Economic development and policies, 1918–89 — Edexcel A-Level History
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Economic development and policies, 1918–89 explained
Economic development and policies, 1918–89 covers 3 specification points, including Economic crises and government response,… and Attempting economic recovery, 1933–36;….
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Open a point below for its explanation and revision guidance.
Reacting to economic challenges, 1918–32: economic crises and government response, 1918–23; policies for recovery, 1924–28; impact of, and response to, the Great Depression, 1929–32; changing living standards, 1918–32.
This topic traces how one state met economic shocks across 1918–32. Study the crises of 1918–23: wartime disruption, hyperinflation and the government's stabilising response, such as the 1923 currency reform. Then examine recovery policies of 1924–28, including foreign loans and industrial reorganisation, and judge how far they restored output and confidence. Next analyse the Great Depression after 1929: its causes, the unemployment it produced, and the government's shifting response, from orthodox retrenchment towards intervention. Finally assess changing living standards throughout, comparing industrial workers, farmers, women and the unemployed, and weighing wages, prices, hours and welfare against insecurity. Use economic data and contemporary voices as evidence, and evaluate continuity and change rather than listing events.
Controlling the economy, 1933–45: attempting economic recovery, 1933–36; creating a command economy, 1936– 39; changing living standards 1933–39; impact of war, 1939–45.
This topic examines state control of the economy from 1933 to 1945. Begin with recovery attempts in 1933–36: public works, rearmament and measures to cut unemployment, and judge how far they revived output. Then study the command economy of 1936–39, including central planning, targets and the priority given to heavy industry and armaments, and assess the costs as well as achievements. Next analyse changing living standards 1933–39, comparing workers, peasants, women and consumers, and weighing rising employment against shortages, rationing and coercion. Finally evaluate the impact of war, 1939–45: evacuation of industry, total mobilisation and the human and economic price. Use production figures, plans and testimony as evidence, and argue about the degree of state control and its consequences rather than narrating events.
Creating a social market economy, 1945–89: economic recovery, 1945–55; the ‘economic miracle’, 1955–66; surviving economic challenges, 1966–1989. Integration into the European economy, 1949–89; changing living standards, 1945–89.
This topic examines West Germany's economic transformation. Creating a social market economy, 1945–89, combined free-market competition with social welfare, aiding economic recovery, 1945–55, via currency reform (1948) and Marshall Aid. The 'economic miracle', 1955–66, saw rapid growth, full employment and rising exports. Surviving economic challenges, 1966–1989, involved managing the 1966–67 recession, 1970s oil shocks, and rising unemployment. Integration into the European economy, 1949–89, included the ECSC (1951) and EEC (1957), boosting trade. Changing living standards, 1945–89, saw marked improvements in wages, consumer goods and welfare, though inequalities persisted.
Your focus
- Explain the causes and consequences of the 1918–23 economic crises and the government's response.
- Assess the extent and limits of recovery policies in 1924–28.
- Evaluate the impact of the Great Depression and changing living standards, 1918–32.
Show all 9 objectives
- Explain recovery attempts 1933–36 and evaluate their economic effects.
- Analyse how the command economy of 1936–39 worked and what it cost.
- Evaluate changing living standards 1933–39 and the economic impact of war, 1939–45.
- Describe the key features of the social market economy and its role in recovery 1945–55.
- Analyse the causes and consequences of the 'economic miracle' 1955–66.
- Evaluate the extent to which West Germany successfully met economic challenges 1966–89 and integrated into Europe.
Economic development and policies, 1918–89 exam tips
Marking Points
- Explains the 1918–23 crises: wartime dislocation, reparations pressure, hyperinflation and the government's currency stabilisation response.
- Assesses recovery policies of 1924–28, such as foreign loans, currency stability and industrial rationalisation, and their limits.
- Analyses the Great Depression's impact after 1929 and evaluates the government's response, including retrenchment and later intervention.
- Judges changing living standards 1918–32 across social groups, using wages, prices, employment and welfare as evidence.
- Builds a sustained argument about how far government action, rather than external recovery, shaped outcomes.
- Explains recovery attempts 1933–36, such as public works and rearmament, and evaluates their effect on unemployment and output.
- Analyses the command economy 1936–39: central planning, targets and heavy-industry priorities, with their achievements and costs.
- Judges changing living standards 1933–39 across workers, peasants, women and consumers, using employment, wages and shortages as evidence.
- Evaluates the impact of war 1939–45, including industrial relocation, total mobilisation and human and economic costs.
- Sustains a judgement about how far state control, rather than other factors, drove economic change.
- Explains how creating a social market economy blended free-market principles with social welfare, promoting economic recovery, 1945–55.
- Assesses the causes and extent of the 'economic miracle', 1955–66, including export growth and labour supply.
- Evaluates surviving economic challenges, 1966–1989, such as the 1966–67 recession, the 1973 oil crisis, and rising unemployment.
- Analyses West Germany's integration into the European economy, 1949–89, including the ECSC and EEC.
- Assesses changing living standards, 1945–89, considering wages, consumption, welfare and regional or social disparities.
Examiner Tips
- 💡Anchor each phase with a dated example and a statistic, then explain its significance.
- 💡Compare groups explicitly when discussing living standards, rather than generalising about 'the people'.
- 💡Plan paragraphs around change and continuity, not a chronological list.
- 💡Use a plan or production figure as evidence, then explain what it shows about state control.
- 💡Compare social groups when assessing living standards, rather than generalising.
- 💡Frame conclusions around degrees of control and their consequences.
- 💡Use specific economic data, such as GDP growth rates or unemployment figures, to support arguments.
- 💡Link economic developments to their social and political consequences to show depth.
- 💡Compare different periods to highlight change and continuity across 1945–89.
Common Mistakes
- Treating hyperinflation as simply money-printing: correct by linking it to reparations, deficits and the 1923 currency reform.
- Assuming recovery in 1924–28 benefited everyone equally: correct by contrasting industrial and agricultural experience.
- Describing the Depression as only an American event: correct by tracing its transmission and domestic responses.
- Equating recovery with prosperity: correct by distinguishing falling unemployment from low real wages and shortages.
- Treating plans as automatically fulfilled: correct by noting shortfalls, bottlenecks and coercion.
- Assuming war only damaged the economy: correct by weighing industrial relocation and mobilisation against devastation.
- Error: treating the 'economic miracle' as solely due to Marshall Aid. Correction: recognise multiple factors, including currency reform, Erhard's policies, and a skilled labour force.
- Error: assuming living standards rose uniformly. Correction: note that prosperity was uneven, with guest workers and some groups facing poorer conditions.
- Error: confusing the dates of European integration. Correction: remember the ECSC was established in 1951 and the EEC in 1957.