Economic Factors Flashcards
What was one of the first things that Kaiser Wilhelm II did in 1888 on coming to power?
He ordered a restructuring of the navy’s administration to try and improve efficiency but the navy stagnated and declined by 1895
Why did Kaiser Wilhelm II want heavy investment in the navy in 1897?
It was only the 7th most powerful in the world
Why was investment in the navy preferable over the army in the late 1890s?
Because the army was dominated by Prussian Junkers and hadn’t changed since 1871 and also was divisive amongst the Southern States whereas the new navy wouldn’t carry any baggage of unification
In 1897 who did the Kaiser appoint and what did he do?
He appointed Admiral Tirpitz as Secretary of State for the Navy who established the Navy League
In 1897 what was the Navy League?
A pressure group set up by Admiral Tirpitz which carried out a press campaign to gain support for the naval expension
What did Tirpitz introduce in 1898?
A bill to introduce 17 ships over 7 years which was passed by 212 to 139 votes
Why was another bill introduced in 1900?
Because Admiral Tirpitz was not content with 17 ships and he wanted more so another bill was sent to the Reichstag to increase ship building further.
How many ships did Germany have in 1900?
36
When were more naval bills passed in Germany?
1906, 1908 and 1912
What was known as the Naval Race against Britain?
Naval bills were passed in 1906, 1908 and 1912 to increase the number of ships in the German navy, but also ensure that Germany led the way in terms of technology
What was the Dreadnought battleship?
A ship made by Britain in 1905 which was the most powerful ship of the time
In what year did the campaign for protective tariffs reach a peak and what was it in response to?
1879 and in response to a slowdown in the German economy that had occurred during the 1870s
What year did the German economy collapse and why?
1873 because 150 companies went bankrupt as they had been set up too quickly and weren’t sustainable
Why did Bismark want to pass a bill on tariffs in 1876?
Because tariffs were used to protect agriculture and maintain wealth of farms, and it would ensure his wealth as farms were owned by Junkers.
But bill was defeated in the Reichstag
How did Bismark use the issue of tariffs in 1878?
To campaign openly against the National Liberals who believed in free trade
When did the Reichstag pass the protective tariff law?
1879
Who backed the 1879 protective tariff law?
Reichstag passed it, backed by the Centre party and two Conservative parties
In 1963 West Germany was the strongest economic power in Europe but how big was it in Europe?
Third biggest
What was the Marshall Plan in Germany?
Germany received 99 million dollars that was used to develop coal mining, railway and electrical industries.
It already had considerable number of factories and a large population of skilled workers
How much did West Germanys GDP grow by in 5 years after the war?
12% helped by a cooperative union sector who restricted wage rises
What was “co-determinism” in 1951 and why was it a good thing?
Businesses with over 1000 employees in the iron and steel industry had to allow representatives of the workforce to have a say in the running of the businesses.
Meant more job satisfaction and less anger
What was established in 1952 which facilitated discussions between employers and employees which helped improved relations in the workplace?
The Works Council
By what year was there near full employment post war in West Germany?
1958
What did the Marshall plan promise and what did it provide?
Promised economic aid to Europe.
Provided 17$ billion to West European countries including West Germany
When did the Marshall Plan come into being?
5th June 1947
Who is the Marshall Plan named after?
Secretary of State George Marshall
How did President Truman get involved on 12th June 1947?
He announced his infamous doctrine which said the USA would provide military and economic assistance to “free peoples” struggling against communism
What did the Marshall Plan paid for?
37% of West Germany imports and much of the money improved railways, steel and electrical industries
What does OEEC stand for?
Organisation for European Economic Cooperation
What did the OEEC do?
It coordinated aid between Western European Nations after the war
What was Bizonia?
British and American sections of West Germany
What was Trizonia and when was it formed?
Bizonia merged with the French zone by June 1948
How was West Germany formed and when?
French zone was merged with Bizonia to form Trizonia when then became West Germany in 1949
How much money did West Germany receive during the 1940s and 1950s to support their economic development?
