AS Level History - Economic development and policies in Germany (3)

Ben C
Flashcards by , created over 3 years ago

AS - Level History - Germany (Economic development and policies ) Flashcards on AS Level History - Economic development and policies in Germany (3), created by Ben C on 04/08/2016.

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Ben C
Created by Ben C over 3 years ago
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Question Answer
--Changing living standards, 1933-39-- --Changing living standards, 1933-39--
How did the standard of living change in Germany? Became increasingly divided between that of conformist 'pure Germans' and that of people the Nazis saw as undesirable.
What happened on 18th August 1939, in terms of the Nazis cracking down on undesirables? All doctors, nurses and midwives had to report any babies and children under 3 years of age that showed signs of physical or mental disability.
How was this action intensified in October 1939, and how did this progress? -Nazis started the T4 campagin to get rid of disabled children. -Children could be send to 'specialist clinics' where they would be killed. -From January 1940. T4 programme extended for the old, mentally ill or chronically sick. 70,000 people died under the T4 programme.
What happened between October 1936 and July 1940, in terms of 'asocial' families? -Families could be declared 'asocial' (failed to pay rent, failed to keep a job or were alcoholic). -They were sent for about a year to be 're-educated' at Hashude (housing estate). -They would be re-educated in order to be able to be released into society as the Nazis 'perfect Germans'.
--The ordinary worker-- --The ordinary worker--
What was the issue with wages for the ordinary worker? -They were regulated so that workers didn't have too much money (since industry was geared towards war production) to spend on consumables. -Real wages only improved if a worker worked overtime.
Name one scheme that improved worker's lives, and what this scheme did. -Strength Through Joy. -This provided extras such as: • Provision of loans • Medical care • Extra food and vitamins for 'suitable' mothers. • Save for a Volkswagen.
--Social welfare-- --Social welfare--
What was the name of the Nazi social welfare programme? NSV (National Socialist People's Welfare)
What did the NSV aim to do? It divided the needy into those who 'deserved' help and those who did not. It aimed to: • Create a healthy nation and not care about the welfare of individuals.
What sort of schemes did the NSV set up? Ran Mother and Child programmes (kindergartens set up to indoctrinate the youth).
What impact did the NSV have on housing? -NSV controlled housing. -By 1939, NSV had over 1 million voluntary workers and about 500,000 block wardens who were responsible for 30-60 households.
From 1933, how did the Nazis appeal to the needy? What did they set up? How did people react to this? -NSV ran the yearly Winter Aid programme. -Relied on donations (hard to refuse to donate due to SA and blockwardens having brutal tactics). -Viewed NSV officials and volunteers as 'Nazi snoopers' to try to catch them out breaking the rules.
--What was the impact of the war on Nazi economic policies, 1939-45?-- --What was the impact of the war on Nazi economic policies, 1939-45?--
What was the major issue at the start of the war, in terms of war organisation? The Office of the Four-Year Plan was not managing war production well, due to the 'power race' from different industries organising their sectors of war (e.g. economics ministry; army, navy and air force; the war ministry).
How did Hitler sort this situation out? On 26th February 1940, Hitler made Fritz Todt minister of armaments and munitions with the task of organising industry to full production.
How did Todt try to fulfil his task and was this possible? -Todt wanted centralised control to make the industry as efficient as possible. -Other departments would accept this level of power (especially Goering), who carried on giving more and more resources to the air force.
What did Hitler himself do about the situation? -Tried to implement a policy of rationalising needs, updating factories and equipment to produce the most efficient weapons as efficiently as possible. -Wanted that the army, navy and air force keep their demands to a minimum. -DID NOT force the adoption of Todt's reorganisation and centralisation plans.
--The new system-- --The new system--
Who was Todt's replacement and what did he convince Hitler to do? -An architect named Albert Speer. -Convinced Hitler that the armaments minister MUST be fully in charge.
What did Hitler's decree of 22nd April 1942 do? -Set up Central Planning Board. -This distributed raw materials, decided on whether to build a factory or extend an existing one, organised transportation. -Had a variety of committees, made up of specialists, who were in charge of certain fields of warfare (e.g. tanks, ammunition etc).
