ABSTRACT
This chapter explores the history of the transition from a planned to a market economy in Eastern Germany after 1989, 1990, with a focus on the material and mental impacts of capitalism on a post-socialist society. Using recent debates about the rise of anti-liberal, right-wing populism in the East as a starting point, the text follows the trajectory of economic reunification. It begins by tracing the beginnings of reunification in 1989, 1990, which were marked by widespread euphoria and optimism about a second “economic miracle” following the fall of the Berlin Wall. It then progresses to the disappointment and frustration experienced by many within East German society throughout the 1990s, as, following an accelerated privatization campaign, industry closures, and mass unemployment ensued. Finally, it discusses the long-term effects on (East) German memory culture up to the present day, where the “takeover” of the East by the West remains a widely debated political topic and a significant claim made by illiberal populists. The text illustrates how, shortly after 1989, 1990, many East Germans perceived the once longed-for Western capitalism as a highly competitive and “cold” economic, social, and cultural order, in contrast to the supposedly “warmer” period of real socialism.
