Economic Policy - Topic 1 GDR - KQ3 Flashcards
What are the advantages of a Socialist Economy? (1 Advantage)
- Gov can harness economy to state needs
What are the Disadvantages of a Socialist Economy? (3 Disadvantages)
- Quantity over Quality
-Reduction in innovation and creativity
-No Profit motives for workers
When was the First Five Year Plan created and when did it end?
1951-55
What were the aims of the first Five Year Plan? (2 Aims)
-Develop heavy industry, iron, steel, energy and chemical
-Increase living standards to pre- war levels.
What were the Advantages of the First Five Year Plan? (1 Advantage)
-Output was increased of coal, iron, electricity and cement. So this was an overall success.
Adolf Honecker was an example of this as he increased his coal production by 400% and he was praised for it.
What were the Disadvantages of the First Five Year Plan? (2 Disadvantages)
-Workers were under great pressure and had to work long hours
-Quantity rather than Quality
When did the Second Five Year Plan start and end?
1956-59
What were the aims of the Second Five Year Plan?
The aim was to focus on consumer goods and improving living standards
What are the Advantages of the Second Five Year Plan? (1 Advantage)
-Increase in consumer goods available
What are the Disadvantages of the Second Five Year Plan? (2 Disadvantages)
-Control tightened by SED
-Ulbricht’s call meant the plan was abandoned and a seven year plan was made instead
When was the seven year plan created?
1959
What was the aim of the seven year plan?
Aimed to increase the manufacturing of consumer goods by 200%
Advatage of Seven year plan? (1 Advantage)
-Production Increased
Disadvantages of the Seven Year Plan? (2 Disadvantages)
-Steel and Iron production fell way off target
-Living Standards impacted as workers had to increase productivity by 85%
What happened to farmers land?
They were forced to forfeit their land and it was redistributed to peasants, small farmers and refugees