Financial and social policy
In the early years of the Federal Republic of Germany financial policy provided important incentives for investment without which the “economic miracle” would hardly have been possible.In view of the high taxes of the early 1950s industry had practically no other choice but to invest as much as possible in order to avoid surrendering most of their profits to the inland revenue. The policy objective of high growth and high employment was achieved by changing the allocation of resources, curbing consumption and strengthening investment. The promotion of housing construction was another objective high on the agenda of fiscal policy.