FRG Economy Flashcards
(26 cards)
Marshall Aid totalled to …….. between 48 and 52
$1.5 billion
Deutschmark introduced which had…. less in circulation than RM
90%
Unemployment fell from ……. 1950-60
11% in 1950 to 1.3% in 1960
Reasons for the Economic Miracle - 1955 - 66
Investment Aid Law 1952 - provided 3.2 billion to industrial devlopment
- Joined EEC reducing tarrifs, Germany exported 23% of vehicles to Europe
- Work schemes rebuilt cities
Erhard resigned in
1966
CDU/SPD coalition grew economy by ….. in 1969
8.2%
Oil crisis of 1973 meant
OPEC announced 70% increase in oil price and 5% decrease in supply
Evidence of changing living standards
Car ownership rose from 2 mill in 1950 to 12.1 mill in 1960
Investment Aid Law 1952 granted …. to industrial development
DM3.2 BILLION
When was ECSC set up and what impact did it have on FRG
1951 - coal trade increased x10 amongst members
What were some of Erhard’s reforms
- Abolished price controls
- Reichmark became Deutschmark (90% less in MS)
- Tax reforms - over 2400 dm decreased from 85% to 18%
- Social market economy - more TUs, no monopolies
What impact did Erhard’s reforms have on absenteeism, production and employment
- Absenteeism halved from 9.5 hours a week to 4.2
- Unemployment fell from 11% in 1950 to 1.3% in 1960
- Industrial production rose 50% from June-December 1948
1949-55 salaries rose …. %
80%
When was the EEC set up and why did the FRG benefit so much
1957 - FRG exported 17% of Europe’s electricals, 23% of chemicals and 25% of vehicles.
balance of trade went from ….. in 1950 to …. in 1960
-3 billion to 5.2 billion DM
By 1958, industrial production was …..X the amount at beginning of 1948
4x
Car ownership statistic
1950 - 2 mill
1965 - 12.1 mill
Consquences of 1965-69 recession
Trade and production fell, unemployment increased
How did the gov deal with the 1965-69 recession
- increased welfare spending from 25% to 33% of gdp
- introduced economic stabilisation law in 67 allowing gov to intervene
- introduced cartels to stop prices rising
- DM revalued - increased 9.3% - because Xs were good quality people paid the extra
Consequences of Oil Crisis for Germany
GNP fell from 5.3% in 1973 to 0.4% in 1974
Had to pay 17bill DM more for imports
Debt increased 26% by 1975
How Germany dealt with oil crisis
Car free sundays, ban on migrant worker recruitment, nuclear energy research, 8billion DM grants to private sector, abolished monopoly regulations so they could benefit from Eos
Average growth rate in the 1980s
3.6%
How did cost of living fall from 1950-1990
1kg of pork was 2.5hrs of work in 1950, 0.33 hours by 1990
Housing ownership only …. compared to around …. in most of Western Europe
37.8% compared to 50%
