German economy

“ In organizing the German Economy, primary emphasis shall be given to the development of agriculture and peaceful domestic industries.
14. During the period of occupation Germany shall be treated as a single economic unit. ”

“ The national economy of the German Democratic Republic is based upon the socialist ownership of the means of production. It develops in accordance with the economic laws of socialism on the foundation of socialist relations of production. The socialist relations of production came into being as the result of the struggle against the economic system of monopoly capitalism, the aggressive and adventurous policy of which has hitherto brought only disaster to the German nation. ”

“ The quality of statistics from eastern Germany is improving, yet many gaps remain; the federal government began producing all-German data for select economic statistics at the start of 1992. The most challenging economic problem is promoting eastern Germany's economic reconstruction - specifically, finding the right mix of fiscal, monetary, regulatory, and tax policies that will spur investment in eastern Germany - without destabilizing western Germany's economy or damaging relations with West European partners. ”

“ They cite the increasing preference of German companies to locate manufacturing facilities - long the strength of the postwar economy - to foreign countries, including the US, rather than in Germany, so they can be closer to their markets and avoid Germany's high production costs. The conditions under which European economic integration - especially movement toward a single European currency - will proceed will be another key issue facing Germany in the next few years. ”

“ Even at the last session of the previous Reichstag the benefits of insurance were extended to a large portion of the population. The same social spirit with which the work has previously gone forward must prevail even further. For development does not stand still.
The finances of the realm have attained a firm position. On the basis of definitely calculated contributions from the states, we have succeeded in establishing a balance in the imperial economy, and by the help of the surplus which resulted we have relieved the excess of the budget. ”

“ If we now superadd coals or cottons on the side of England, and wine, or corn, or timber, on the side of Germany, it will make no difference in the principle. The exports of each country must exactly pay for the imports; meaning now the aggregate exports and imports, not those of particular commodities taken singly. The produce of fifty days' English labour, whether in cloth, coals, iron, or any other exports, will exchange for the produce of forty, or fifty, or sixty days' German labour, in linen, wine, corn, or timber, according to the international demand. ”

“ The groundwork must be laid in Germany itself, for a healthy economy, in which the German disease will have less ground to fester and in which our own efforts to make the probationary period a successful one can best function. Economic conditioning for the educational process is vital. ”

“ For example, let us revert to the first case, that in which the demand for cloth in Germany is so little affected by the rise of price in consequence of the tax, that the quantity bought exceeds in pecuniary value what it was before. As the German consumers lay out more money in cloth, they have less to lay out in other things; other money prices will fall; among the rest that of linen; and this may so increase the demand for linen in England as to restore the equilibrium of exports and imports without any passage of money. ”

“ Everything will take place precisely as if the third country had bought German produce with her own goods, and offered that produce to England in exchange for hers. There is an increased demand for English goods, for which German goods have to furnish the payment; and this can only be done by forcing an increased demand for them in England, that is, by lowering their value. Thus an increase of demand for a country's exports in any foreign country, enables her to obtain more cheaply even those imports which she procures from other quarters. ”

“ England will sell the whole 1,200,000 at the German values; and will still gain the whole advantage of the trade. But if the transfer makes up more than the 200,000, England will have more cloth than 1,200,000 yards to offer; n will become greater than m, and England must part with enough of the advantage to induce Germany to take the surplus. ”

“ Having gained political power, the conspirators organized Germany’s economy to give effect to their political aims.
1. In order to eliminate the possibility of resistance in the economic sphere, they deprived labor of its rights of free industrial and political association as particularized in paragraph (D) 3 (c) (1) herein.
2. They used organizations of German business as instruments of economic mobilization for war.
3. They directed Germany’s economy towards preparation and equipment of the military machine. To this end they directed finance, capital investment, and foreign trade. ”

“ Truth will hew a way for itself—mightily, irresistibly, like an avalanche. Whoever does not close his ears to it against his better judgment must admit that, during my twenty-six-year reign previous to the war, Germany's foreign policy was directed solely to the maintenance of peace. Its one and only aim was to protect our sacred native soil, threatened from the west and the east, and the peaceful development of our commerce and political economy. ”

“ By breaking the power of the monopolies and big landowners, and by abolishing the capitalist profit economy, the source of war policy and the exploitation of man by man was swept away.
⁠Socialist ownership has stood the test. ”

“ Organization of economic life must conform to the principles of social justice; it must guarantee to all an existence compatible with the dignity of man.
(2) It is incumbent upon the economy to contribute to the benefit of the whole people and to the satisfaction of its wants and to insure that everybody will obtain, in accordance with his performance, a just share in the yield of production. ”

“ The free trade unions, organized in the Confederation of Free German Trade Unions, are the all-embracing class organization of the working class. They safeguard the interests of the workers, office workers and intelligentsia through comprehensive co-determination in the state, the economy and the social sphere. ”

“ On the other hand, it would be risky to point to the internal prosperity of Germany and the vast growth of her exports as proofs of the soundness of protectionist theories. The marvellous growth of that prosperity is very largely due to the natural richness of a great part of the country, to the intelligence, energy, and foresight of her people and their rulers, and to the comparatively backward state of German industry and commerce up to the year 1870. Far on into the Nineteenth Century, Germany was suffering from the havoc wrought by the Napoleonic wars and still earlier struggles. ”

