Economic crisis 1966 onwards Flashcards
In what years did Germany face recession ?
1966-67
What were the effects of recession 1966-67
Trade decreased unemplyment increased
What is a recession ?
A decline in economic growth /activity
Which two measures intoduced in 1967 and 68 respectively were introduced to increase gov intervention and control during reccession ?
1967 economic stabilisation law
1968 provision added to basic law
(Part of one of the many provisions under the emercency law)
What did the 1967 economic stabilisation law do ?
Allowed gov intervention in times of economic crisis to limit regional spending and introduced 5 year plan system for all spending.
What years were the oil crisis ?
1973 and 1978
What caused the oil crisis ?
Fourth Arab israeli war breaks out in 1973 (oct)
OPEC (organisation of petroleum exporting countries ) put oil prices up sharply
How many billion DM did it cost for 140 million tonnes of oil in 1972 compared to 1978 ?
1972: 10.8 billion DM
1978: 49 billion DM
Give 3 examples of measures taken by the government to reduce oil consumption in the 1970s ?
Car free sundays
Propaganda encouraging energy saving tactics in homes and industry
Not subsidising oil prices allowing price to increase and demand to fall.
What else did the gov do in 1975 as a response to the oil crisis ?
Public spending cut and income tax increase ( Schmidt criticised for this )
How many people were unemployed during 1981 ?
1.7 million
What percenatge of oil did the FRG get from the OPEC (initially)
40 % ( they relied on cheap oil from the middle east which is why it was such a problem when prices went up)
What was the impact of the oil crisis on guest workers ?
Ban on guest workers in 1973 due to high unemployment.
What problems were there during the 1980s ?
Growth shrank
1.7 mill unemployed
Prices rising with inflation
Who was in power after 1982
Helmut Kohl
