Abstract

Germany's Price Goes Up

This article focuses on the economic conditions of Germany. West Germany has a great deal of unemployment and is burdened with the refugees from the east. East Germany, far from being troubled with unemployment, needs workers badly. But West Germany is benefiting from a great influx of foreign private capital. Copious funds are being made available, partly because no controls have been imposed on the economy and partly because Western policy favors Germany above other European countries. The product of West German industry, moreover, is in great demand for Atlantic defense. East Germany has the advantage of lower prices; many West Germans go to the Soviet-controlled eastern zone to buy food. The difference in the cost of living in the two zones has slowed the stream of refugees flowing westward.