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