$2.7 billion
When did the Great Depression begin?
October 1929
How much money did the US investors lose when the Great Depression started?
$4 billion a month
By 1930, why had many US short term loans been withdrawn with the situation worsening after the September 1930 election?
Because the Nazi party made significant gains and this led to fears amongst US investors about the growth of political extremism and so they withdrew their investments
In June 1931 how many million RM was withdrawn from Germany with the collapse of 3 major banks?
RM 1000 million
What percentage of people were unemployed in Germany in the Great Depression?
40% of the workforce
Peak unemployment of 6 million in January 1932
Machine building industries 48.9%
Ship building 63.5%
What was known as “the dole” in 1927?
Unemployment benefits
When was Chancellor Bruning in post and what did he do?
1930-1932
He raised taxes and cut employment benefits
When was Chancellor Bruning in post and what did he do?
1930-1932
He raised taxes and cut employment benefits
What year did Bruning call an election and why?
1930 to provide a mandate for his economic policies
What was the result of Bruning calling an election in 1930?
A growth of support for extremist parties (both Nazis and Communists)
Nazis gained 6.4m votes (18.2%) compared to 2.6% in the 1928 election
What was the result of Bruning calling an election in 1930?
A growth of support for extremist parties (both Nazis and Communists)
Nazis gained 6.4m votes (18.2%) compared to 2.6% in the 1928 election
In the Bruning election in 1930 how many votes did the KDP gain?
4.4 million or 13.1% of the vote
What did the Nazis do after the Bruning 1930 election?
Took advantage of the situation and opened soup kitchens and ran charity fundraisers and by 1931 they were feeding 200 people a day in some areas
In March 1933 who did Hitler appoint as President of Reichsbank and what did he do?
Schacht
Solved hyperinflation by believing in Keynesian economics meaning countries could spend their way of of their problems
How did Schacht solve hyperinflation in March 1933?
By believing in Keynesian economics meaning countries could spend their way of of their problems
From 1933-1935 RM 5000 million was invested in public works and unemployment fell from 2.7 million in 1934
How many RM did Reichsbank issue to Germany industry?
RM 12,000 million and he financed 50% of arms expenditure from 1934-1936
As the economy recovered how did Hitler improve the situation even further?
He developed the New Plan in 1934
What did the New Plan in 1934 do?
Regulated imports by signing agreements with Europe and Latin American which ensured Germany was kept supplied with raw materials to enable them to make consumer goods
When did Schact resign and who was he replaced with?
Resigned in 1937 and replaced by Goring
When did Schact resign and who was he replaced with?
Resigned in 1937 and replaced by Goring
Who was in charge of munitions and armament?
Speer
How much did tank and engine production increase under Speer in 1940?
By 200%
How much did munitions increase per person under Speer in 1940?
Increased from 60%
How much did weapons production increase under Speer by 1940?
By 130%
When did the treaty of Rome establish the European Economic Community (EEC)?
25th March 1955
What was the EEC?
A common market between six nations which abolished tariffs between member states and helped West Germany
By 1981, West Germany’s industrial products were in high demand. What percentage of German exports went to the EEC, compared to what came from the EEC to Germany?
45% went from Germany
47% came to Germany from the EEC
What did the EEC introduce in 1962?
The Common Agriculture Policy
During 1962-1970 common prices were agreed on what goods in the EEC?
Wheat, rice, oils, milk, fruit, vegetables, sugar and wine
Agreeing prices on common food stuffs from 1962-1970 between EEC members, caused what to happen in West Germany to their food prices?
They dropped
Some agricultural exports from West Germany increased especially between 1971-1977. What were they?
Milk, sugar and butter
Between 1971-1977 West Germany’s share of sugar exports within the EEC rose by how much?
19%
What did the CAP sometimes amount to?
70% of the EEC budget
What percentage was West Germany spending on the CAP of it’s total expenditure?
30%
Why did farmers overproduce?
1) They were guaranteed a fixed (high) price by the CAP
2) The EEC said they would purchase any excess food
