Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Germany History A-Level > economy in the FRG > Flashcards

economy in the FRG Flashcards

1
Q

which German industries were banned in 1945?

A

munitions and armaments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what German industries had their outputs restricted?

A

chemical industries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

how were reparations to be paid?

A

by equipment and machinery from all zones

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

how did the French and the USSR take reparations?

A

by dismantling factories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what effect did war and reparations have on economic recovery in Germany?

A

was made very difficult by heavy allied bombing, targeted at German factories as well as cities

whole cities needed to be rebuilt alongside industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what happened to the Reichsmark after WW2?

A

it’s value became worthless
a black market had evolved as a result

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

why was economic recovery difficult in the early FRG years?

A

transport and communication crossed zones which made trade difficult
military commanders were in charge of the different zones so the zones were all ran differently (esp the Soviet zone)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

how many German POWs decided to stay in France instead of returning to Germany and why?

A

160,000
many saw Germany’s economic and physical decimation as well as allied occupation too much to deal with

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

how many refugees came to Germany?

A

10 million
would be a vital asset for Germany’s economic recovery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

when was the Marshall Plan?

A

1948

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

how much aid was given to West-German zones in 1948 by the Marshall Plan?

A

$1.5 billion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

when was the Deutschmark introduced?

A

June 1948

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

how many DM were each adult given when the DM was introduced?

A

DM60

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

how many DM for RM100?

A

DM6.5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what did the introduction of the DM do for the economy?

A

greater confidence in German currency
as wages now were meaningful workers started working more and saving
led to a consumer goods market forming

black market was broken up
economy was stabilised

LIKE Rentenmark w/Weimar

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

who introduced the DM?

A

Ludwig Erhard

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

when was Erhard made Minister for Economics in the FRG?

A

September 1949

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what kind of economy did Erhard believe in?

A

a social market economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what was a social market economy?

A

a free market economy with elements of social support for the poorest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

when was all but essential rationing ended?

A

June 1948

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

for how long did Erhard keep wages fixed?

A

until November 1948

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

why did Erhard keep wages fixed?

A

to ensure businesses could recover and establish themselves

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what was the Equalisation of Burdens Act of 1952?

A

system of compensation which was generated through a tax placed on all assets

money raised from this act was distributed to help German start again

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what issues did Erhard’s reforms face?

