Germany, 1945-55

II - Life in Post-War Germany

Rebuilding West Germany  -  Life in West Germany  -  Rebuilding East Germany  -  Life in East Germany

Rebuilding West Germany, 1945-55

1.  A Change of Policy

At first, the American ‘Morgenthau Plan’ (1944) suggested that Germany should be “so weakened that it cannot in the foreseeable future become an industrial area” and the Joint Chiefs of Staff directive 1067 (JCS 1067) directed the US forces of occupation to “take no steps looking toward the economic rehabilitation of Germany”. 

By contrast, entering a devastated Germany in July 1945, British Field-Marshall Montgomery had issued a directive to the British forces of occupation which:

“identified steps to be taken to reconstruct German economic and political life, address shortages of food, fuel and housing, improve transport facilities, re-open schools, permit freedom of assembly, licence political parties and prepare for future elections … a policy of Full Speed Ahead for German rehabilitation”. 

British Army engineers set about repairing the infrastructure destroyed by the war, allowing goods to be produced and distributed efficiently, fuelling economic growth. 

Then, in September 1946, US Secretary of State James Byrnes made his ‘Speech of Hope’ – a ‘Restatement Of Policy On Germany’, advocating economic reconstruction (although JCS 1067 was not formally rescinded until 1947, and the western Allies continued taking reparations in the form of industrial plant out of Germany until 1950). 

2.  A New Currency

   •  In 1948, therefore, the western Allies replaced the old worthless Reichsmark with a new Deutsche Mark.  This was crucial for stabilizing the economy.  It created business confidence in the western Germany economy, and encouraged investment.  Particularly, it ended the black market and reintroduced a functioning market economy. 

   •  Just how impactful this was is shown by the fact that money poured out of the Soviet zone (which did not introduce the new currency) forcing Stalin to implement the Berlin Blockade. 

3.  Aid

   a.   Americans had been sending CARE (Cooperative for American Remittances to Europe) packages to German families since 1946, including not only things like flour, sugar and lard, but pencils and candy bars. 

   b.   The US GARIOA (‘Government and Relief in Occupied Areas’) program delivered $1.62 billion of aid 1946-50 in such as food, fertiliser, seed etc.  “to prevent disease and unrest”. 

   c.   In 1948, the US government’s ‘Marshall Plan’ allocated mass-funding to prevent impoverished western European countries turning communist.  1949-52, West Germany received $1.5 billion from the ‘European Recovery Program’, more than half of it in industrial raw materials and industrial plant.  Even more importantly, ERP ‘counterpart funds’ were used to provide cheap loans for investment in energy, coal mining, iron &steel, railways and housing.  The ERP also included a Technical Assistance Program of exchange trips by German and American economic experts and scientists to share expertise. 

4.  Government policies

   •  Ludwig Erhard, economic director in the Bizone and later West Germany’s Economics Minister, promoted economic stability and free-market principles, removing price controls and production quotas, and focussing on economic growth over social welfare.  This allowed industries to operate more freely and spurred productivity and innovation. 

   •  The government introduced a compensation scheme for Germans who had lost financially in the war; many were business owners who used that compensation to set up new businesses. 

5.  International integration

   •  Confidence and stability – vital to economic investment – was promoted in August 1948 when the western Allies united their zones into ‘Trizonia’ … which in 1949 became the state of West Germany. 

   •  In 1951, West Germany joined the European Coal and Steel Community (ECSC), becoming a founder member of the European Economic Community in 1957 … building free trade and economic links with other European countries. 

6.  A skilled and motivated workforce

   a.   Surviving German businesses had become super-efficient during the war, and returning soldiers often had engineering skills. 

   b.   The West German economy benefited from 3 million of east German refugees, many of them younger, skilled workers. 

   c.   The Co-determination law of 1951 required large businesses to allow trade union officials to sit on their boards of directors, and from 1952 firms were required to set up Works Councils to keep workers informed about management plans; these rules created good industrial relations and prevented strikes. 

   d.   Many Germans were determined to rebuild their nation after the destruction of WWII, an attitude which contributed to high productivity and economic revival. 

7.  Success

By the 1950s, West Germany was experiencing an ‘economic miracle’ (Wirtschaftswunder).  The economy grew at 8% a year – faster than at any time in Germany’s history.  Industries like steel, chemicals, and car manufacturing (e.g. Volkswagen) flourished.  By 1955, industrial production exceeded pre-war levels. 

