15
Thus, a certain stability of the share of labour in the income
being to some extent assured, the chances of finding markets
for the new goods, the television sets t the washing machines
and the cars were good. The philosophy of consumption
and high wages worked. ( A less desirable consequence
was the great differentiation of wage levels in different
sectors of the economy ).
The other element which kept profit margins within limits
was international competjpition. Here again the conditions
were completely different from those of pre-war, due to
liberalisation and Gatt agreements, the multinationals
and the intense technological competition.
A further important condition for the continuation of
growth was the relative absence of the foreign balance
constraint ( if we except Britain where this constraint
played a major role ). The scarcity of dollars in the first
CL
post-war period had been taken care of by the Mrshall plan
and the loans of the U.S., a direct and indirect supply of
dollars, while within Europe the European payments union helped.
No doubt there was still plenty of disturbance but
not as much as could reverse the trend of growth.
Cooperation in the international field prevailed, because
Western democracy felt the obligation of making a good show
in comparison with the East. This motivation was very
clear in the competitive efforts in the field of education
and research.