FRG Economics 1945-89
- Created by: agracex
- Created on: 04-02-24 16:05
Fullscreen
Context: 8 May 1945 Germany surrendered. The german economy was ruined and people were starving. Allies occupated the country
Problems in the German economy after WW2:
- Rationing introduced to deal with refugees and homeless
- Transport links crossed zones which hindered the economy
- Hyperinflation
- Wages and prices were controlled
- Reichsmark was worthless
- Shops were empty
- Markets broken down
How the West German economy recovered between 1948-52:
- Marshall Plan 1948- economic aid given to Western zones which set off the creation of Deutschmark
- Duetschmark- new currency helped stabilise the economy and breakup the black market
- Erhard's reforms: 24 June given power to abolish almost all essential rationing and all price controls, meant that cakes, veg, butter for sale. People stopped hoarding goods
- Equalising of Burdens Act- Tax on all assets to help those who lost everything, helped people start again
Erhard did not bring immediate economic recovery:
- Some businesses failed after currency reform as they couldnt afford to pay wages. Other businesses managed to keep going but had to lay off workers -> Unemployment rose 1948-50 but began to fall
- Car production in 1959 4x more than 1950
- Steel production doubled
The Economic Miracle 1955-66:
1955…
Comments
No comments have yet been made