Why Was There An Economic Miracle In West Germany Flashcards
Which historian has argued it was not a miracle because it did not defy explanation?
Richard Overy
What was the annual growth rate in FRG between 1951 and 1965?
8%, reaching 12% in 1955
What is some facts about gross national product in the FRG in the 1950s?
Almost doubled between 1950 and 1955 and by 1960 had risen by nearly another 50%
Who was the third largest trading power in 1954 behind the USA and Britain?
West Germany
In terms of employment how was the FRG doing?
They experienced a period of full employment
How much was FRG growth levels in the 1950s?
All Industry: 1951 - 109.6, 1959 - 179.8
Mining: 1951 - 107.2, 1959 - 158.1
Consumer goods: 1951 - 108, 1959 - 186.1
Food: 1951 - 113.8, 1959 - 180.5
What was the FRG advantages economically?
It possessed large quantities of raw materials, particularly coal and iron
The long-term damage from the war was not as costly as feared, with the East facing considerable losses from relations from the USSR
A population that had many with technical skills
The arrival of refugees offered a regular supply of labour, which was often cheap, qualified and well disciplined
What helped start the FRG economic recovery?
The creation of Bizonia in 1947, with the removal of price controls, and currency reform in 1948 stimulated business
Two key bits go legislation in the FRG in early 1950s?
Co-determination Law of 1951 and Works’ Constitution Law of 1952
What was the rise in industrial production index for Bizonia between June 1948 to December 1948?
51% to 78%
Though what years was there a recession in the FRG?
1949-1950
What policy did the Christian Democrats use in the FRG?
‘Social market economy’, the end of state regulation, but not unrestrained capitalism, economic freedom accompanied by social justice and security so that the state intervened ti ensure ‘prosperity for all’
Who’s working implementing currency reforms in the Western zones was crucial?
Ludwig Erhard
What was the initial negatives to the currency reform in the FRG?
In 1950 the insufficient demand and lack of foregoing investment made it difficult to sustain growth and there was a recession
Which war created more exports for the FRG?
Korean War
