Lecture 16 Jan 29 08 Post-War Germany

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Lecture #16
Slide #1: Post War Germany
Divide between East and West Germany
Preventing Nazism: different approaches in East and West
East: matter of capitalism
West: 1 law 2 politics 3 political economy
At the end of WW2, germany is divided into four occupying countries, Britain, france, Russia, U.S
Within the eastern germany, the capital of germany is berlin, which is also divided into 4 zones.
The allies other than Russia have right to move troops and supplies through certain corridors to zones
in Berlin.
The eastern germany became communist and increasing number of refugees to move into west
germany, by 1961, eastern germany was losing too much people, so they closed the border (the
Berlin Wall)
1 how did we get into Nazism?
2 what can we do to prevent from happening again?
Nazism is the product of capitalism. In order prevent Nazism, get rid of capitalism. Nationalize industry
and property. The western allies belief of Nazism, prevent people from becoming Nazis: Combination
of educational system and institutional structures, Laws to prevent Nazism.
The concept of ¯Militant Democracy°: democrats should not sit around and let the enemies to destroy
the freedom of democracy. 1 make it illegal for the nazi party to organize. 2 violates the freedom of
speech, assembly.
West Germany put in a set of institutional constraints, constitutional court, adopted independent
central bank. Hyperinflation led to the nazi party.
SLIDE #2: Varieties of Capitalism
Liberal Market Economies vs Coordinated Market Economies
Markets are institutions and require institutional support
Competition vs Collaboration, hierarchies vs networks
National differences in labour market regulation: role of unions and employer associations, hiring,
firing, unemployment insurance, employment security, health care.
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