What did these committees want to do? -Look at all factories producing the same equipment. -Close smaller factories, concentrating production into larger ones. -Standardise factory machinery so that repair was easier. -Adapt factories to increase efficient mass production.
What did the committees do in terms of workers? -Wanted production to become more mechanised so it could withstand the thousands of skilled workers that would be conscripted and replaced by less-skilled women. -By 1944, 13% of the workforce was in the army.
When did these big changes by Speer come in useful? -Due to Blitzkrieg, Germany gained a lot of land very quickly (tanks, armoured vehicles). -Germany only had to take over UK to dominate the West of Europe (planes, U-Boats). -Germany failed to take UK and instead initiated Operation Barbarossa (tanks, armoured vehicles). The new factory system allowed for a smoother transition in production, though delays still occurred.
--An overstretched economy-- --An overstretched economy--
In 1945, the economy was severely overstretched. What was war production badly affected by? -Allied bombing, which wiped out factories, mines, towns and transport links. -The loss of land that had provided raw materials (Upper Silesia's coal). -Damage to electricity, gas and water supplies. -Sabotage by foreign workers, deliberate 'mistakes' that damaged equipment and machinery.
What happened to food production? -Severely affected. -Farmers had to go to the Front. -Transport links bombed. PEOPLE WERE STARVING DUE TO THIS!
What took over? The Black Market, just like at the end of WW1.
--WHAT EFFECT DID THE CREATION OF A 'SOCIAL MARKET' ECONOMY HAVE ON THE FRG IN THE YEARS 1945-89?-- --WHAT EFFECT DID THE CREATION OF A 'SOCIAL MARKET' ECONOMY HAVE ON THE FRG IN THE YEARS 1945-89?--
--How far was economic recovery achieved in the years 1945-55?-- --How far was economic recovery achieved in the years 1945-55?--
What restrictions did the Allies put on the German infrastructure which damaged her economy? -War industries banned (munitions). -War-related industries (chemical industries) had their outputs restricted.
How did some zones deal with their factories and what was the effect of this? They dismantled the factories, which undermined any chance of an economic recovery in those zones.
Name two other factors that hampered any chance of economic recovery. -The RM was almost worthless (black market thrived) which meant that it was hard to get workers whose wages bought them close to nothing. -Transport and communication links crossed between zones.
What did many Germans decide to do and give an example of this? -Many Germans decided to leave or decided not to return to Germany. -E.G. 160,000 German prisoners of war in France stayed their after the war.
What was 'the refugee problem'? -Almost 10 million of these refugees came from Eastern Europe, who were expelled, under the reallocation of land and people agreed at Potsdam. -Some refugees found work on farms and helped to rebuild Germany's agriculture. -The rest needed housing and feeding which put a strain on Germany's already weak economy. -Also, those who had been taken as prisoners during the war (about 4.5 million) had to be housed and fed as well before returning home.
--West Germany after 1949-- --West Germany after 1949--
What was one of the major economic factors that caused the separation of FRG and GDR? -Allies gave FRG economic aid of almost $1.4 million which allowed the creation of the DM (Deutschemark).
What did the creation of the DM do? (2) -Helped to stabilise the economy. -Helped to break up the black market as the currency was backed by Western powers.
What did the creation of the DM mean for the GDR? -They had to create their own currency since they were not included in the DM. -This made separation more likely, until 1949, when Germany split into the FRG and GDR.
--Erhard and reform-- --Erhard and reform--
Who was appointed director of the economic administration in March 1948? Ludwig Erhard.
What style of economy to Erhard try to create under the Allies and then as economics minister (1949-1963), and what was this? -Social market economy. -A free market economy with the elements of social support for the poorest built in - a 'socially responsible' free market economy.
Which three things did Erhard announce in June 1948? -The RM would change to the DM. -Abolish all but essential rationing. -Abolish price controls.
How did the public act, due to these changes? -People stopped hoarding goods and started to sell them. -Shop with a more careful concern for price and quality as there would always be a supply.
What was the Equalisation of Burdens Act, passed by the Bundestag in 1952? It raised money from assets and redistributed it to help people start again.
