FRG - Was there an economic miracle?

Question 1

When was the Korean War

Answer 1

1950

Question 2

In 1950, war in Korea sparked a need for …………..
The FRG was ……. from producing these,
but, its …… ,…….. ,…… ,&……..goods were now in greater demand because other countries, such as the USA had shifted to

Answer 2

• war supplies
• banned
• industrial goods, chemicals, steel and electrical
• war production

Question 3

How did the Korean War help the FRG

Answer 3

• In 1955, the FRG joined NATO,
• & was then allowed to re-arm and to start producing war materials. mainly as a result of the war

Question 4

Describe the new investment in the FRG

Answer 4

• Many businesses had recovered sufficiently by the mid- 1950s to be able to invest in new, more efficient equipment, even new factories
• They concentrated on producing high-quality goods and kept their prices as low as possible to compete

Question 5

How did new investment help the FRG

Answer 5

• The reputation of German goods improved and exports grew as exports grew so businesses could invest more and employ more workers
• Manufacturers of consumer goods could also buy more raw materials

Question 6

Describe the refugee situation immediately after the war

Answer 6

• Workers: The influx of refugees immediately atter the war meant there was a large pool of guest workers for businesses to draw on.
• At first many of these needed training, but once that problem was overcome they provided an efficient workforce, and the fact that there was a large poel of workers kept wages low

Question 7

How did the refugee situation immediately after the war help the FRG

Answer 7

• At first many of these needed training,
• but once that problem was overcome they provided an efficient workforce, and the fact that there was a large pool of workers kept wages low

Question 8

How did the refugee situation from the 1950s help the FRG

Answer 8

• Buring the 1950s, about 36 million all actively secking work and also wanting to become part of the West German consumer culture, thereby helping the economy twice over.
• The government saved the money that would have been spent on education costs, training people in the FRG, and could use it elsewhere, for example, funding housing construction

Question 9

Describe the refugee situation from the 1950s

Answer 9

• During the 1950s, about 36 million more workers came to the FRG from the GDR, many of them young, skilled and highly educated (for example, doctors and engineers)
• Most of them were employed on short-term fixed contracts

Question 10

What was the marshall plan in terms of Germany

Answer 10

• Relations between the USSR and the West deteriorated rapidly,
• By 1951, Germany was given 1.55billion of the Marshall Plan
• which set oft the creation of the Deutschmark (DM) to administer the aid

Question 11

How did the marshall plan help Germany

Answer 11

• The new currency helped to stabilise the economy, providing economic stimulus & an important boost in morale to the emerging state
• & break up the black market as the currency was backed by the Western powers

Question 12

How can it be seen that the marshall plan did not help Germany

Answer 12

• It led to the Soviet zone setting up its own currency because it was not included in the DM. and it made separation more likely
• By the end of 1949, Germany had divided into the Federal Republic of Germany (FRC) and the German Democratic Republic (GDR)