“ Just as when a man is working a farm there is in normal years an increment or accretion of wealth or income to him above the cost of the production of the products of the soil which he sells, there is such an annual increment to the wealth of each country taken as a whole. Some experts have told me they calculated that, at the outside, in prosperous peace times the annual increment of German wealth is ten billion marks. ”

“ In Germany one may study the development of imperialism, crowded as it was into the shortest possible space of time, in concrete form. The unprecedented rapidity of German industrial and commercial development since the foundation of the Empire, brought. out during the 80s two characteristically peculiar forms of capitalist accumulation; the most pronounced growth of monopoly in Europe and the best developed and most concentrated banking system in the whole world. ”

“ Germany is an immense factor in world economy, not only as a producer but also as a consumer. We certainly have a great market for our goods. But we are not only seeking markets; we are also the greatest buyers. ”

“ But in Germany, as in Austria-Hungary, our goods continue to hold their own, and the 'overshadowing competition of the United States' is regarded by German economists as of grave importance to the future of German industry and commerce. ”

“ The German Empire had to pay for its imported foodstuffs and raw materials with the products of its mines and factories, with the services of its citizens and its ships, with the use of its surplus funds, or capital.33 The development of a German export trade was the natural outcome48 of the development of German industry. ”

“ The wealth of the German people amounts today to more than seventy-five thousand million dollars, as against about fifty thousand million dollars toward the middle of the nineties. These solid figures summarize, expressed in money, the result of the enormous economic labor which Germany has achieved during the reign of our present Emperor. ”

“ Able financial experts devote pages of good white paper and pounds of ink in England and America to criticism of the German industrial banking system, but whatever may be its faults at home, it is beyond cavil almost entirely responsible for the tremendous gains made in German and foreign commerce in recent years.
Nowhere is this illustrated more forcibly than in Russia, and here as elsewhere the class of goods sold by the Germans contains larger elements of labor and profit than the foreign trade of most nations. ”

“ In the trade, therefore, to which those regulations confine the merchant of Hamburg, his capital can keep in constant employment a much greater quantity of German industry than he possibly could have done in the trade from which he is excluded. Though the one employment, therefore, may to him perhaps be less profitable than the other, it cannot be less advantageous to his country. It is quite otherwise with the employment into which the monopoly naturally attracts, if I may say so, the capital of the London merchant. ”

“ I now hold it to be the duty, my Reichstag Deputies, of every German man and every German woman to comprehend the conduct of the Reich’s economic policy. In the cities and in the countryside you have to consider in particular that Germany’s economic policy is not based on some sort of financial theory, but rather on a very primitive understanding of production, on the realization that the sole determining factor is the quantity of goods produced. ”

“ While Great Britain, and in a lesser degree France, distracted by parliamentary strife or intent on domestic reforms, left trade and commerce to private initiative and the law of supply and demand, the German Government watched over all big commercial transactions, interwove them with political interests, and regarded every mark invested in a foreign country not merely as capital bringing in interest in the ordinary way, but also as political seed bearing fruit to be ingathered when Der Tag should dawn. ”

“ Under their supervision, and mainly at their initiative, Germany has passed in less than a century to the régime of modern capitalistic competitive enterprise, moderated by the State, out of the dominion of those local and guild restrictions which so long held economic activity in corporate bonds. ”

“ Not only had manufacturing and mining made rapid progress, but banking and commerce too. The Fuggers and the Welsers of southern Germany were great promoters and financiers, with interests extending over all Europe, from which they drew enormous wealth. German merchants showed the most enterprise and energy of any north of the Alps; they distributed among other countries of the Continent the Levant wares which they secured from Venice, and they controlled the commerce of the West of Europe with the North and East. ”

“ German merchants of this period had more free capital, more business ability and greater energy than the merchants of any other country. Germany’s weakness was political. The payments which merchants and other Germans made in the form of taxes and loans to political authority did not form a single fund which could be used for furthering German interests at home and abroad. ”

“ But we need not wonder that the great increase of trade in our newly united Fatherland has disquieted many people in the world. I, nevertheless, believe that in the domain of commerce competition is healthful; it is necessary in order to spur on states and nations to new achievement. Indeed, it is the same thing with sports, as we have seen to-day at the magnificent race-course, where before the eyes of thousands of Hamburg’s men and so many of her beautiful women the officers of my army rode in competition. ”

“ The Germans are born business men, more than any others in the world. Even before the beginning of the Thirty Years' War, Germany was perhaps the greatest trading Power in the world, and in the last forty years Germany's trade has made marvellous progress under the renewed expansion of her political power. Notwithstanding our small stretch of coast-line, we have created in a few years the second largest merchant fleet in the world, and our young industries challenge competition with all the great industrial States of the earth. German trading-houses are established all over the world ”

“ The wealth of the German empire has grown in a far greater area than its population, it having developed into the most active manufacturing country in Europe. Agriculture has similarly advanced, and one of its chief products, that of the sugar beet, has enormously increased, beet-root sugar being among its chief industrial yields. In addition, Germany has grown to be one of the most active commercial nations of the earth. ”

“ Where find markets for the goods? German merchants, and not Prussian militarists, began to spread abroad in Germany the idea that there was a world equilibrium, as important to the future of the nations of Europe as was the European equilibrium. Germany, looking out over the world, saw that the prosperity of Great Britain was due to her trade, and that the security and volume of this trade were due to her colonies. ”