Prosperity and AHV

After the Second World War, Switzerland was not destroyed. The factories could produce immediately. In the 1950s and especially in the 1960s, the economy grew very strongly. This period is called the economic boom (Hochkonjunktur). There was more work than there were workers. Wages rose significantly, especially quickly in the 1960s. The standard of living rose sharply for many people.

Many families could now afford things that had been luxuries before: a car, a fridge, a washing machine, a television or holidays. Switzerland became a consumer society. That means: people buy much more than just the bare necessities. Working-class families also had more money now. Before, for example in the crisis of the 1930s, many people were unemployed and poor.

Social security also improved. In 1947 the people approved the old-age and survivors' insurance (AHV). It has paid pensions since 1 January 1948. The AHV is a state insurance for everyone. It pays money to old people and to survivors, that is widows, widowers and orphans. To this day it is the most important social insurance in Switzerland.

Memory aid: AHV 1948: after the war there is a pension for everyone.