Page 61 - The Making of the German Post-war Economy

34 THE MAKING OF THE GERMAN POST-WAR ECONOMY

Economy; to equate the latter with a Command or Centrally Planned
Economy is rather misleading. However, Erwin von Beckerath did not
develop the distinction between the two, and also Blumenberg-Lampe
19
frequently uses these terms without differentiation. However, a Centrally
20
Administered Economy required above all an administrative organisation,
which would not exist in the aftermath of the war. Additionally, direct
control would conflict with the private and corporate initiatives essential
for the stimulation of a market economy. Thus a Centrally Administered
Economy was not believed to meet the requirements of the time. In
21
rejecting the above-described economic models, the AG EvB sought to
combine the two systems in such a way that the respective advantages of
each were employed without having to accept either’s disadvantages.
22
Taking into account the conflicting claims of personal freedom and social
orientation in times of pressing economic needs, the concept of mittelbare
Wirtschaftssteuerung (Indirect Economic Control) was proposed. This
23
supposed market-compatible government practice, i.e. any stimulation or
interference should not eliminate the proper functioning of market forces,
was embodied by a so-called ‘marktliche Wirtschaftsordnung’ (Market
Economic Order). In this connection, the liberal and simultaneously social
economic order safeguarded by a strong state not only represented social
balance but required the active participation of society. Thus it was
essential to address not just elites, but also much more importantly the
general public in order to anchor this economic conception.
Immediately after the collapse of National Socialism, the members of
the AGEvB endeavoured to submit their reports to the American and the
French military authorities. In particular Adolf Lampe made the effort to
win over to their ideas the United States’ Military Government for
Germany situated in Frankfurt-Hoechst. Eventually, the head of the
economic section, Colonel Gilchrist, commissioned a study from the
AG EvB on inflation control, and announced that cooperation would begin
with the working group. Due to spatial separation and the difficulties of
travelling in a time of occupation, however, only the Freiburg economists
Lampe, von Beckerath, and Eucken were able to convene to formulate
their monetary report entitled Währungssanierung durch Kaufkraftabschöpfung
mit anschliessender Geldumlaufsauffüllung (Reorganisation of the Finances by
Absorption of Buying Power followed by Increasing the Circulation of
Money) in Freiburg on 3 and 11 August 1945 respectively. Although
24
General Clay repeatedly dispatched officers to Freiburg in order to discuss
this report, the cooperation between the German economists and the
25
American authorities ended abruptly without explanation in November
1945. Another group of economists in Munich, namely the
Volkswirtschaftliche Arbeitsgemeinschaft für Bayern (AGVWB) (Economic