1.3 FRG Economic development and policies Flashcards
After WW2, which industries were banned
any considered war-related e.g. Munition + Chemicals
how were reparations paid off
Taken in equipment and machinery
How many German POW stayed in France after WW2
160,000
what was the price of 1kg sugar in 1947
what did it mean for the currency
priced at RM1, but only available on Black market for RM180
RM worthless
how many germans returned from Eastern Europe or East Germany
10 million (many became homeless)
when was the Marshall plan
1948
How much did the Marshall plan give Western Zones
$1.4 million
what did Marshall plan lead to
Creation of new stable currency Deutschmark (DM)
what did Erhard believe in
Free market Economy with social support for poorest
when was Adenauer chancellor
1949-63
when was Erhard chancellor
1963-66
When was Kiesinger chancellor
1966-69
when was Willy Brandt Chancellor
1969-74
When was Helmut Schmidt chancellor
1974-82
when was Helmut Kohl Chancellor
1982-98
When was new DM (Deutschmark) announced
June 1948
what were Erhards reforms when he was Director of Economic administration
- Rations abolished except essentials (bread)
- Until Nov 1948, wages fixed
(meant more food/consumer goods available) - Shopping and confidence grew
When was Equalisation of Burdens Act passed
1952
What was the equalisation of Burdens Act
Tax on assets, redistributed to help many start again
Were Erhards reforms successful
Econ recovery not immediate but gradual
what happened due to currency reform (Erhard Econ Policy)
Business couldn’t afford to pay wages
Unemployment increase late 1940s
what was the change in Unemployment from 1948 to 1955
June 1948 = 400,000
Jan 1949 = 900,000
1950 = 1,800,000
1955 = 1,000,000
what was car production in 1959
4.5 x greater than in 1950
what was steel production like in 1959
double the 1950 levels
What did Erhard create that gave workers more rights
Policy of Co-determination
(allowed for workers reps on managerial boards in industry)
when was the Policy of Co-determination
1951
Who opposed the idea of Erhards Social market economy
Economic Council + Britain
also labour unions (fear it would exploit workers)
How did the Korean War impact German Economy
Sparked need for war supplies,
FRG been banned from making those, by joining NATO (re-arm + start producing)
when did FRG join NATO
1955
How did Business investment help FRG economy
Many businesses recovered, invested in efficient equipment/Factories
Quality increased
FRG reputation increased
Exports increased
by 1960, How many VW exporting to UK every year
16,000
What were problems Gerhard Faced
- Growth couldn’t keep up with 1950s rapid rate
- Aug 1961 - Berlin Wall put up
- Berlin Wall reduced ‘Free professionals
- demand for consumer goods decrease
what was the difference in Exports from 1950 to 1970
1950 = 8000 (million Marks)
1970 = 120,000
how did unemployment change from 1950 to 1971
1950 - 8.1%
1971 - 0.7%
what was Real growth of German economy in 1951-1966
1951 - 10.4%
1966 - 2.9%
shows stability
How much was spent on Social Welfare in 1965 and 1970
1965 - DM 45 million
1970 - DM 115 million
increase despite benefits cuts
What did Schmidt persuade powers to do
Not introduce protective tariffs during 1st oil crisis (1973)
When was the Recession of the FRG
1966-67
What did the first economic recession do
Hurt confidence, reduced trade, increased unemployment
