The Postwar Economic Boom
The quarter century or so after the Second World War witnessed the longest period of uninterrupted growth among the industrialized countries of the world and at the highest rates in history. For the industrialized countries as a group the average increase in gross domestic product per person employed from 1950 to 1973 amounted to 4.5 percent per year. Rates for individual countries ranged from 2.2 percent for the United Kingdom to 7.3 percent for Japan. Growth was most rapid in those countries that had abundant supplies of labor, such as Japan and West Germany. Growth in the United States, Canada, and Great Britain, which had the highest individual incomes at the end of the war, was slower than that of continental Europe and Japan but more rapid than in any prolonged period in their previous histories. At the same time, countries with relatively low individual incomes within the industrial group-Italy, Austria, Spain, Greece, and Japan-grew more rapidly than the average.
The term “economic miracle” was first applied to the remarkable spurt in growth in West Germany after 1948. When the high rates of growth continued throughout the 1950s and 1960s, it was used to refer to the entire era. It was then noted that several other nations, notably Italy and Japan, had growth rates as high as or higher than West Germany’s. Still, though the high growth rates in most of the industrial countries were certainly remarkable, and unprecedented in history, they were scarcely miraculous. There were solid reasons for them in every case.
The Marshall Plan (officially called the European Recovery Program and based on investment from the United States) played a crucial role in sparking the European recovery. When funding from the United States ended in 1951， Europeans kept economic growth going with high levels of savings and investments. Much of the investment went into equipment for new products and processes, since during the preceding years a backlog of technical innovations had built up that only awaited capital and skilled labor to be employed. In effect, the European economies had stopped growing for an entire generation, operating with obsolete equipment and lagging behind in technical progress. Thus, technological modernization both accompanied and was an important contributory factor to the so-called economic miracle.
Other major factors were the attitude and role of governments. They participated in economic life both directly and indirectly on a much larger scale than previously. They nationalized some basic industries, drew up economic plans, and provided a wide range of social services. Nevertheless, private enterprise was responsible for by far the largest part of economic activity. On average, between one-fourth and one-third of national income in Western Europe originated in the government sector. Though this proportion was much greater than it had been before the war, it was less than half the contribution of the private sectors of the economy. In the mixed economies that became characteristic of the Western democracies, government assumed the tasks of providing overall stability, a climate favorable to growth, and minimal protection for the economically weak and underprivileged, but it left the main task of producing the goods and services desired by the population to private enterprise.
At the international level the relatively high degree of intergovernmental cooperation deserves major credit for the effectiveness of the economic performance. The cooperation was not always spontaneous, and some promising projects failed for lack of it; but on the whole, the contrast to the prewar years is conspicuous.
Finally, in the long term, much credit must go to Europe’s wealth of human capital. Its high rates of literacy and specialized educational institutions, from kindergartens to technical schools, universities, and research establishments, provided the skilled personnel and brainpower to make the new technology work effectively. During the first flush of the success of the Marshall Plan, many observers incorrectly deduced that physical or financial capital alone would suffice to bring about development, and several grandiose projects based on that false premise were undertaken elsewhere, only to end in failure and disillusionment.
1
The quarter century or so after the Second World War witnessed the longest period of uninterrupted growth among the industrialized countries of the world and at the highest rates in history. For the industrialized countries as a group the average increase in gross domestic product per person employed from 1950 to 1973 amounted to 4.5 percent per year. Rates for individual countries ranged from 2.2 percent for the United Kingdom to 7.3 percent for Japan. Growth was most rapid in those countries that had abundant supplies of labor, such as Japan and West Germany. Growth in the United States, Canada, and Great Britain, which had the highest individual incomes at the end of the war, was slower than that of continental Europe and Japan but more rapid than in any prolonged period in their previous histories. At the same time, countries with relatively low individual incomes within the industrial group-Italy, Austria, Spain, Greece, and Japan-grew more rapidly than the average.
According to paragraph 1, all of the following statements about economic growth in the industrialized countries during the 25 years after the Second World War are true EXCEPT:
ACountries with comparatively low individual incomes had the slowest growth.
