FRG: ECONOMY Flashcards
Why was the economic growth of West Germany labelled an ‘economic miracle’?
Due to the economic growth and recovery from 1952 until the recession of the mid-1960s.
What was the average growth rate of the economy between 1951 and 1965?
8%
What was the highest annual growth rate in West Germany? What year?
1955: 12%
What happened to the gross national product between 1950 and 1955?
Doubled.
What had happened to the gross national product by 1960?
Had risen nearly another 50%.
Why was the balance of trade evidently positive?
Amounts of exports. By 1954, West Germany were the third largest trading power.
What were the unemployment figures in the economic miracle?
Just 4.2% by 1955.
What was the % of income rise between 1949 and 1963?
400%
What was an advantage for West Germany in recovering from WW2?
Possessed large quantities of raw materials, particularly coal and iron.
Why was the long-term damaged caused by the war not feared as much in West Germany?
The West did not suffer the considerable loss of resources taken in reparations that the East did.
How did the arrival of refugees from the East benefit West Germany?
Provided a regular supply of labour, which was often cheap and qualified.
What did Erhard believe the aim of the social market economy lay in?
Rising consumption and economic growth.
What was the issue with social market in the beginning?
The steep rise in prices was not matched by the rate of wages, causing hardship.
How high was unemployment in 1949-50?
13.5%
What advantage did the FRG inherit?
It had access to extensive resources, such as, the Ruhr region and the country’s population was well-educated.
What did the Marshall Plan provide?
The economic context for recovery.
How much of the $12.7 billion from the Marshall Plan was the FRG given?
$1.5 billion.
What two western groups did west German exports receive another boost from?
ECSC in 1951 and the foundation of the EEC.
What demand expanded?
Capital and consumer goods.
How many houses were built?
Six million up to 1961.
What bank was created in 1957?
Bundesbank.
What was the issue with government expenditure?
More limited than other countries.
What did the FRG sign in 1952?
An agreement in London to pay debts from the Marshall Plan credits and the Dawes Plan.
What did Erhard’s own book show?
Pride at his economic success.
What have critics suggested about Erhard’s book and the economic miracle?
The country became somewhat obsessed with economic success, and the miracle was achieved at the expense of other factors.
