FRG - Economy Flashcards
1
Q
What problems did the FRG face in its early periods?
A
- Ban war industries to prevent another war
- French and the Soviets Dismantled factories for reparations
- Reichsmark Was worthless
- 160,000 Prisoners of war stayed in France rather than returning
- 10 million refugees entered the country
2
Q
Economic miracle stats
A
1949
- Job unemployment fell from 11% to 1.2%
- National income doubles from 845 billion Dm to 1.63 Billion DM
- Living standards rose after 1952
3
Q
How Much Marshall Aid did. Germany Receive?
A
1.5 Billion Dollars
4
Q
What were Erhard’s Reforms?
A
- Introduction of new currency - Deutsche Mark 1948
- Economic council gave him the power to abolish all but the most essential rationing 1948
- He fixed wages until November 1948 to allow businesses to reestablish themselves
- Question of Burdens act - Money which raised by taxing property redistributed to help many people start again
5
Q
Results of Erhards Reform
A
- Less hoarding of food and supplies, started selling them as they knew that supply would be less.
- People started debating prices instead of just paying for them as set prices
- The currency Reforms only effected cash and savings
6
Q
Social Market economy
A
- A free market economy with elements of social market support for the poorest built in a social responsible free market economy.
7
Q
Recovery Statistics of Erhard policies
A
- Some businesses had to lay off workers or close because of the new currency reforms
- Unemployment rose from 442,00 in 1948 to 937,000min January 1949 in 1950 it was as high as 1.8 million but it began to fall reaching 1,000,000 and continued to fall
- Production grew by 450% between 1950 to 1959
8
Q
Benefits of the Korean War
A
- Increased exportations of ammunitions and war equipment
- Increased Jobs, decreased unemployment , improved economy
9
Q
How many houses did Adenauer make?
A
4.5 million
10
Q
What was the German Turkish Agreement 1961?
A
Bringing in Turkish Guest workers to help rebuild Germany after the war.
