FRG Flashcards
Negative effects of economic growth in FRG?
- increased gap between rich and poor, masked by an increase in wages
- creation of an underclass/gasterbeiter (made up of souther European immigrants who made up 10% of workforce by 1966)
- tendency to forget the past
What were the positive effects of economic growth in the FRG?
400% increase in wages Increased number of consumer luxuries Improvements in international relationships Integration of refugees Increased democratisation
What was Stalin’s reunification proposal to the FRG?
The proposal to create a neutral, unified Germany that would be entirely democratic, would have no reparations and be allowed a small army
Why did Stalin make the reunification proposal to the FRG?
He feared that if the FRG joined NATO it would further hamper the expansion of communism as the FRG were a successful economy
Why did the FRG reject Stalin’s reunification proposal?
- they didn’t believe Stalin would keep to his promise of a democratic, neutral state
- they feared the international response to the FRG dealing with the East
- they feared the SPD would take over Germany dominated by Protestants
How and why was NATO formed?
- The Brussels’ Pact of 1948 created the European Defence Organisation that began by fighting the resurgence of Germany but then began fighting communism
- The USA wanted to get involved but feared risking their armed forces whilst having little influence in a European organisation
- Thus, in 1949, NATO was formed and the EDO was absorbed into it
How did the FRG end up joining NATO?
- They wanted to join but the French did not and created an alternative, the European Defence Community (they didnt trust the FRG and feared excessive American influence)
- The FRG agreed to a treaty in 1952 but the EDC never came into effect
- the FRG eventually joined NATO in 1955 on the French premise of a limited army and no nuclear threat
How, why and when did the FRG join the ‘coal and steel community’
- joined following the 1951 ‘Treaty of Paris’
- allowed the FRG to exploit new and emerging markets
- acted as a peace treaty between the FRG and France
When did West Germany join the International Monetary Fund?
1952
When did the FRG join the European Economic Community
1957, following the ‘Treaty of Rome’
How did the FRG joining the EEC show a change in foreign policy?
Before, the FRG promoted US involvement in Europe but siding with the Gaullist French in the EEC excluded America
Went on to vetoe British acceptance to the EEC
How did the CDU/CSU last so long in power?
- removal of political extremes
- broadening of CDU/CSU’s appeal
- 5% law
How did the CDU/CSU remove extremist parties?
As part of the new constitution/ basic law (1949), Germany could ban anti-democratic parties
- thus, in 1952, the SRP was banned and in 1956, the KPD was banned
How did the CDU/CSU remove small minority parties?
As part of 1949 basic law, parties had to achieve at least 5% of the vote to be represented
How did the removal of small minority parties and the political extremes help the stability of CDU control?
Left only 3 parties remaining so strong and stable coalitions could be formed and no indecision due to minor parties
How did the CDU/CSU broaden their appeal?
- Made the party Christian rather than Catholic to appeal to Protestant minority as well as Catholics (also to avoid division in Germany)
- wide range of political policies helped to attract former nazi members
- strong appeal towards refugees left the BHE with less than 5% of the vote and thus no representation
What were Adenauer’s strengths as a leader?
- very pragmatic leadership -party motto: “no experiments”- put welfare of German people ahead of ideological beliefs
- great supporter of democracy
- very practical leadership: appointed ex-nazis into his government if he thought they could help
How did the CDU/CSU deal with the need to reconstruct housing?
They implemented the 1950 ‘construction law’ in which they provided generous subsidies to the construction industry
How successful was the 1950 construction law?
Created 4 million new dwellings by 1957
How did the CDU/CSU deal with the need to compensate the victims of the nazis?
The 1953 equalisation of burdens act compensated those most affected by the war
It was financed by taxes and levies on those least affected
How did the CDU/CSU deal with the need for economic growth?
- released control on prices to allow competitiveness
- cut tax dramatically: 95% tax bracket moved up from 6000DM income to 25000DM income & those on 2400DM or lower had tax cut from 84% to 18%
- Marshall aid rejuvenated industry
- trade blocs such as coal and steel community and later the EEC
How did the CDU/CSU deal with the need for welfare reform?
1957 ‘pensions act’ created index linked pensions and increased initial pensions by 60-75%
How did the CDU/CSU deal with the need to clarify the role of the armed forces
- Following the FRG’s acceptance into the EDC, they needed to create an army to combat communism
- The Bundeswehr (people’s army) was created in 1957
- To appease the French, the Bundeswehr had heavy restrictions and the FRG had no nuclear threat
Was there opposition to the creation of the Bundeswehr?
- The SPD heavily protested the creation of the army as they were anti-war
- Many civilians detested the army and the reminder of the pain of men in uniform brought about with the nazis and in world war 2
- As time passed, there was less and less opposition to the army as people saw it as protecting the people
How did the CDU/CSU deal with the need to clarify the direction of foreign policy?
- a strong sense of ‘westpolitik’ with the joining of the ‘coal and steel community’ and the EDC (later NATO)
- the 1955 Halstein doctrine was a very anti communist statement
How did the CDU/CSU deal with former Nazis?
- they aimed to reintegrate them into society and tried to help society forgive and forget the past
- CDU/CSU even appointed some former nazis into their government
What was ‘co-determination’?
The right of workers in an industry to have a say in the management of companies
What was the social market economy?
A free market economy but the state could intervene to protect consumers if needs be
How did the Korean War (1950) affect FRG economic growth?
- Increased the demand for German exports and got German industry moving
- increased the number of imports Germany had to make
- this led to a balance of payments deficit however got German industry rolling again
How did the FRG work creation schemes affect economic growth
Reduced the number of unemployment slightly that was at 8.1% in 1950
How did the FRG ‘1951 investment aid law’ affect the economy?
3.2bn DM invested into industry helped to create new jobs, modernise capital and increase output
How did the FRG change in tariffs affect the economy?
Cut protective tariffs by 50% to increase the level of international trade
How did the FRG scheme of co-determination benefit the economy?
The right of workers to be part of the management of companies created a greater sense of unity, pleased unions and lowered the wage demands of workers
How did Erhard’s price decontrol laws affect the economy?
1948 price decontrols allowed greater competitiveness of firms following price controls from 1936
How did Erhard’s tax cuts benefit the Economy?
In 1949, tax was cut heavily
Eg. 95% tax bracket rose from earners of 6000DM to 25000DM
Tax rate moved down from 84% to 18% for people earning 2400DM or lower
-this led to increased demand for goods and services and encouraged workers to work more hours to make more money, which increased output
How did the restructuring of trade unions affect the FRG economy?
Each industry had one trade union, all under the umbrella organisation of the DGB
This created a greater sense of unity and led to one of the lowest strike rates in Europe, resulting in greater efficiency
How did the FRG reconstruction programme affect the economy?
1950 construction programme created 4 million new dwellings by 1957
This increased German standard of living and increased demand for other goods in the economy
How did the state of natural and human resources in the FRG affect the economy?
- FDR already had an abundance of natural resources eg. Rhineland
- In 1939, German output was 2nd largest in the world
- In 1951, price of raw materials dropped heavily, allowing German industry to boom
- majority of successful German infrastructure remained in tact
- -it could be argued that due to the German state of natural resources, economic growth was inevitable