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This chapter explores social democratic modernization. Economic recovery went unevenly across Western Europe, but it had the help of the US Marshall Plan wherein post-war economies regained or surpassed their pre-war levels of production. Soviet efforts at postcolonial development acted as a powerful accelerator of modernization. Capitalism thrived as well. The chapter also highlights how the perceptions of social classes changed as employers and employees entered a mutually beneficial social partnership. It highlights the contributions of Richard Löwenthal and Fritz Erler to social democratic modernization. The usual paradigm of historians for the transformation of the German Social Democratic Party and West German society in the 1950s is the Westernization thesis.