West German Economy (1966-89)
- Created by: PhoebeM
- Created on: 06-02-20 13:39
View mindmap
- West German Economy (1966-89)
- Economics Minsiter - Schiller (1966-1969)
- Stabilisation Law (1967)
- to improve cooperation between federal govt + employers/employees
- central govt powers could increase to alter taxes + raise loans to stimulate production under this
- to improve cooperation between federal govt + employers/employees
- greater govt power to direct economic policies
- reduced in public spending + raising taxes
- successful: unemployment and inflation reduced
- Disagreements over revaluing the DM = Coalition collapse (1969)
- Stabilisation Law (1967)
- Brandt (1969-1974)
- Oil Crisis (1973)
- Inflation exasperate in economy because of OPEC's actions
- had to pay DM17million more for its exports
- balance of payments went from surplus to deficit within year
- GNP at 0.4% by 1974
- Unemployment at 4.7% by 1975
- Car free Sunday - cut down on oil
- switch to nuclear instead of finite fossil fuels
- Revalue the DM
- rising by 3.66 to $1
- Effects of recession waring off - more social policies
- Educational Support Law - grants for poor students
- flexible retirement age - 63
- health insurance extended to different groups - e.g. self-employed
- Oil Crisis (1973)
- Kohl (1982-1989)
- reduced public spending + implemented tax cuts
- kept budget increases to max 3%
- increased privatisation annoyed trade unions
- exports rose to give favourable balance of payments surplus
- from DM73 (1985) to DM134 (1989)
- EEC
- by the 80s, the FRG dominated:
- clear idea of how they wanted EEC to develop
- being 'honest broker' - ready to pay more + make greater compromises
- supported interests of smaller member countries - trusted more
- by the 80s, the FRG dominated:
- Conclusion:
- 1949-1966 = social market economy
- 1966-1982 = more state intervention
- 1982-1989 = return to free market economy
- Economic history of the FRG = successful
- continued growth and success
- economic miracle formed basis
- while the recession (mid-60s) did threaten confidence...
- ...FRG remained strong such as its response to the oil crisis
- employees in public sector rose by 250% between 1950 and 1985
- Economics Minsiter - Schiller (1966-1969)
Similar History resources:
Teacher recommended
Comments
No comments have yet been made