Going Deeper

The following links will help you widen your knowledge:

YouTube

Surviving and rebuilding after 1945 - Encyclopaedia Britannica

Ludwig Erhard and the German Economic Miracle

The Boom Years in West Germany - Photographer Jupp Darchinger

British troops building a bailey bridge in West Berlin, 1949.

Life in West Germany, 1945-55

1.  Standard of Living

   •  Food: In 1945, the Allies could barely feed the population; daily rations in the British Zone were 1000 calories a day.  However, by 1946, however, it had risen to 1,5000 kcal, and by 1950, when rationing ended, food shortages had ended, and dietary variety was improving. 

   •  Housing: Initially, there was no housing, and urban areas struggled with the influx of refugees; people lived in the rubble, and multiple families shared homes.  However, government initiatives, like the 1950 Housing Construction Law, led to large-scale housing projects, and prefabricated apartment blocks (Plattenbauten) became common. 

   •  Transport: Railways, roads, and bridges were rebuilt with Marshall Plan funding.  By 1955, trams and buses were functioning effectively in cities like Frankfurt and Hamburg. 

   •  Healthcare: Hospitals were repaired, and healthcare services improved as the economy recovered.  Epidemics like tuberculosis declined significantly. 

2.  Social and Cultural

   •  Freedom: Citizens enjoyed stable government with freedom of speech and press guaranteed by the constitution of the Federal Republic. 

   •  Inequalities: Although class divisions persisted, especially for the refugees, the overall rising prosperity papered over the gap. 

   •  Religion: West Germany maintained its Christian identity, and both Catholic and Protestant churches played a major role in rebuilding community life. 

   •  Leisure: Leisure activities expanded as economic conditions improved.  Football was popular, especially after the 1954 World Cup victory by the West German national football team.  Cinema, especially Heimatfilm (homeland film) films – which depicted rural life nostalgically – became popular. 

   •  Trauma and Guilt: The war left deep psychological scars, with many Germans grappling with guilt and shame over the actions of the Nazi regime; most Germans made a psychological effort simply to put it out of their minds altogether.  Many Germans, especially those who had not been directly involved in the war, saw themselves as victims. 

3.  Women

   •  The Trummerfrauen played a vital role in post-war reconstruction during the late 1940s, but this role diminished as the country recovered, and women were pushed back into domestic roles. 

   •  Although women continued working in traditionally ‘female’ professions, such as nursing, teaching, retail, and clerical work, the percentage of women in the workforce decreased as men returned to employment in greater numbers during the economic boom. 

   •  While the 1949 Basic Law guaranteed equality between men and women, women were expected to prioritize family and homemaking; West Germany's social welfare model was to provide the male breadwinner with enough money to keep his family, and to expect the ‘non-working’ mother to provide the necessary social services for family members. 

   •  The Civil Code of 1953 still allowed husbands significant control over their wives' employment and finances, highlighting ongoing legal inequalities. 

   •  The 1950 Kinderreiche-Familiengesetz (Law for Large Families) provided financial support to families with many children, reflecting the importance of population recovery. 

   •  Girls’ access to secondary and vocational education improved in the 1950s, but higher education remained less common for women, as societal pressures often encouraged them to leave school early and marry. 

   •  Single mothers and refugee women struggled financially without male breadwinners, often living in poor conditions and facing significant barriers to employment or education. 

4.  Youth

   •  Education:

     ◦  Schools had largely recovered from wartime destruction by the 1950s.  The focus was on providing universal access to education and reforming curricula to align with democratic values, erasing remnants of Nazi ideology. 

     ◦  Higher education opportunities expanded for both boys and girls, though class and gender disparities remained.  Many working-class children left school early to contribute to family incomes. 

     ◦  Youth unemployment decreased as the economy grew.  Vocational training programs became key to integrating young people into the workforce, especially in manufacturing and trade industries. 

   •  Leisure and Popular Culture:

     ◦  The economic recovery brought new leisure opportunities for young people.  Cinema, especially American films, and rock-and-roll music gained popularity, marking the influence of Western culture. 

     ◦  Traditional German cultural institutions, like youth choirs and sports clubs, were restarted. 

     ◦  Juvenile delinquency became a concern, attributed to the dislocations of war and the breakdown of traditional family structures during the immediate post-war period. 

