the foundation named for him still hold him up as an example. His model became official CDU policy in 1949, and Germany's government says that for years he was the most loved politician in the country. His critics point out that he once worked at a consumer research institute that served the Nazi state. They add that his competition law was weakened by deals in 1957. Most historians rate him lower as chancellor than as economics minister.