FRG Economy

Question 1

When was the ‘Economic Miracle’?

Answer 1

1955-1966

Question 2

What happened to Unemployment from 1950-1960?

Answer 2

1950 - 11% Unemployment

1960 - 1.3% Unemployment

Question 3

What was government intervention during the economic miracle?

Answer 3

• Work creation schemes rebuilt German cities and tackled Unemployment
• Investment Aid Law 1952 provides DM3.2 billion to industrial development
• Joining the EEC (European Economic Community) part of trade nations and supplied large amounts to partners
• Anti Trust Law 1957 - prevent and dismantle cartels
• Banking controls - control inflation and the circulation of money

Question 4

How much of certain products did the FRG supply to the EEC by 1989?

Answer 4

23% of motor vehicles
17% of electrical goods
25% of chemical goods

Question 5

What external factors helped with the economic miracle?

Answer 5

• Marshall Plan - 1.5 billion in aid from USA from 1948-52 to rebuild and modernise
• Korean War 1953 - Rise in demand for German exports like motor vehicles
• Emigrants - By the 1960’s full employment was reached so needed more emigrants for jobs mainly from East Germany

Question 6

What factors unique to Germany helped with the economic miracle?

Answer 6

• Limited defence spending
• Exports - Germany industry had a reputation for quality and value
• Co-determination - Allowed Workers to represent themselves and create better relations with employers

Question 7

What was the Halstine Doctrine?

Answer 7

Looking west to improve the economy - France, UK, USA

Question 8

How much of the EEC budget did the FRG supply and invested in by late 1980’s?

Answer 8

Supplies 25% of budget and invested around 56 billion

Question 9

How many apartments did the government provide for coal and steel workers?

Answer 9

Over 100,000

Question 10

Improvements of living standards

Answer 10

• Employees in the public sector rose 250% from 1950-1985
• Housing went from 0.9 person to 1.5 people per room
• 12 million cars owned by 1965
• Inflation dropped to 3% by 1985
• Disposable income was an average of 904DM in 1964

Question 11

When was the Equalisation of Burdens Act?

Answer 11

1952

Question 12

When did the FRG join the EEC?

Answer 12

1957

Question 13

When was there a recession in the FRG?

Answer 13

1966-1967

Question 14

When were the two Oil Crisis’s?

Answer 14

First Oil Crisis 1973

Second Oil Crisis 1978

Question 15

When did Kohl impose cuts?

Answer 15

1982-1985