   •  Political Awareness: Young people in West Germany grew up in a democratic society and there was generational tension as they questioned their parents’ roles during the Third Reich. 

A day's ration in 1946; the table-decoration was not edible.

Trummerfrauen clearing the rubble in West Berlin.

Rebuilding East Germany, 1945-55

1.  Economic Reconstruction Under Soviet Control

The Soviets sought to rebuild the economy through state ownership and centralized planning:

   •  Large industries were nationalized under the Volkseigene Betriebe (‘People's Enterprises’: VEB).  By 1950, over 75% of industrial output was from state-owned firms. 

   •  The Two-Year Plan (1949-1950) and Five-Year Plan (1951-1955) – which aimed to increase industrial output by 35%, focusing on sectors like energy and chemicals – set targets for rebuilding and growth.  They achieved modest growth at the expense of shortages of consumer goods. 

   •  Universities prioritized subjects like engineering and science, and schools emphasized technical skills … though the school-leaving qualification, the Abitur, also measured political loyalty. 

2.  Land Reform and Redistribution

The communist Bodenreform (‘land reform’) of 1945 nationalised all private properties larger than 100 hectares.  Large estates (Junker land) were confiscated, partly to punish individuals linked to the Nazi regime but also to eliminate the elite class.  Some 7,000 estates (totalling 2.5m hectares) were confiscated from the Junkers, and distributed to ½ million peasants and landless labourers. 

   •  The Bodenreform was extended to farms >20ha in 1949 and, after 1952, the government began to ‘collectivize’ farming by setting up Agricultural Production Cooperatives; as it had in Russia in the 1930s, this caused disruption and resistance, so production fell far short of targets. 

3.  Development of Socialist Urban Planning

   •  East Berlin became a symbol of socialist rebuilding, exemplified by the Stalinallee project (begun 1952), featuring grand, Stalinist-style apartment blocks for workers. 

   •  Urban planning prioritized functional housing and public amenities, though resources were limited due to reparations and the focus on heavy industry. 

   •  Building in the countryside fell far short of targets; of 37,000 new houses planned by the end of 1948, only 748 were completed. 

HOWEVER: two factors severely held back recovery in East Germany:

4.  Removal and Sovietization of Industry

Economic revival was greatly hampered as the Soviets confiscated industrial infrastructure as reparations:

   •  By 1946, c.1,800 industrial plants had been transported to the USSR.  This was at the same time a punishment for Nazi crimes, and to replace Soviet industry destroyed in the war … but also to destroy capitalism in East Germany. 

   •  As a response to the American ‘Marshall Plan’ (which poured money into the western economies), Stalin set up Comecon in 1949 to coordinate the economies of eastern Europe.  However, the Soviet bloc did not have the money to fund anything nearly as ambitious as the Marshall Plan, and Comecon – which coordinated Soviet bloc economies for the benefit of the USSR – actually made matters worse. 

5.  Migration to the West

   •  Between 1945 and 1952, millions fled the Soviet Zone to West Germany, seeking better living conditions and freedom. 

   •  The loss of skilled workers and professionals created labour shortages and further strained reconstruction efforts. 

Life in East Germany, 1945-55

1.  Standard of Living

Severe shortages persisted due to war destruction, Soviet reparations, and the prioritization of heavy industry; living standards lagged way behind West Germany:

   •  Basic necessities, including food, clothing, and consumer goods, were rationed, and while rationing was officially abolished in 1950, food shortages persisted.  Diets were monotonous and unnutritious, with limited access to fresh produce or consumer goods.  Black markets flourished, with goods bartered or traded for hard currency. 

   •  Housing: Bombing during WWII had destroyed 40% of housing in urban areas.  Rebuilding was slow, and many lived in overcrowded, poorly maintained apartments or temporary shelters.  Construction projects like the ‘Stalinallee’ were far from meeting demand. 

   •  Transport networks, heavily damaged during the war, were only slowly rebuilt.  Railways prioritized goods transport, leaving passenger services overcrowded and unreliable.  This was especially limiting because few people owned a car. 

   •  Healthcare:: The GDR aimed to provide universal healthcare, but shortages of medical equipment and medicines were common.  However, efforts were made to rebuild hospitals and train medical staff. 

