De-Socialization in a United Germany

Abstract

A s a result of the defeat of Hitler's Germany in Word War 11, there were 10 million refugees living on a significantly reduced German territory; 40 percent of the population was bombed-out (the population of Cologne, for instance, had declined from 750,000 to 32,000) and 60 percent was undernourished.' In those territories occupied by the Western Allies, initially the economic system inherited from the Nazi regime-a command-wareconomy-was retained. Almost all consumer goods were rationed, all-around price and wage controls remained in effect, and imports and exports were strictly regulared by the military administration. Black markets and barter trade were ubiquitous. Due to general price maxima and an expansionary supply of paper Reichs marks, no goods were to be found and money was largely u ~ e l e s s . ~ alack-market prices experienced a highly inflationary development and substitute currencies like coffee, cigarettes, and butter emerged. German output in 1946 was less than one-third of what it had been in 1938. Chaos and desperation were the mark of the day. In respone to the beginning Cold War between the Allies, in particular the United States and the Soviet Union, the Western