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It was called "real socialism" (or "Real existierender Sozialismus" in German), because the party elite was fully aware that the promises of a socialist utopia collided hard with reality in East Germany (and the rest of the Eastern Europe socialist countries). So the propanda idea was basically to hold the carrot dangling in front of the people of achieving "actual socialism" as a first step, and then at some later point (maybe a few hundred years in the future) "communism" (as envisioned by Marx/Engels) - "just work harder and then it will get better, you'll see Genosse!".

Of course nobody in their right mind believed such bullshit (not even most party members).

Private companies were shut down a lot earlier than the 70's, more like the 50s and early 60s. Later this was relaxed again. It was actually possible again in the 80s to run a small privately owned business (my parents were both self-employed). A privately owned company in East Germany still doesn't mean that there's any competition though, or ability to be better off than a worker in a state-owned company. The entire economic enviornment just wasn't compatibly with the idea of running a business that's not controlled by the state.

Still, compared to some of the poorer Eastern European countries, East German people were somewhat well off. Maybe on a level like Portugal or Greece, but of course piss-poor when compared to West Germany. And in any case much worse when it comes to personal freedom of course (which was a much more critical problem than the economic problems).

Also, all those things don't change the fact that East German engineers sometimes came up with brilliant solutions despite the less than ideal conditions.




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