   •  Unemployment: Initially, there was a labour shortage due to war deaths and the large number of men in POW camps; even when the POWs returned, state employment policies and industrial expansion kept demand for labour high.  By 1950, employment in state-owned enterprises (VEBs) ensured job security, albeit often with low wages and limited worker rights. 

2.  Social and Cultural

   •  Oppression & Propaganda: Political control was strict under the Socialist Unity Party (SED), with the terrifying Stasi ('State Security' – the secret police) formed in 1950 to monitor dissent; freedom of speech and movement were curtailed.  In 1947 the anti-fascist women’s committees were dissolved, and their work put under the control of the state organisation: the Democratic Women’s Union. 

   •  Social Inequalities: divisions grew between SED elites, factory workers, and rural populations.  High-ranking party members often enjoyed better access to housing, food, and education. 

   •  Culture and Leisure: There was an official paranoia which needed to ensure that all leisure time was appropriate to socialism.  State-sponsored cultural activities like theatre, music, and literature promoted socialist values and discouraged ‘bourgeois’ or Western influences … like dancing, jazz, and Western films.  Non-productive events such as flower festivals and beer-fests were discouraged.  Instead, the State encouraged hobby fairs (such as stamp-collecting) and clubs (such as local history societies) which it then sought to control: so that, eg, amateur theatre groups were put under the Association of German People's Theatres, ramblers were assigned to the Sports League etc. 

   •  Religion and the Church: The Soviet Zone initially saw the Church as a threat, but realised that it was too embedded to do anything about.  Nobody was put to death for their religion, and just 15 Catholic priests were arrested for political reasons 1945-61 … and none after 1961.  However, religious groups, particularly Protestants, resisted indoctrination and were closely monitored by the state. 

3.  Women

The GDR’s attitude to women was conflicted:

   •  Women played a critical role in rebuilding urban areas, often working in the voluntary Trummerfrauen ('rubble women') teams that cleared the debris of destruction in 1945. 

   •  Especially until the POWs returned home, due to war deaths, women were the heads of household and almost the only workforce available, particularly in heavy industry and education. 

   •  In 1946 the government guaranteed “equal pay for equal work” and banned gender discrimination in education.  The 1949 GDR constitution granted formal equality, and access to childcare and maternity leave improved. 

HOWEVER, traditional domestic roles persisted, especially after the POWs returned. 

   •  Women continued to work, but this often burdened them with dual responsibilities, and pay disparities and discrimination persisted.  To their fury, they were sacked from jobs requiring the carrying of heavy loads, exposure to chemicals or risk of accident. 

4.  Youth

   •  Education reforms and youth organizations like the Free German Youth (FDJ) indoctrinated children with socialist values and limited contact with Western media and ideas. 

   •  Some youths rebelled against state control, inspired by western influences such as rock ’n’ roll and fashion.  The ‘obsession’ with dances was so great that the government eventually gave up trying to prevent them, and organised official dances, with interludes for socialist acts such as accordion groups and short theatre presentations!

YouTube

A Day in Dresden in 1946

5.  Heimat

Historians Celia Applegate (1990) and Mary Fulbrook (2008) found that – despite the oppression and economic failures – most people in East Germany seem to have been content.  Applegate put this down to a deep-seated love of the Heimat – the homeland. 

   •  Realising this, the State encouraged Heimat events, and argued that it was a socialist concept based on shared class. 

   •  One Young Pioneers leader argued that outdoors expeditions were vital to give young people a love of the Heimat which would help them understand the need to defend it against western warmongers. 

   •  In 1955, Heimatkunde (‘Homeland Studies’) was made a compulsory school subject.

6.  Failure

Two facts, however, suggest that all was not well in the GDR:

   •  Migration: Between 1945 and 1952, at least 3 million people fled the Soviet Zone to West Germany, seeking better living conditions and freedom. 

   •  The 1953 Uprising: In 1953, Stalin’s death coincided with shortages of food and the introduction of compulsory military service in the GDR.  The result was a violent uprising which involved about 1 million people in towns across East Germany.  It was brutally suppressed with the help of six divisions (20,000 troops) of the Soviet Army: 10,000 people were arrested, more than 1,000 served long prison sentences and at least 32 people were executed.  The historian Gary Bruce (2003) argued that this near-collapse of the Communist regime in East Germany ensured that the country in the future would be "heavily dependent on Stasi oppression for social control".