BGreat Britain experienced slower economic growth than continental Europe did
CThose countries that had plenty of available labor had the fastest growth
DCanada and the United States grew steadily and more rapidly than in the past
2
The quarter century or so after the Second World War witnessed the longest period of uninterrupted growth among the industrialized countries of the world and at the highest rates in history. For the industrialized countries as a group the average increase in gross domestic product per person employed from 1950 to 1973 amounted to 4.5 percent per year. Rates for individual countries ranged from 2.2 percent for the United Kingdom to 7.3 percent for Japan. Growth was most rapid in those countries that had abundant supplies of labor, such as Japan and West Germany. Growth in the United States, Canada, and Great Britain, which had the highest individual incomes at the end of the war, was slower than that of continental Europe and Japan but more rapid than in any prolonged period in their previous histories. At the same time, countries with relatively low individual incomes within the industrial group-Italy, Austria, Spain, Greece, and Japan-grew more rapidly than the average.
It can be inferred from paragraph 1 that the industrialized country with the greatest economic growth during the 25 years after the Second World War was
AWest Germany
BItaly
Cthe United States
DJapan
3
The term “economic miracle” was first applied to the remarkable spurt in growth in West Germany after 1948. When the high rates of growth continued throughout the 1950s and 1960s, it was used to refer to the entire era. It was then noted that several other nations, notably Italy and Japan, had growth rates as high as or higher than West Germany’s. Still, though the high growth rates in most of the industrial countries were certainly remarkable, and unprecedented in history, they were scarcely miraculous. There were solid reasons for them in every case.
The word “era” in the passage is closest in meaning to
Aprocess
Bperiod
Cworld
Dsituation
4
The term “economic miracle” was first applied to the remarkable spurt in growth in West Germany after 1948. When the high rates of growth continued throughout the 1950s and 1960s, it was used to refer to the entire era. It was then noted that several other nations, notably Italy and Japan, had growth rates as high as or higher than West Germany’s. Still, though the high growth rates in most of the industrial countries were certainly remarkable, and unprecedented in history, they were scarcely miraculous. There were solid reasons for them in every case.
Why does the author make the statement that “There were solid reasons for them in every case”?
ATo emphasize that the term “economic miracle” correctly refers to every example mentioned in the discussion about the postwar economic boom in industrial countries
BTo provide support for the claim that the term “economic miracle” more appropriately refers to Italy and Japan than to Germany
CTo question the appropriateness of using the term “economic miracle” to refer to the strong growth rates in certain industrial countries after the war
DTo argue that the term “economic miracle” should refer to the economic recovery of the late 1940s but not to the growth of the 1950s and 1960s
5
The Marshall Plan (officially called the European Recovery Program and based on investment from the United States) played a crucial role in sparking the European recovery. When funding from the United States ended in 1951， Europeans kept economic growth going with high levels of savings and investments. Much of the investment went into equipment for new products and processes, since during the preceding years a backlog of technical innovations had built up that only awaited capital and skilled labor to be employed. In effect, the European economies had stopped growing for an entire generation, operating with obsolete equipment and lagging behind in technical progress. Thus, technological modernization both accompanied and was an important contributory factor to the so-called economic miracle.
According to paragraph 3, all of the following were true of the European economic recovery EXCEPT:
AIt involved purchasing new equipment.
BIt received financial support from outside Europe.
CIt stopped for a generation after the Marshall Plan ended
DIt was affected in important ways by technological changes.
6
The Marshall Plan (officially called the European Recovery Program and based on investment from the United States) played a crucial role in sparking the European recovery. When funding from the United States ended in 1951， Europeans kept economic growth going with high levels of savings and investments. Much of the investment went into equipment for new products and processes, since during the preceding years a backlog of technical innovations had built up that only awaited capital and skilled labor to be employed. In effect, the European economies had stopped growing for an entire generation, operating with obsolete equipment and lagging behind in technical progress. Thus, technological modernization both accompanied and was an important contributory factor to the so-called economic miracle.
According to paragraph 3, how did investment contribute to the economic recovery of Europe?
AIt persuaded Europeans to accept the Marshall Plan.
