Helmut Schmidt as Chancellor 1974-1982: successes and failures

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How Successful was Schmidt as Chancellor 1974 - 1982?

- Economic

- Political

- Political (Terrorism)

Economic

Successes

Created more jobs and stimulate investment

Tax Reductions

Increased child allowances

Bonuses for employers and workers prepared to relocate

Kept inflation to 6% - was good for an industrialised country at the time

Economic growth was 4%

Able to adapt his economic policy when economic downturns due to the two oil crises of 1973 and 1979

Growth rates still greater than between 1913 and 1950

Unemployment rates never got above 8% - despite the slump in demand

Failings

Improved economic situation did not last - 1975 unemployment was 1 MILLION and GDP fell to 1.6%

The fall in GDP led to moderate expenditure cuts

Reduction in tax concessions

2% increase in VAT

These actions angered the TU's and those members on the left side of the party

Most of the unemployed were not German so therefore were not recorded

Political

Successes

Chancellor for 4 terms - longevity

Failings

unemployment was always around - never really went away