Economics Flashcards
Aggregate value of surviving buildings 1945v1936
1945 - RM62 billion
1936 - RM51 billion
Industrial production increase in Bizonia
51% of 1936 levels in Jan 1948 to 75% by Dec 1948
When was Deutschmark introduced
20th June 1948
Wage conversion RM v DM
RM1 to DM1
Savings conversion RM v DM
RM100 to DM6.5
Debts of how much were wiped out
RM400 billion
Tax rate for average incomes
1950, rate for average incomes of DM2,400 fell to 18%
1948, was as high as 85% (RM)
Tax rate for incomes over DM250,000
95%
Absenteeism decrease
9.5 hours per week to less than 2 hours average
Growth rate in industrial production 1950
25%
Unemployment 1950s
Fell from 10.3% in 1950 to 1.2% by end of decade
Salary increase 1949-55
80%
Industrial production increase
By 1958, had quadrupled since first half of 1948
Investment Aid Law
Provided gov subsidy of DM3.2 billion
Anti-Trust Law 1957
Designed to prevent & dismantle cartels
Deutsche Bundesbank 1957
Had power to raise interest rates/control circulation of money within economy
Controlled inflation
Marshall Plan
Aided $1.5 billion 1948-52
Average economic growth 1955-66
8%
FRG share of world trade increase 1965-75
6.6% to 7.9%
Unemployment in 1955
1 million
4.2% of workforce
How much of industry did federal gov control by mid 1950s
40% of coal and iron
75% of aluminium
66% of electricity generating plants
Erhard response to 1965-69 recession
Cut spending plans by 10%
German workers would have to work an extra hour/week
Increased interest rates
When did Erhard resign
Nov 1966
Karl Schiller
Appointed new economics minister
Dec 1967 - Introduced 5 year financial plans and co-ordinated budgets of different gov levels
Law for Promoting Stability & Growth in the Economy
June 1967
Formalised process of co-operation
Increased federal gov activity in economy
Article 109 of Basic Law emended
Allowed increased gov control of tax & spending policies of different states
VAT rise
10% to 12%
Kiesinger’s economic successes
Unemployment falling by 1968
Industrial growth 6% per annum
1969, inflation = 1.5%
Brandt’s increased spending on social welfare as % of GDP
25% to 33%
Brandt’s social reforms to education
300% increase in expenditure on education
School leaving age raised to 16
Educational support Law
Brandt’s social reforms to pensions
Raised by 5% for people wounded in war
Rasied by 16% for widows of German soldiers
State pensions able to be accessed after 63
Brandt’s social reforms to healthcare
Medical exams for all children under 5
Early cancer detection in women under 35 and men under 45
Brandt’s social reforms to housing
Social housing budget increased by 36%
Consequences of Oil crisis 1973
Had to pay DM17 billion more for imports
Balance of payments went from surplus to $692 million within a year
GNP fell from 5.3% to 0.4% by 1974
Unemployment rose from 1.2% to 4.7% 1973-75
Gov support for private sector investment
DM7-8 billion in grants
Public works contracts around DM1.1 bill to create jobs
Growth rates average over course of 1980s
3.6%
Unemployment by 1989
7.6%
Inflation by 1986
Less than 1%
Rise in exports 1985-89
DM73.4 bill to DM134 bill
ECSC provided how many apartments
112,500
ECSC trade in coal
Increased 10x
FRG supplied goods to European partners
25% of chemical goods
23% of motor vehicles
14% of iron and steel
Invested how much in other EEC states
DM56.7 billion in late 80s
Increase in car ownership
2 million to 12.1 million 1950-65
Average disposable income 1964
DM904
2/3 spent on essentials
DM823 spent on private consumption
Cost of living compared to uk
FRG - 107
UK - 133.3
1985=100
Price rise FRG v UK
6% in FRG
24% in UK
Number of employees in public sector
Rose 250%
Older properties
90% lacked inside toilet or central heating in 1960
18% in 1983
Home ownership
37.8% 1987