BIt encouraged European consumers to purchase new product
CIt provided funds necessary to modernize European technology.
DIt stimulated new ideas about technological improvement by funding research
7
Other major factors were the attitude and role of governments. They participated in economic life both directly and indirectly on a much larger scale than previously. They nationalized some basic industries, drew up economic plans, and provided a wide range of social services. Nevertheless, private enterprise was responsible for by far the largest part of economic activity. On average, between one-fourth and one-third of national income in Western Europe originated in the government sector. Though this proportion was much greater than it had been before the war, it was less than half the contribution of the private sectors of the economy. In the mixed economies that became characteristic of the Western democracies, government assumed the tasks of providing overall stability, a climate favorable to growth, and minimal protection for the economically weak and underprivileged, but it left the main task of producing the goods and services desired by the population to private enterprise.
According to paragraph 4, what impact did governments have on the mixed economies that characterized Western European democracies after the war?
AGovernments were responsible for a larger part of national economic activity than was private enterprise
BGovernments provided overall economic stability and encouraged economic growth.
CGovernments controlled most private industries to ensure that they worked together to promote national growth.
DGovernments created plans for the national production of goods that private enterprise enforced.
8
Finally, in the long term, much credit must go to Europe’s wealth of human capital. Its high rates of literacy and specialized educational institutions, from kindergartens to technical schools, universities, and research establishments, provided the skilled personnel and brainpower to make the new technology work effectively. During the first flush of the success of the Marshall Plan, many observers incorrectly deduced that physical or financial capital alone would suffice to bring about development, and several grandiose projects based on that false premise were undertaken elsewhere, only to end in failure and disillusionment.
Paragraph 6 suggests that the failure of some large development projects in places other than Europe was largely caused by
Athe inadequate supply of financial capital for investment
Bthe use of inefficient technology
Cthe lack of an adequately skilled and educated workforce
Dthe fact that the projects were not covered by the Marshall Plan
9
The Marshall Plan (officially called the European Recovery Program and based on investment from the United States) played a crucial role in sparking the European recovery. When funding from the United States ended in 1951， Europeans kept economic growth going with high levels of savings and investments. [■]Much of the investment went into equipment for new products and processes, since during the preceding years a backlog of technical innovations had built up that only awaited capital and skilled labor to be employed. [■]In effect, the European economies had stopped growing for an entire generation, operating with obsolete equipment and lagging behind in technical progress. [■]Thus, technological modernization both accompanied and was an important contributory factor to the so-called economic miracle.
[■]Other major factors were the attitude and role of governments. They participated in economic life both directly and indirectly on a much larger scale than previously. They nationalized some basic industries, drew up economic plans, and provided a wide range of social services. Nevertheless, private enterprise was responsible for by far the largest part of economic activity. On average, between one-fourth and one-third of national income in Western Europe originated in the government sector. Though this proportion was much greater than it had been before the war, it was less than half the contribution of the private sectors of the economy. In the mixed economies that became characteristic of the Western democracies, government assumed the tasks of providing overall stability, a climate favorable to growth, and minimal protection for the economically weak and underprivileged, but it left the main task of producing the goods and services desired by the population to private enterprise.
Look at the four squaresthat indicate where the following sentence could be added to the passage
But technological development was not the only element in the European economic recovery
Where would the sentence best fit？Click on a square sentence to the passage.
10
During the 25 years after the Second World War, the industrialized countries of the world experienced strong economic growth.
AEconomic growth was fastest in the most advanced of the industrialized countries, which had the most modernized technology and the highest individual incomes at the end of the war.
BInitial investment through the Marshall Plan was followed by European investment. providing necessary financing for the technological modernization of European economies,
CThe mix of active government involvement with private enterprise in Western European economies as well as intergovernmental cooperation were major factors in economic growth.
DThe postwar economic miracle in countries such as Italy and Japan enabled them to join the group of industrialized countries, but their individual incomes remained lower than average.
EGovernments nationalized basic industries and drew up economic plans, becoming directly or indirectly responsible for a greater proportion of economic activity than private enterprise
FAn important contribution to economic progress came from Europe’s human capital, which provided the skills and intelligence needed to make the new technology work well
