What was the major problem facing Germany's economy after the Second World War?.
Many problems faced Germany's economy after the Second World War. There was an obvious cause affect to its post war economy. "Severe bombing paralyzed the cities." Water mains were broken, the industries main infrastructure was shattered, and when all was said and done 14 billion cubic feet of rubble was what was left of Berlin. Most communication and transportation was stopped and raw materials were mostly inaccessible. Industry came to a virtual standstill. .
After world war two Germany was split up four ways. The U.S.S.R., U.S., U.K., and France split Germany, as well as Berlin although it was deep in Russian territory. Their main purpose in occupying these territories was to exercise control over Germany so they would not raise any conflict in Europe again. This hurt Germany's economy harshly. The government closed all bank accounts, not just temporarily but permanently. This made all the social classes come together. The government also moved extremely slow, in turn slowing the economy. Just as the economy started to recuperate the iron curtain, led by Churchill, fell and re-split the country in 1949.
This four way government in Germany passed a Wholesale Land reform, which made German farms small and uneconomic. This reform stated that no farm be larger than 250 acres, although most were made to be smaller. Not only was this land taken from them but all the land the Nazi's or war criminals owned was taken without reparation and made into public works.
At this time industrial production was at a halt. Most German factories, no matter what the purpose were bombed. If these factories were not bombed they were taken apart by their new occupants and shipped to the original country of the occupants. Raw materials were also mainly inaccessible. Most mines were collapsed by war above.
The country was damaged to the point where most communication and transportation was unusable.
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