Capitalism ist Kaput

One unfortunate feature of Germany, and especially the old East Germany, is persistently high unemployment. This was and is particularly sad in East Germany. When Communism collapsed, so did many of the old, inefficient and noncompetitive state owned enterprises, throwing their workers into unemployment.

Now, Germany is not the US, and losing your job does not mean that you lose health care for yourself or your family and the state does provide considerable benefits. But, however you look at it, losing your job is still going to be devastating and moreover it might be quite difficult to find another job, especially if your skills were based on obsolete technology or machinery.

Arguably however, there was no real way to move from the inefficient and unsustainable Communist style command economy to a more capitalistic system without a lot of state enterprises closing. The factories were too old, based on obsolete technology and simply depended upon state subsidies to remain operational. It all sounds very logical and sensible, but the hardship and pain this caused people and families as they had to deal with these changes was very real.

Many former Communist countries, from China through to Romania have had to deal with these changes in the last several decades. East Germany though had the unique good luck to have been dissolved entirely and integrated into its Western twin. West Germany invested heavily and funded the transformation and modernizations. Of all the former Communist countries, the old East Germany has probably had the easiest time adjusting to the new political and economic structures.

Which is perhaps why I find it so funny, and ironic, that one finds the odd sign around Rostock saying "Capitalism ist Kaput". Admittedly, this was spray painted on the outside of what was probably either some sort of anarchist share house or squat, but really!