The West German currency reform that produced the western deutsche mark was a courageous act. It exchanged one deutsche mark for 10 obsolete reichsmarks; later the rate was slightly reduced. In one respect, the result was similar to that of Weimar’s hyperinflation; paper savings were suddenly devalued. This time, however, there was a limit to any losses. What was more, quite small quantities of the new currency would actually buy goods. When Ludwig Erhard, the economic director who had undertaken the reform, also dismantled price and other controls, the scene was set for the so-called Wirtschaftswunder, the German “economic miracle,” fueled by freedom and competition and the energy they released.

By 1950 West Germany’s gross national product had caught up with the 1936 figure. Between 1950 and 1955 the national income rose by 12 percent a year, while exports grew even faster. From a small deficit in 1950, gold and foreign currency reserves increased to nearly 13 billion deutsche marks by 1955, while unemployment fell from 2.5 million to 900,000. Per capita income nearly doubled. New homes were built at the rate of 500,000 a year. By 1955 West Germany had more than 100,000 television sets. Bombed cities had been rebuilt. Every other family seemed to possess a Volkswagen “beetle” car.

West Germany’s was not the only economic miracle. France, spurred by the bright young graduates of grandes écoles like the Polytechnique, was modernizing rapidly—electrifying railways, launching new power projects, discovering natural gas, building nuclear reactors, mechanizing coal mines, and designing the Caravelle jet airplane. In 1948 France’s total output had been only just above the 1936 level. By 1955 it was half again as high. Between 1955 and 1958 French productivity increased by 8 percent a year, faster than anywhere else in Europe.

Italy, however, was not to be left behind. With a comparatively low starting point, plentiful labour, and new discoveries of oil and, especially, natural gas, it was able to increase the gross national product by 32.9 percent between 1950 and 1954. In Italian industry between 1950 and 1958, the average annual growth rate was 9 percent. As in West Germany, the transformation was visible: better clothes; smarter shop fronts; higher meat consumption; bicycles replaced by motor scooters and later by small cars.

In Britain, although there was no economic miracle, there were industrial success stories in chemicals, quality cars, nuclear energy, and aviation. It was a British airline that in 1952 inaugurated the world’s first purely jet airline service. By the end of the decade, Heathrow in London was the busiest airport in the world.

By 1955 all western European countries were producing more than in the 1930s. Abroad, from 1952 onward, western Europe was earning more than it spent. Between 1950 and 1955, average productivity in Europe increased by 26 percent. Although British Prime Minister Harold Macmillan was both misunderstood and mocked when he made the remark, he had some justification for telling an audience on July 20, 1957: “Most of our people have never had it so good.”

The benefits, for ordinary Europeans, took many forms. There was easier access to higher education and cheaper mass travel. There was more varied food; there was better health, preserved by better medicine. There were new synthetic materials, more plentiful housing, and wider automobile ownership. There were stereophonic recordings, colour television, high-fidelity audio equipment, and cheap paperback editions of serious books. There were new, more classless eating-houses, pedestrian precincts, supermarkets, and shopping malls. What its critics called “Americanization” had arrived.

But affluence had a downside, in Europe as elsewhere. It often harmed the environment: more cars meant more roads, and more yachts meant more marinas. It multiplied the production of waste, not all of it biodegradable. It sometimes seemed to glorify greed and snobbery, especially when it passed some people by. It troubled the young and the thoughtful: their material needs sated, they might be left asking, “So what?” With money more plentiful, it was easier to be spendthrift. With greater prosperity, drug abuse and alcoholism became more common; so, paradoxically, did hooliganism and casual crime. One of the by-products of the affluent society was self-doubt and self-questioning—the kind of critique of “consumer values” that was voiced by student rebels in and around 1968. It left many Europeans unsure of their deeper objectives and, still more, of their role in a bewildering world.