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# Das geteilte Deutschland This document discusses the economic systems of West Germany (BRD) and East Germany (DDR) during the division of Germany after World War II. ## West Germany (BRD) - Social Market Economy **Concept:** This economic system aims to combine the benefits of a free market eco...

# Das geteilte Deutschland This document discusses the economic systems of West Germany (BRD) and East Germany (DDR) during the division of Germany after World War II. ## West Germany (BRD) - Social Market Economy **Concept:** This economic system aims to combine the benefits of a free market economy with social policies to mitigate potential risks like social inequality. **Advantages:** * Stable pensions and unemployment benefits (guaranteed by the constitution) * Free market principles drive innovation and progress * Freedom of expression and private enterprise **Disadvantages:** * Potential for unemployment and fluctuating prices * Possible inequality from free market dynamics **Conditions:** * Integration into Western alliances * Strong trade partnerships * Financial aid from the US (Marshall Plan) * Availability of lower labor costs from refugees and guest workers ## East Germany (DDR) - Planned Economy **Concept:** The economy is centrally planned, meaning the state dictates production quotas and distribution of resources. **Advantages:** * Relatively low unemployment * State-guaranteed basic needs **Disadvantages:** * Lack of innovation from lack of competitive pressure * Shortages of consumer goods * Limited personal freedoms (less entrepreneurial possibilities) * Inefficiencies due to lack of market-based adjustment mechanisms **Conditions:** * Dependence on the Soviet Union * Limited access to resources * Harsh reparation payments from World War II * Technological and industrial lag relative to West Germany, hindering development and competitiveness **Overall:** The comparison highlights the different approaches of the two German states to economic development and the varying degrees of success in achieving societal goals. A significant point is the influence of the Cold War and the two opposing ideologies.