What were some of the issues caused by Erhard's new economic system? -Factories and businesses still had to replace machinery and train workers. -Some businesses failed after the currency reform because they could not afford to pay the wages. -Other businesses had to lay off workers.
How was unemployment affected by Erhard's reforms? -Unemployment rose substantially: • June 1948 - 442,000 • January 1949 - 937,000 • 1950 - 1.8 million. However it did then start to decrease: • 1955 - 1 million and continued to fall.
What was the effect on production? -Car production in 1959 was 4.5 times greater than in 1950. -Steel production doubled (this underlined Germany's new focus on consumer goods).
--Opposition-- --Opposition--
Who did Erhard face opposition from and why? -Faced opposition due to wanting to convert the command economy into a social market economy. -Got this from: Bundestag and Economic Council.
Why did Britain oppose the reforms? Shared concerns with labour union leaders who feared a social market economy would lead to exploitation of the workers by business owners.
Who else wasn't supportive of the reforms? -Industrialists. -Socialists (not to support price fixing); this was because they wanted to nationalise industries and use state control, not allowing a capitalist market to set its own levels.
In layman's terms, why did Erhard gain enough support to continue his policies? Erhard had created a capitalist market with a responsible government that provided a social safety net for the poorest.
What did his policies allow businesses to do? -Have tax concessions. -Remove wage restrictions.
What did Erhard encourage, to try to lessen the impact of the disadvantages of the social market economy? The creation of trade unions to make sure that workers had adequate representation in wage negotiations.
In 1951, the policy of co-determination was introduced. What was this? As all businesses had workers' councils, it seemed only fair that co-determination was allowed which was: The permission of workers' representatives on managerial boards in industry.
--The economic miracle, 1955-66-- --The economic miracle, 1955-66--
Why was the German economy called an economic miracle after 1955? The German economy improved extremely rapidly.
Name 3 factors that contributed towards the economic miracle. -The Korean War. -New investment. -Workers.
Why did the Korean War help towards the economic miracle? -During the Korean War, the demand for war goods increased, especially from the USA. -FRG was banned from producing these. -1955, FRG joined NATO. -FRG allowed to re-arm and start producing war materials, boosting the economy.
What had happened to the state of businesses from the mid-1950s onwards? They had recovered sufficiently to be able to invest in new, more efficient equipment, and even new factories.
What was the new aim of German businesses? To produce high-quality goods and keep their prices as low as possible to compete with each other, as well as on the international stage.
What happened to German reputation after the mid-1950s, and what did this allow for? -It improved dramatically and exports grew as a result of this. -As exports grew, businesses could invest more and employ more workers. -Manufacturers of consumer goods could also buy more raw materials, increasing production and therefore profits.
As for workers, how did the refugees impact on the workforce? The influx of refugees after the war created a large pool of 'guest workers' for businesses to draw on.
What was the initial problem of the refugees, and later the major advantage of them? -Initial problem was that many were unskilled and therefore needed training. -After this problem was overcome, they provided an efficient workforce. -Due to the fact it was a large pool of workers, wages could be kept low.
How did the migration of people from the FRG to GDR help the German economy? -Almost 3.6 million people migrated from FRG to GDR during the 1950s. -Many of them were young, skilled and highly educated (doctors and engineers). -They all wanted to be part of West Germany's consumer culture. -This helped the economy twice over.
How did the save the government money and where did they invest their savings? -Government didn't have as many people to train, therefore didn't have to invest as much into education. -Could spend this money elsewhere such as providing funding for housing construction.
--Possible problems-- --Possible problems--
How did Erhard view the phrase 'economic miracle'? -Disliked it a lot. -Thought it still had a lot to do with good economic planning and hard work by German people, such as: --Businesses investing their profits back into expansion of business, increasing production and profits.
What happened to growth after the initial exponential increase? -Once everyone had bought their consumer goods for the first time, demand fell to a lower level as people replaced these goods at different times.
What was the effect of the Berlin Wall on the FRG economy? -It stopped workers crossing form the GDR to FRG. -This reduced the 'free' professionals that had helped the expanding economy.