Ludwig Erhard

Ludwig Erhard was a German politician and economist who played a key role in West Germany's postwar economic recovery and development. He was the first minister of economics under Chancellor Konrad Adenauer from 1949 to 1963, and then succeeded him as chancellor from 1963 to 1966. He was also the leader of the Christian Democratic Union (CDU) from 1966 to 1967. Erhard was born in Fürth, Bavaria, on February 4, 1897. His father was a Catholic clothing store owner and his mother was a Protestant. He studied economics at the University of Frankfurt and joined an economics research institute in Nuremberg. He served in the Imperial German Army during World War I and was wounded several times. He married Luise Schuster in 1923 and they had one daughter, Elisabeth. During the Nazi regime, Erhard avoided any involvement with the party and continued his research work. He also secretly developed plans for a postwar economic system based on free-market principles and social welfare. After the war, he was appointed by the Allied occupation authorities to oversee the reconstruction of industry in the Nuremberg-Fürth area. He then became the economics minister for Bavaria, the director of the Advisory Committee for Money and Credit, and the director of the economic council for the joint Anglo-U.S. occupation zone. In 1948, Erhard implemented a currency reform that replaced the Reichsmark with the Deutsche Mark and abolished price controls and rationing. This sparked a rapid economic recovery that became known as the "economic miracle" or Wirtschaftswunder. He also advocated for a "social market economy" that combined free enterprise with social policies to ensure fair competition, social justice, and a stable currency. In 1949, Erhard became the first minister of economics of the newly founded Federal Republic of Germany under Chancellor Adenauer. He was instrumental in shaping West Germany's economic policy and integrating it into the European Economic Community (EEC) and the North Atlantic Treaty Organization (NATO). He also supported the rearmament of West Germany and its participation in NATO's defense system. In 1957, Erhard was appointed as vice-chancellor and became Adenauer's designated successor. He faced some opposition from within his own party and from Adenauer himself, who tried to undermine his authority. Erhard finally became chancellor in October 1963, after Adenauer resigned amid a scandal involving a former Nazi spy. As chancellor, Erhard faced several challenges, such as a budget deficit, a recession, a coal miners' strike, a diplomatic crisis with France over NATO's nuclear policy, and growing social unrest among students and workers. He also had to deal with Adenauer's constant criticism and interference. His popularity declined and his coalition partners withdrew their support. He resigned as chancellor in November 1966 and was succeeded by Kurt Georg Kiesinger. Erhard remained as honorary chairman of the CDU until 1967. He continued to be active in public life as a member of parliament until his death. He died of heart failure in Bonn on May 5, 1977. He was buried at Bergfriedhof Gmund am Tegernsee in Bavaria. Erhard is widely regarded as one of the most influential figures in postwar German history and one of the founding fathers of the European Union. He is credited with creating a prosperous and stable social market economy that enabled West Germany to become a leading industrial nation and a model of democracy. He is also remembered for his personal integrity, his intellectual curiosity, and his optimistic vision of the future.