How accurate that the post-war ‘economic miracle’ was the most impressive period of German industrial growth in the period 1871-1990? Flashcards
What should constitute an impressive period?
A period that successfully overcomes extreme adversity
What two milestones had been reached by 1973 that suggest that there was an economic miracle?
By 1973 Germany was the strongest economy in Europe and the third largest economy in the world
Who was the FRG’s economics minster
Ludwig Erhard
What kind of economy did economics minster Ludwig Gerhard pursue?
Social market
In the FRG, by how much did GDP grow by in 5 years?
GDP grew by 12% in 5 years
What helped GDP to grow by 12% in 5 years in the FRG?
cooperative union sector that restricted wage increases
What was the progressive economic policy introduced in 1951?
co-determinism
Explain the 1851 policy of co-detemrinism
any business with over 1000 employees in the iron and steel industry had to allow representatives of the workforce to have a say in the running of the business
What was the progressive economic policy introduced in 1952?
Works council
Explain the 1852 economic policy of a works council
facilitated discussions between employers and employees, making it difficult for employers to restrict wage increases
What military circumstances did the FRG economy respond well to?
The Korean war 1850-53, where Germany produced goods for the US army
What economic external circumstances did the FRG respond well to and how did they do it?
changing economic environment in Europe, turning away from heavy industry and mining and instead to advanced machinery, electronics, cars, and services such as banking.
What comparison to Britain can be made with the FRG which suggests that the economic miracle was more impressive?
The country was destroyed to a far greater extent that Britain, but still managed to overtake their economy.
What did the USA give the FRG that makes the economic miracle a less impressive feat?
$1.3 billion marshall plan aid initially, with a total of $2 billion ever
How much of the Marshall Plan aid was aimed at developing coal-mining, railway, electrical, steel and iron industries?
$99 million
When the FRG did adapt to a service based economy after the changing economic environment in Europe, what happened?
there was an economic slowdown, even compared to neighbouring countries such as France and Italy
What was the FRG not militarily involved in that makes the economic miracle less impressive?
Cold War directly
What did the FRG not have to do, thanks to the legacy of Versailles, that makes the economic miracle less impressive?
Reparations
Complete the sentence: It could be said that Germany did not execute a miracle as much as
a simple re-establishment of its economy following WW2
Though Bismarck did not face a crisis in the way that most other periods in German history did, what did he face instead?
he faced a blank slate of a relatively unindustrialised country
During the Kaiserreich, what happened to German scientists and what two things did they initially develop?
German scientists worked at the cutting edge of technology, developing the world’s first electrical generators and synthetic dyes.
Under Bismarck, what were major features of Germany’s second industrial revolution?
New industries such as machine tools, chemicals and electricity
Why was Bismarck’s economy impressive compared to other competing counties?
Britain was still using mostly steam power
Between 1890 and 1913 by how much did electrical output increase by each year under Bismarck?
18%
What electrical company was founded, later known as AEG, and when was it founded?
1883 Deutsche Edison Gesellschaft
Describe Germany’s population increase under Bismarck?
increased from 50 million in 1890 to 60 million in 1910
What did the quickly increasing German population under Bismarck do?
create a huge domestic market and a huge workforce and meant that a boom led up to WW1
What is Cartelisation, which period was it used in and was it a good or bad thing for the economy?
Bismarck. Cartelisation meant that companies merged to reduce competition, creating a more secure employment for workers and maintaining wages. Whilst this was domestically successful, it was internationally uncompetitive.
When did Chancellor Caprivi make economic treaties, suggesting that the Kaiserreich system of growth was impressive?
1890-94
With whom did Chanellor Caprivi make treaties with 1890-94?
Italy, Russia, Belgium, Switzerland
Thanks to chancellor Caprivi’s treaties between 1890 and 1894, by when had Germany become the biggest industrial nation in Europe?
1900
Thanks in part to chancellor Caprivi’s treaties between 1890 and 1894, describe the rise in the value of German exports
1872-1914 value of exports increased by £365 million
By the end of the Bismarckian system, what had the German mark become almost as strong as?
British Pound
Bismarck’s era set what for Germany, most impressively?
The tone for its economic dominance of Europe over the next century
Making the Bismarckian era of growth less impressive, what was happening to exports before Bismarck got on the scene?
German exports increased at a rapid rate before Bismarck had even unified, with coal exported to Austria-Hungary, Belgium, France and Russia.
Before Bismarck unified in 1871, what had Germany already got?
The country already had a good stock of infrastructure, with 19 575 km of railway track by 1870.
