Economic recovery 1945-66 Flashcards
How did the Allies prevent another war?
Industries considered to be war industries were banned. This included the steel industry. Other industries that were war related had their outputs restricted.
How were reparations to be taken in each zone of occupation?
In equipment and machinery.
Who undermined the chance of economic recovery post-war in order to take reparations?
The French and Soviets who dismantled many remaining factories.
How did the worthlessness of the Reichsmark damage the post-war economy?
The black market thrived and it was hard to get workers when their wages hardly bought anything.
How was economic recovery post-war hampered?
Despite the ACC trying to overcome difficulties, transport and communication links crossed the zones and each zone was run differently.
Why did some Germans leave and some never return after the war?
There was so much physical and economic devastation in Germany.
What is an example of Germans staying abroad after the war?
There were 160,000 German prisoners of war in France who decided to stay there afterwards.
How many people came to the FRG after the war as refugees?
10 million from Eastern Europe under the reallocation of land and people agreed at Potsdam.
Who was Minister of Economics between 1949-63?
Ludwig Erhard
What kind of economy did Erhard introduce?
A free market economy
When was a new currency introduced?
The Deutschmark replaced the Reichsmark in 1948.
What act did Erhard pass and what did this do?
The Equalisation of Burdens Act 1952 - it compensated those who had lost everything in the war.
What happened to unemployment between 1948-50?
It rose from 442,000 to 1,800,000.
What was the short term impact of Erhard’s reforms?
- Factories and businesses could start producing again but they had to replace machinery and train workers.
- Some businesses failed after the currency reform because they could not afford to pay wages.
- Having to lay off workers.
- People stopped hoarding the goods from shops - began to shop for price and quality.
What did Erhard abolish?
All but essential rationing and price controls
When did unemployment start to fall?
1955 - 1,000,000