Page 8- New Economic Woes
Another result of the disintegration of the GDR was the loss of benefits like
guaranteed employment, childcare, housing, and health care services. The effects
of this loss are acutely felt by easterners. The unemployment rate is16.9% in
East Germany, compared with 7.5% in West Germany. In socialist times, companies
would hire as many workers as they could to fulfill their production quotas.
However, after unification there was no reason to have as many workers which
resulted in companies firing from 70-90% of their workers. Both countries had
their own currency, which created more problems after unification because eastern
money was worth less than western money. Upon reunification a new currency was
created for Germany.
Top Left : German
unemployment line. Right: Former East German currency. Bottom Left:
Former West German currency.
However, it is being replaced by the euro. Also, westerners resent the solidarity
levy all Germans had to pay after reunification because they think that it only
benefits the East.