Before Bismarck unified in 1871, what had already been discovered in the Ruhr, making industrialisation easier?
an already established coal field
Before Bismarck unified in 1871, what had already been discovered in Alsace-Lorraine, making industrialisation easier?
iron-ore
Despite the good infrastructure that Germany possessed before unification, what did unification actually lead to and when was this?
Economic Crisis by 1883
Bismarck’s dogmatic goal of unity could be said to have come at the expense of what?
Economic Growth
Summarise why the early period of Weimar was impressive?
It overcame the significant barrier of the legacy of WW1
Summarise why the latter period of Weimar was impressive?
it overcame the barrier of the problems that the economy suffered from 1923
By 1923, hyperinflation pushed the price of a loaf of bread to how much?
DM 9 million
What shows good economic management of the inflationary crisis?
1924 Stresemann introduced a new interim currency, the Rentenmark which was then replaced by the Reichsmark.
under Weimar, when did GDP grow significantly?
1925-29
Under Weimar, what happened by 1927?
industrial production had reached pre-WW1 levels
What was learnt by German industrial bosses travelling the USA?
Rationalisation, assembly lines and production methods
What fact about the Ruhr demonstrates the benefits of rationalisation under Weimar?
In the Ruhr the workforce declined by 33% but production increased by 18% per working hour.
What plan provided massive US investment to Germany, stabilising the Weimar economy and suggesting that the Weimar period was not actually all that impressive?
Dawes plan
What happened at the end of Weimar that suggests it want that impressive?
October 1929 WS crash
What made Germany hit worse than Italy and France by the October 1929 WS crash?
The Dawes plan had left a legacy of involvement that meant that Germany relied heavily on US investment.
By 1930, why was the German economy so vulnerable?
By 1930 many short term US loans had been withdrawn, loans which were over relied upon by the German economy.
What does the extent of the collapse suffered by Germany as a result of economic crash demonstrate?
That the previous period of growth was simply founded on US foreign investment, rather than actually impressive growth
When was the Weimar bank run, how much was withdrawn and how many major banks collapsed?
June 1931 there was a bank run with RM1000 million withdrawn and 3 major banks collapsing.
When did German Weimar unemployment peak and how many were unemployed?
6 million
What percentage of the German workforce faced unemployment due to the great depression?
40%
What percentage of the German shipbuilding workforce faced unemployment due to the great depression?
63.5%
What did the growth of private armies after the depression do?
extent of the unemployment and the extent of the discontent
What had the membership of the SA grown due to the depression?
By 1932, the SA had grown from 100 000 to 400 000
What was the SPD’s versions of the SA?
Reichsbanner
The Reichsbanner had how many men by 1932?
1 million men
Summarise why WW1 was remarkable?
the innovations that the wartime economy mandated
Who led the War Raw Materials Department in WW1?
Head of AEG walter rathenau
When was the War Raw Materials Department established?
Department in 1914
Give an example of what the War Raw Materials Department did?
fabricating materials necessary for armament that they couldn’t themselves import. This included nitrates from air for explosives.
What act under Hindenburg and Ludendorff directed the work of all men aged 17-60?
auxiliary service act 1916
What does the auxiliary service act 1916 suggest?
During ww1 there was a highly organised approach to the economy
How many died of starvation during WW1?
750 000
What was the rationing office in WW1?
Imperial Grain Office
Why was the Nazi period the most impressive period?
Because of how effectively it dealt with the eon comic problems of the WSC
What two things contributed to unemployment halving under the Nazis by 1934?
RAD and re-armament
What happened to the levels of 6 million unemployed by 1934?
Halved
When was there a Labour shortage under the Nazis?
1939
Why was there a Labour shortage under the Nazis?
expansion of building and network industries
What roads did the Nazis construct?
Autobahn
When did the four year plan start?
1936
Who was in charge of the four year plan?
Göring
What did the four year plan focus on?
German industry and rearming
By 1938, what percentage of gemrnan industry was focussed on re-arming?
44%
In what three material did Germany want to be self-sufficient during the Nazis?
rubber, petrol and oil
What did Speer head from 1942?
Central Planning Board
Thanks to Speer’s 1942 Central Planning Board, what happened in 1944?
industrial production actually peaked in 1944, despite the war, bombings and declining victories
What did the Nazi’s nuremberg law ideology do?
meant that millions of slave labourers in occupied countries all helped the economic output of the country.
What demonstrates the chaos of the Nazi economy?
two economic ministers of Schact and Göring, hampered the ability of an efficient state and was only resolved when Speer was put in charge of the central planning board in 1942.
What was the war reparations and debt that Weimar faced?
140 billion marks
