Economic Revovery FRG

Question 1

War industries

Answer 1

• banned ammunition + war productions

-

Question 2

Problems

Answer 2

• french and soviets dismantled factories for reparations
• reichs mark was was worthless ie. On black market sugar was sold for 120RM fixed rate - ppl stil went to black market
• transport and communications cut through zones so hampered eco recovery
• zone run by military high command

Question 3

Marshall plan

Answer 3

1948 - providing aid to devastated countries

germany would pay back 1.1 bil dollar - 1953 decided

Question 4

Codetermination law 1951

Answer 4

Gave workers the right to participate in managment of the companies they work for
2000 employees required to elect 1/3 board

Question 5

Stabiliastion law 1967

Answer 5

Formalise cooperation between government employers and unions
Make fiscal intervention against a disturbance of the macroeconomic equilibrium mandatory

Question 6

CDU/CSU

Answer 6

promised “no experiments” in his appeal for a desire for stability

Question 7

timeline

Answer 7

currency reform 1948/RM to DM

cut taxes - erhards advice

Question 8

income tax rates

Answer 8

• any income over 6k dm tax rate was 95%

- after tax reform 95% only applied to income over 250000dm

Question 9

purchasing power of wages increased

Answer 9

to 73%

Question 10

korean war

Answer 10

helped to double the value of exports after the war. Gastarbeiter (“guest workers”, since the late 1950s)