A

machinery had to be replaced
new workers needed to be trained

many businesses could not afford to pay wages of workers so many workers were laid off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
unemployed in 1948
442,000
26
unemployed in 1949
937,000
27
unemployed in 1950
1,800,000
28
unemployed in 1955
1,000,000
29
car production in 1959
4.5 times greater than in 1950
30
steel production in 1959
doubled from 1950
31
what was Germany's new economy focussed on?
consumer goods market
32
who opposed Erhard's social market economy?
the EC and the Bundestag Britain industrialists
33
why did industrialists oppose the social market economy?
they wanted a return to cartelisation and fixation of prices to allow for growth
34
instead of cartelisation and price fixing what did Erhard want?
greater competition over industry - cartels to be broken up - price fixing to be abandoned
35
what gave Erhard enough support with his economic policy in the Bundestag?
a capitalist market was able to coincide with social welfare for the poorest this appealed to the majority of the Bundestag
36
which policies did Erhard carry forward?
he gave businesses tax concessions removed wage restrictions BUT encouraged the setting up of trade unions
37
when was co-determination introduced?
1951
38
what was co-determination?
the right of workers to take part in managing the business they work for allowed for greater worker representation in industry
39
what did co-determination lead to?
strikes no longer happened allowed German industry to carry on growing
40
what were the reasons for the economic miracle after 1955?
the Korean War joining NATO new investment workers
41
the Korean War
began in 1950 most countries focussed on production of war supplies which Germany was banned from doing instead Germany produced chemicals, steel and electrical good which were in demand in countries such as the USA which had switched focus to wartime production
42
joining NATO
the FRG joined NATO in 1955 was allowed to rearm and enter war production largely as a result of the Korean War
43
new investment
businesses which had recovered in the 1950s were able to heavily invest in more efficient equipment and new factories increased quality of goods as well as keeping prices low in order to compete with more exports, more workers could be employed and more raw materials could be bought
44
workers
influx of refugees gave businesses a large pool of potential guest workers to use once trained, a large pool of workers emerged which kept the wages low
45
how many skilled workers migrated from the GDR to the FRG in the 1950s?
3.6 million doctors engineers
46
why was an influx of skilled workers from the GDR useful for the FRG economy?
less money had to be spent on training workers this money could be spent on redevelopment
47
average sales of VW in the 1960s
400,000 per year
48
exports in 1950
8.4 billion marks
49
exports in 1960
47.9 billion marks
50
exports in 1970
125.3 billion marks
51
what were the problems which prevented further economic growth?
- fall in demand of consumer goods - setting up of the Berlin Wall
52
fall in demand of consumer goods
once everyone had bought goods for the first time, they were replaced at different times demand therefore fell
53
setting up of the Berlin Wall
in 1961 cut off skilled-worker migration from the GDR
54
what was the change in economic policy in 1966?
a shift to more government intervention in the economy
55
who was the Minister for Economics in 1966?
Karl Schiller
56
what did Schiller do to introduce more government intervention?
the Bundesbank was introduced to manage the supply of money
57
what was the role of the Bundesbank?
operated independently from the govt controlled circulation of DM and interest rates prevented inflation
58
govt spending on social welfare in 1965
DM46.7 million
59
govt spending on social welfare in 1970
DM115.9 million despite benefits cuts
60
why had German export figures manage to stay high despite ongoing intl crises?
Schmidt had convinced other nations not to implement protective tarrifs during the crises
61
what were the two crises which the FRG was effected by?
the recession of 1966-67 the oil crises of 1973 and 1978
62
effects of the 1966-67 recession
domestic and intl trade reduced unemployment rose
63
what had led to the 1966-67 recession?
the govt had spent lots on social welfare which almost went out of control in response there was an increase in government intervention and control
64
in what ways did the govt intervene during the 1966-67 recession?
subsidies for agriculture and coal industry reintroduction of cartels to stop prices rising 1967 Economic Stabilisation Law adjustments to the Basic Law
65
1967 Economic Stabilisation Law
allowed for government intervention in times of economic crisis to limit regional spending introduced a Five-Year Plan system for all government spending
66
adjustments to the Basic Law
money could be moved between Lander to allow the govt to spend more money on poorer Lander
67
who replaced Schiller as Minister for Economics in 1972?
Helmut Schmidt
68
how much did the FRG spend on oil in 1972?
DM10.8 billion on 140 million tonnes
69
who put up prices of oil and in response to what?
OPEC in response to the Fourth Arab-Israeli War
70
how much did the FRG spend on oil in 1973?
DM32.8 billion on 140 million tonnes
71
what did a rise in oil price lead to in Germany?
an economic crisis high unemployment foreign worker contracts were not renewed
72
why did the FRG fare better than other European nations during the oil crises?
it's export market was providing a large enough income to soften the blow govt measures were put in place to reduce oil consumption
73
govt measures put in place to reduce oil consumption
car free Sundays speed limits on the Autobahn investment in atomic power higher income tax and cuts in public spending non-intervention in oil prices
74
how did not intervening in the price of oil help the FRG economy?
by not subsidising oil prices, oil prices rose in line with their actual cost put people off from using oil encouraged saving fuel
75
were strikes ever an issue in the FRG?
most employers saw a moderate pay rise, in line with what workers were requesting, as less harmful to them than a strike
76
what was created going into the 1980s?
a strong divide between rich and poor
77
unemployment in 1981
1.7 million
78
why was the 1981 govt unpopular?
cut public spending which included benefits and housing allowance went against concept of social market economy
79
why did Kohl's govt reduce public spending more?
Kohl believed that welfare spending created dependency it was this dependency which led to productivity levels falling as people simply fell back to benefits instead of working hard
80
what cuts did Kohl's govt introduce?
cut to maternity benefit cut public holidays reduced the age of retirement to 58
81
which state organisations where partially privatised by Kohl?
Lufthansa and Volkswagen
82
had Kohl's policies worked?
YES they brought down unemployment figures and the economic growth rate had risen

Germany History A-Level (54 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions