Good article. They could also do the similar experiment by looking at North and South Korea.
But I can attest to this article’s veracity. I attended college in Germany for a year from 1979-1980. And I traveled in East Germany during that time. Crossing Checkpoint Charlie from West Berlin into East Berlin was like crossing into a 3rd world country. That was the best that Socialism could offer?
Following the devastation of World War II, Germany was split into two parts. The German Federal Republic, or West Germany, was rebuilt in the image of the Western allies and a capitalist legal-political-economic system. By contrast, the German Democratic Republic, or East Germany, was reconstructed using the socialist/communist principles championed by the Soviet Union. The Experiment pitted the market economy of the West against the command economy of the East.
On the Western side, considering what’s being taught in our schools, one might expect that “greedy capitalism” would create a state where a few people became the rich elite, while the vast majority were left as deprived masses. Socialism, by contrast, promised East Germany the best that life had to offer, through rights guaranteed by the state, including “human rights” to employment and living wages, time for rest and leisure, health care and elder care, and guaranteed housing, education and cultural programs.
So the Petri dishes were set, and The Experiment began. In 1990, after just 45 years, The Experiment abruptly and surprisingly ended – with reunification back into a single country. How did it work out?
In West Germany, capitalism rebuilt the devastated country into a political and economic power in Europe, rivaled only by its former enemy, Great Britain. Instead of creating a rich 1% and a poor 99%, West Germans thrived: Average West Germans were considerably wealthier than their Eastern counterparts. The country developed economically, and its people enjoyed lives with all the pleasures that wealth, modern technologies and quality free time could provide.
By contrast, East Germany’s socialist policies created a state that fell woefully behind. Its people were much poorer; property ownership was virtually nonexistent amid a collectivist regime; food and material goods were scarce and expensive, available mostly to Communist Party elites; spies were everywhere, and people were summarily arrested and jailed; the state pretended to pay its workers, and they pretended to work. A wall of concrete, barbed wire and guard towers was built to separate the two halves of Berlin – and keep disgruntled Eastern citizens from defecting to the West. Many who tried to leave were shot.
By the time of reunification, productivity in East Germany was
barely 70% of that in West Germany. The West boasted large, vibrant industries and other highly productive sectors, while dirty antiquated factories and outmoded farming methods dominated the East. Even staples like butter, eggs and chicken – abundant and affordable in West Germany – were twice as expensive in the eastern “workers’ paradise.”