As a partial solution to immediate European defense needs, Friedrich joined Bundy in calling for stronger, increased British and United States forces in Germany.
German Economy Booming
Vast expansion of defense outlays here and in Europe is already having and will continue to have a favorable effect upon the Germany economy. Even though the Ruhr will not make new guns, it will provide the steel for new guns and consumer for engineering products and consumer goods from the Ruhr will remain high. So reported John K. Galbraith, lecturer in Economics, who spent time in Germany this summer.
Even before Kores, Germany had been experiencing a boom and had enjoyed a favorable balance of trade, with deficits being made up by the Economic Co-operation Administration, Galbraith said. Production figures are at, or, in the case of some items, above those of 1936.
Meanwhile, with the gradual relaxing of allied economic controls, Germany has concluded large scale trade agreements with many areas, including a $60,000,000 deal signed with Mexico just two days ago.
Unemployment which stood at a danger ous high of 9.3 percent of the labor force in June, 1949 in being cut down at the rate of 110,000 persons per month.
On the debit side, Galbraith maintains that there is an "unsatisfactory distribution of the return from German recovery." The laborer is not benefiting enough from the boom and the middle Class, the savings of which were wiped out at the time of the 1948 currency reform, is also underpaid. Relatively speaking, the farmers and employers who had their wealth in the form of property in 1948 and whose goods are much in demand now are the best off in Germany.
The danger of this situation does not lie in a conversion of the German worker and middle class to Communism, Galbraith said. Rather, discontent taking the form of a "don't care attitude," and an impatience with government and democratic processes results.
This is the fifth in a series of stories attempting to orient the University of the present international situation. The first four covered left-wing clubs, faculty views on the Far East, the new anti-Communist law, and the views of six professors on the Korean war.