Challenges

Question 1

Recession

Answer 1

1966-67

• domestic and international trade decreased
• guest workers left - no benefits + 1yr contracts
• exploited as many arrived illegally
• 1966 - 1.3 mil GW/ 1967 - 900k

Question 2

Govt problem

Answer 2

• public spending out of control

Question 3

Possible solutions

Answer 3

• karl scheidler reorg govt approach
• eco minister gave subsidies to industries
• 1967 - economic stabilisation law allowed govt intervention
• scheidler failed + replaced by schmit 1972
• gulf crisis of 1973 - oil prices

Question 4

Gulf crisis 1973

Answer 4

• 1972 - 10 bil DM for 140bil tonnes of oil
  32 bil in 1973
  49 bil in 1978

Question 5

Baby boomers

Answer 5

• ban in recruiting guest workers to prioritise Germans
• 69 live births per 1000 in 1954
• 86 live births per 1000 in 1964
• returning soldiers/ usa boom
• wealth gap widened/ hostility towards workers increased