FRG economy

Question 1

Gov intervention policies during recovery

Answer 1

social market
-Investment aid 1952 gave 3.2 million to invest in industrial production
-Work schemes
-Price controls abolished + relaxed rationing
-New currency

Joined ECSC + EEC- lower tariffs

Anti-trust law to prevent monopolies and promote competition

Question 2

Impact of govt intervention

Answer 2

FUll employment by 1960’s

25% increase in industrial production 1950

80% increase in wages

Trade deficit of 3 Billion 1950s turned to profit by 1952

Question 3

External factors that explain economic miracle

Answer 3

general world recovery increased demands for exports

Mardshall aid- rebuild economy

1950-53 Korean war- increased production/ stimulated economy, increased demand

Question 4

What/. when was the Co-determination law

Answer 4

1951

After threates of mass strikes

Businesses with over 1000 employees had to have equal workers representation on supervisory boards

Question 5

When did FRG join
ECSC
NATO
EEC

Answer 5

1952
1954
1957

Question 6

Problems in Erharts Gov

Answer 6

Failed to convince US tio lower FRG contributions to US forces
-Criticism of the gov

FDP v CDU didnt know how to deal with recession
FDP withdrew from coalition, erhart resigned

Question 7

Measures to imporve the economy after the recession (4)

Answer 7

1967 Stabilisation Law: formalised the possess of cooperation in econ difficulties

New SPD/ CDU coaltion cooperated closely

1967 5 Year financial plan to coordinate budgets

Aimed to expand higher education opportunities, healthcare, infrastructire

Question 8

Impact of policies to improve the 1965-69 recession (3)

Answer 8

By 1968 unemployment fell

Industrial growth 6% a year

Inflation reduced to 1.5%

Question 9

consequences of the Oil crisis (4)

Answer 9

Oil prices increased 70%

Had to pay 17Billion for imports

Balance of payments went from surplus to deficit of 700million in a year

Increased unemployment also meant less tax

Question 10

How did Gov deal with oil crisis (5)

Answer 10

Banned recruitment of guest workers

Switched to nuclear

Gov gave grants to priv sector

Car free sundays

abolition of restrictions on mergers

Question 11

Impact of joining ESCS

Answer 11

Treaty of freindship

Coal trade increased X10 between members

Welfare: provided 100,000 appartments + redeployment schemes

Question 12

mpact of joining EEC

Answer 12

By 1982 25% chemical goods supplies by FRG

Question 13

Main problem 1980’s

Answer 13

Unemployment peaked 1981
1.7 million

Question 14

Kohls policies

Answer 14

Limited spending- cut welfare/ social spending
Increased privatisation-

Question 15

Impact of Kohl

Answer 15

1987 unemployment at its lowest
Balance of payments went from 73 billion to 134 billion

Question 16

Car ownsership

Answer 16

Increased 2 million to 12 million