1.3 FRG Economic development and policies

Question 1

After WW2, which industries were banned

Answer 1

any considered war-related e.g. Munition + Chemicals

Question 2

how were reparations paid off

Answer 2

Taken in equipment and machinery

Question 3

How many German POW stayed in France after WW2

Answer 3

160,000

Question 4

what was the price of 1kg sugar in 1947
what did it mean for the currency

Answer 4

priced at RM1, but only available on Black market for RM180
RM worthless

Question 5

how many germans returned from Eastern Europe or East Germany

Answer 5

10 million (many became homeless)

Question 6

when was the Marshall plan

Answer 6

1948

Question 7

How much did the Marshall plan give Western Zones

Answer 7

$1.4 million

Question 8

what did Marshall plan lead to

Answer 8

Creation of new stable currency Deutschmark (DM)

Question 9

what did Erhard believe in

Answer 9

Free market Economy with social support for poorest

Question 10

when was Adenauer chancellor

Answer 10

1949-63

Question 11

when was Erhard chancellor

Answer 11

1963-66

Question 12

When was Kiesinger chancellor

Answer 12

1966-69

Question 13

when was Willy Brandt Chancellor

Answer 13

1969-74

Question 14

When was Helmut Schmidt chancellor

Answer 14

1974-82

Question 15

when was Helmut Kohl Chancellor

Answer 15

1982-98

Question 16

When was new DM (Deutschmark) announced

Answer 16

June 1948

Question 17

what were Erhards reforms when he was Director of Economic administration

Answer 17

• Rations abolished except essentials (bread)
• Until Nov 1948, wages fixed
  (meant more food/consumer goods available)
• Shopping and confidence grew

Question 18

When was Equalisation of Burdens Act passed

Answer 18

1952

Question 19

What was the equalisation of Burdens Act

Answer 19

Tax on assets, redistributed to help many start again

Question 20

Were Erhards reforms successful

Answer 20

Econ recovery not immediate but gradual

Question 21

what happened due to currency reform (Erhard Econ Policy)

Answer 21

Business couldn’t afford to pay wages
Unemployment increase late 1940s

Question 22

what was the change in Unemployment from 1948 to 1955

Answer 22

June 1948 = 400,000
Jan 1949 = 900,000
1950 = 1,800,000
1955 = 1,000,000

Question 23

what was car production in 1959

Answer 23

4.5 x greater than in 1950

Question 24

what was steel production like in 1959

Answer 24

double the 1950 levels

Question 25

What did Erhard create that gave workers more rights

Answer 25

Policy of Co-determination (allowed for workers reps on managerial boards in industry)

Question 26

when was the Policy of Co-determination

Answer 26

1951

Question 27

Who opposed the idea of Erhards Social market economy

Answer 27

Economic Council + Britain also labour unions (fear it would exploit workers)

Question 28

How did the Korean War impact German Economy

Answer 28

Sparked need for war supplies, FRG been banned from making those, by joining NATO (re-arm + start producing)

Question 29

when did FRG join NATO

Answer 29

1955

Question 30

How did Business investment help FRG economy

Answer 30

Many businesses recovered, invested in efficient equipment/Factories Quality increased FRG reputation increased Exports increased

Question 31

by 1960, How many VW exporting to UK every year

Answer 31

16,000

Question 32

What were problems Erhard Faced

Answer 32

- Growth couldn't keep up with 1950s rapid rate - Aug 1961 - Berlin Wall put up - Berlin Wall reduced 'Free professionals - demand for consumer goods decrease

Question 33

what was the difference in Exports from 1950 to 1970

Answer 33

1950 = 8000 (million Marks) 1970 = 120,000

Question 34

how did unemployment change from 1950 to 1971

Answer 34

1950 - 8.1% 1971 - 0.7%

Question 35

what was Real growth of German economy in 1951-1966

Answer 35

1951 - 10.4% 1966 - 2.9% shows stability

Question 36

How much was spent on Social Welfare in 1965 and 1970

Answer 36

1965 - DM 45 million 1970 - DM 115 million increase despite benefits cuts

Question 37

What did Schmidt persuade powers to do

Answer 37

Not introduce protective tariffs during 1st oil crisis (1973)

Question 38

When was the Recession of the FRG

Answer 38

1966-67

Question 39

What did the first economic recession do

Answer 39

Hurt confidence, reduced trade, increased unemployment