Question 2: Would you agree that the period between the 1950s and 1960s was a ‘golden age’ for Western Europe?
What is ‘golden age’? From dictionary, it means a period of time is one of great happiness or success. Depending on this definition and the question’s situation that Western European economics had faced devastation following the end of World War II, I would like to define ‘golden age of Western Europe’ as the country/countries enjoy economic prosperity. I think the years between the 1950s and 1960s were a ‘golden age’, which was a time when economic growth surpassed all historical records, and it will be explained in two aspects below, countries and residents.

From the countries’ aspect, it will be examined by Gross Domestic Product (GDP), export rates and industrial growth rates. Firstly, Western Europe’s GDP and per person GDP. GDP is an aggregate measure of production equal to the sum of the gross values added of all resident institutional units engaged in production. GDP increased represent all residents would benefit from their country’s increased economic production. Between 1950 and 1973, the GDP of Western Europe (include 29 countries) increased at an annualized rate of 4.81 per cent, against a secular growth rate (between 1973 and 1998) of 2.11 per cent, it rose more than twice as rapidly as over any comparable period before or since. The real per person GDP of Western Europe also increased at an annualized rate of 4.08 per cent, against the secular growth rate of 1.78 percent, outperforming all other world regions except Asian.

Secondly, Western Europe’s export rates. When a country’s export are high, the buyers of these exports need its currency to pay for those exports, the country’s income may increase. After 1948, the volume of exports of Western Europe rose about twice, with exports rising by between 8 per cent and 9 per cent per annum during 1950s and 1960s. The export output per employed person rose at more than 4 per cent per year in Western Europe, up from 3.6 per cent in the 1950s. By 1954, agricultural exports were increasingly hampered by tariffs, especially in the German market, while industrial exports increased rapidly in response to the general economic expansion in Western Europe.
Thirdly, Western Europe’s industrial growth rates. Industrial growth rates is a measure of the industrial sector of the economy, it is an important tool for forecasting future GDP and economic performance. In the early 1950s, Western Europe’s industrial production went up by 64 per cent. Between 1955 and 1963, industrial output in Western Europe as a whole rose by 54 per cent, and on the eve of the oil crisis production was virtually two and a half times greater than in the mid-1950s, and in most countries the growth curve after the early 1950s was remarkably smooth. As mentioned in the second point, the industrial exports increased rapidly by 1954, it is directly proportional to industrial growth rates, because it proved the countries’ industrial had grown to have the abilities for exports, so the industrial growth rates might also increase by 1954.

From the residents’ aspect, it will be examined by unemployment rates and household income. Firstly, Western European’s unemployment rates. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently. High and persistent unemployment has a negative effect on subsequent long-run economic growth, because it is a waste of resources and it generates redistributive pressures and subsequent distortions, drive people to poverty, constrains liquidly limiting labor mobility, and erodes self-esteem promoting social dislocation, unrest and conflict. In the 1950s, the level of unemployment was much lower than in the inter-war years. The average unemployment rate in Western Europe during the 1950s was 2.9 per cent and this dropped to 1.5 per cent in the following decade, with only Italy and Belgium recording rates above 2 per cent.

Secondly, Western European’s household income. Household income is a measure of the combined incomes of all people sharing a particular household or place of residence. If residents’ household income is high, they can have a higher quality of life and also enjoy economic stability. During the 1950s and the 1960s, average household income of Western Europe grew nearly sevenfold. In the early 1950s transfer accounted for less than 15 per cent of total disposable household income, but since the second half of the 1950s this proportion has grown dynamically to 27 per cent or more in the 1960s. Thus in 1950, the difference between the average income of worker and self-employed households was 762 DM and 639 DM.
However, some people may argue that the years between 1960 and 1970 were the ‘golden age’ of Western Europe, but not the period between 1950s and 1960s. Actually, the years between 1950s and 1960s had provided a foundation of economy in Western Europe, it was in a starting process of economic restructure during that period of time. If Western European economic grew without the development between 1950s and 1960s, it could not be such prosperous in the following years. So the period between 1950s and 1960s was the ‘golden age’, but not just the years between 1960 and 1970.

As a conclusion, I believe the period between 1950s and 1960s was a ‘golden age’ of Western Europe. It is because in that period of time, Western Europe had boosted the power economically. It can be proved by GDP, export rates, industrial growth rates, unemployment rates and household income with lots of information and data from that period of time. Also, the economic growth of a country can improve the quality of life of its residents. Therefore, I agree it was a ‘golden age’ of Western Europe.

References

Aldcroft, D. H. (2001). The European economy 1914-2000. London: Routledge.
Aldcroft, D. H., & Morewood, S. (2013). The European economy 1914. London: Routledge.
Castells-Quintana, D., & Royuela, V. (2012). Unemployment and long-run economic growth: The role of income inequality and urbanization. Investigaciones Regionales, 12(24), 153-173.
Cook, B. A. (2001). Europe since 1945: An encyclopedia. New York: Garland.
Clout, H. D. (1994). Western Europe: Geographical perspectives. Harlow, England: Longman Scientific & Technical.
Crafts, N. F. R., & Toniolo, G. (1996). Economic growth in Europe since 1945.Cambridge: Cambridge University Press.
Eichengreen, B. J. (2007). The European economy since 1945: Coordinated capitalism and beyond. Princeton: Princeton University Press. 19
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Stone, D. (2012). The Oxford handbook of Postwar European history. New York: Oxford University Press.
Sutcliffe, A. (1996). An economic and social history of Western Europe since 1945. London: Longman.
Zirakzadeh, C. E. (1997). Social movements in politics: A comparative study. London: Longman.

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[ 1 ]. Longman (2003), p.697
[ 2 ]. Northrup (2003), p.177
[ 3 ]. Cook (2001), p.486
[ 4 ]. OECD (2002)
[ 5 ]. Maddison (2001), p.126
[ 6 ]. Crafts (1996), p.38
[ 7 ]. Stone (2012), p.357
[ 8 ]. Aldcroft (2013), p.189
[ 9 ]. Eichengreen (2007), p.198
[ 10 ]. Griffiths (1992), p.192
[ 11 ]. Sutcliffe (1996), p.22
[ 12 ]. Clout (1994), p.89
[ 13 ]. Castells-Quintana (2012), p.153
[ 14 ]. Aldcroft (2001), p.133
[ 15 ]. Aldcroft (2013), p.189
[ 16 ]. Zirakzadeh (1997), p.25
[ 17 ]. Flora (1986), p.65
[ 18 ]. Flora (1986), p.66