Economic recovery from 1945-65

Question 1

Identify three examples of economic instability in Germany after the Second World War.

Answer 1

• 20% of housing was destroyed
• food consumption was dropping massively
• the reichmark became worthless

Question 2

Who was appointed Economics Minister of the FRG in 1949?h

Answer 2

Erhard Ludwig

Question 3

What was Erhard Ludwig’s vision for the economy?

Answer 3

He wanted a Social Market Economy

Question 4

What happened to the currency in june 18th 1948, and why did this help the economy to grow?

Answer 4

The currency was reformed. The old currency was abolished and the Deutschmark was introduced and every adult was given 60DM and germans could exchange their currency for DM.

Question 5

What happened to wages, and why did this help the economy to grow?

Answer 5

wages were fixed, this helped because businesses could stabilised and establish themselves swell as maximise their profits which leads to increased production and increased jobs and income and spending

Question 6

What was the 1952 Equalisation of Burdens Act, and why did this help the economy to grow?

Answer 6

Additional asset taxeswere given back to those who lost lots from the war and under the nazis

Question 7

What was the consequence of Erhard’s economic reforms in the short term?

Answer 7

not a lot of economic reform and some unemployment rising.

Question 8

What was the consequence of Erhard’s economic reforms in the long term?

Answer 8

Massive economic recovery. “ an Economic Miracle “

Question 9

What is the period of 1955-1965 also known as?

Answer 9

The Economic Miracle

Question 10

What happened to the FRG’s Gross National Product between 1950 and 1955?

Answer 10

it almost doubled and then rose by another 25% by 1960

Question 11

What happened to unemployment in the FRG by 1965?

Answer 11

it was less than 1%

Question 12

What happened to trade and exports from the FRG in the 1950s and 1960s?

Answer 12

overcame their trade deficit and became the third largest trading power

Question 13

What happened to standards of living in the FRG in the 1950s and 1960s?

Answer 13

they rose

Question 14

Identify four reasons that led to rapid economic growth between 1955 and 1965.

Answer 14

refugees, new investment, the korean war, marshall aid.

Question 15

How much Marshall Aid did the FRG receive by 1949?

Answer 15

1.5 billion

Question 16

Why did the Marshall Plan cause economic growth in the FRG?

Answer 16

sparked the recovery, it gave businesses the money they needed to buy new factories and new machinery

Question 17

When was the FRG allowed to start producing war materials again?

Answer 17

1955

Question 18

What happened to price controls and rationing, and why did this help the economy to grow?

Answer 18

they were lifted , commodities were sold creating competition and stoping hoarding or panic buying and blackmarket

Question 19

Why did the Korean War (1950-53) cause economic growth in the FRG?

Answer 19

there was a bigger need for for good raising their exports and economic growth

Question 20

Why did new investment in businesses cause economic growth in the FRG?

Answer 20

reputation of german goods got better and exports increased

Question 21

How many workers moved from the GDR to the FRG in the 1950s?

Answer 21

3.6 million workers

Question 22

Why did refugees cause economic growth in the FRG?

Answer 22

more workers for lower wages to businesses could produce more for less