The 'economic miracle', 1955-56

Question 1

the korean war

Answer 1

1950
- needed war supplies
- FRG banned from producing war supplies, but industrial goods, chemicals, steel and electrical
goods in greater demand as countries like USA shifted to war production
- 1955: FRG joined NATO; allowed to re-arm and produce war materials

Question 2

new investment

Answer 2

• businesses recovered by mid-1950s; invest in new efficient equipment
• high quality goods with low prices
• increased exports; businesses could employ more workers

Question 3

workers

Answer 3

• influx of refugees after war meant a large pool of ‘guest workers’
• needed training at first
• large pool kept wages low
• 3.6M workers came from GDR in 1950s; skilled and educated, wanted to be a part of west’s
  consumer culture
• most employed on short term contracts
• government saved money on education

Question 4

possible problems

Answer 4

• Erhard disliked the phrase ‘economic miracle’; saw Germany’s growth as a result of good economic
  planning and hard work
• businesses did their best for the economy; put profits back into business to expand factories
• growth could not continue at the rapid rate through the 60s
• once everyone bought their goods the first time, demand fell
• Berlin Wall stopped ‘free’ professionals

Question 5

economic miracle

Answer 5

Wirtschaftswunder

Question 6

national income

Answer 6

845B to 1,633B