[lgbr]

This theory doesn't hold up at all. Germany nearly flattened, and yet, they had the Wirtschaftswunder ( https://en.wikipedia.org/wiki/Wirtschaftswunder ). In fact, it wasn't just that Germany was bombed, but after the war their machinery and even their top talent were ruthlessly pillaged by both the West and the Soviets. And yet, Germany emerged just as well (or better by some measures) industrially than Sweden or the US.

If you want more counter-examples, look to Japan, nothern Italy, or Austria, whose industrial capacity and economy became exceedingly powerful after the war.

[seanmcdirmid]

A lot has to do with the stability of your society; as long as your government and talent is relatively intact, you can rebuild quite quickly even from extreme catastrophes. Its only when you start "liquidating" the intelligentsia (Cambodia, Soviet purges) where you begin to take steps back, or maybe a prolonged multi-decade war or colonial occupation (Afghanistan, India).

[freehunter]

I would wonder if the Marshall Plan didn't contribute greatly to the post-war success of Western Europe (as was the intention of the program). A cursory glance over the Effects section of the Wikipedia page shows that the effects of the plan greatly increased Western Europe's industrial and agricultural standing.

[seanmcdirmid]

It sped things up, but I doubt much more than that. Look at the money we pump into Africa and the developing world; without the right society in place, that money just evaporates into short term fixes along with a lot of corruption and waste (not saying we should stop, but we have to do it better than we are).