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High inflation leads to lower PE ratios. For those who never want to sell 'their' business, a phase of inflation is not that problematic. And Germany had a currency reform as well after WW I, not only after WW II. On industrialisation Germany was as well late, compared with UK.

I think stock markets have a much longer tradition in the US and France than in Germany. Here the traditional enterprise is personal business with low equity and a lot of credit. So the rich people in Germany are often large borrowers of money from the middle class (their workers), instead of creditors. In recent years there are increasingly people with lots of money, who have never been entrepreneurs, but I think that is really a newer development.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers

by Martin (weiser.mensch(at)googlemail.com) on Fri May 16th, 2008 at 09:19:54 AM EST
[ Parent ]
I'm ready to believe a lot of the equalisation of Germany happened straight after WWII, be it in the East or in the  West... It sounds much like a special case.

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Fri May 16th, 2008 at 09:31:56 AM EST
[ Parent ]
Yes, it probably is, but 'special' are in a way probably also the countries which had 40 years of communism, the ones like Ireland, which were long rather poor and then had exploding growth, the ones like Switzerland profiting from tax evasion of other countries,...
There maybe over 200 different countries in the world, which may have nearly as much different histories...

However, today even when taking more from the very rich is feasible, it would be an illusion to think one can help all the weaker people in the society without a large contribution of those who are just rich, but not the very rich.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers

by Martin (weiser.mensch(at)googlemail.com) on Fri May 16th, 2008 at 09:50:21 AM EST
[ Parent ]
However, even if two world wars and what followed them were the most effective in reducing the power of the old upper class, I do think that you underplay the role of redistribution, and that during Bismarck, the Social Democrat Weimar times, and (lest we formget) the Nazis, too.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun May 18th, 2008 at 11:17:19 AM EST
[ Parent ]

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