erhard era

• 1963 - erhard became chancellor of FRG , inherited criticisms levelled at Adenauer's regime
• domestic policies he introduced:

  • introduced social welfare reforms
  • focused gov spending on education (extending length at compulsory education and standardising the education system) and housing benefits
• Erhard aimed to renunify Germany and believed if he offered $25 billion loan to USSR , they would permit german unification

  • plan never happened as Krushchev (first secretary of communist party during cold war) fell from power , USSR got loans for elsewhere
• supporting US and alienating France:

  - Erhard had a bad relationship with French leader Charles de Gaulle

  - Erhard supported US in Vietnam War

  - US prioritized Asia over West Germany (in terms of Vietnam War)

  - Erhard did not realize US acted in its self-interest, not Europe's.
• gov budget:

  • west germany had budget deficit
  • in minor recession in 1966 Erhard increased taxation
  • factions within gov defected (many disagreed with his choice to raise taxations , weakened his position and erhard resigned)