The economy of scarcity, or what was available to buy in the GDR
What could you buy with your money in the GDR? At first glance, the answer is clear: food, clothing, household goods, consumer electronics – the range of goods was quite diverse. But even this seemingly simple question leads straight to the contradictions of the centrally controlled socialist economy. This is precisely where the new exhibition area »Economy of Scarcity« in the DDR Museum comes in, stretching out under the green-lit sign of a Konsum sales outlet. With numerous exhibits, it shows how the planned economy shaped people's lives.
An important insight is that although there were many consumer goods in the GDR, they were not always available to everyone. This is particularly evident in the case of electronic goods, as can be seen in the introductory installation. Radios, televisions and cassette recorders were often expensive and – especially if they were intended for export – hardly available domestically. The state-controlled production of consumer goods thus led structurally to an economy of scarcity.
Contradictions of the planned economy
On the one hand, the state provided a high level of social security. Rents were low, basic foodstuffs were heavily subsidised, and holidays on the Baltic Sea were affordable for many. Prices were set by the state and remained stable for decades.
On the other hand, despite the government's promise of welfare, there were repeated shortages, especially in the area of consumer goods. Very few items were available everywhere at all times, and regional and seasonal differences were clearly noticeable. East Berlin, as the capital, was given preferential treatment in terms of supplies, while small towns and rural areas often lost out. In addition, many high-quality products were destined for export in order to generate urgently needed foreign currency – and were therefore hardly sold domestically.
Although supplies were generally guaranteed in most areas of life, this did not follow the rules of supply and demand in a free market. This is particularly evident in the example of housing. Living space, which remained scarce until the end, was allocated by the state, with money playing only a minor role. In other areas, too, political or economic considerations tended to determine availability and distribution. The digital treadmill, for example, shows step by step how to get a car in the GDR and when jeans became available in the GDR.
Money and other means of payment in the GDR
The official currency was the East German mark, a purely domestic currency that could not be imported or exported. The banknotes reflected the socialist self-image: Marx and Engels were at the top, with Clara Zetkin representing at least one woman. Many people considered the small notes and the lightweight aluminium coins – popularly known as »aluchips« – to be of little value. One exception was the 20-pfennig brass coin, which was needed for payphones.
The Deutschmark remained the currency of choice. Until 1974, it was illegal to possess Deutschmarks, but illegal trade flourished nonetheless. On the black market, »blue tiles« – 100-DM notes – secretly changed hands. Western currency served as a stable shadow currency that could be used to fulfil many consumer desires. From 1979 onwards, this had to be officially exchanged for Forumschecks at a rate of 1:1. The state thus skimmed off foreign currency, while the population was able to buy coveted Western goods in the Intershops with the colourful notes.
The development of incomes was also paradoxical. The wage packets illustrate different gross salaries in the 1970s and 1980s based on real professions. Despite a stagnating economy, average wages rose while prices remained unchanged. The result was a »money surplus«: many people had money, but often found nothing they could or wanted to spend it on. In this situation, privileges and relationships became the real currencies of everyday life.
Daily shopping in the GDR
The display wall with everyday goods ultimately illustrates how heavily subsidised basic goods were and how cheaply some of them were sold. At the same time, high prices, for example for coffee, show what was considered a luxury or was expensive due to scarcity. White placeholders also refer to typical shortage goods. The digitally processed shortage diary, which Ingeborg Lüdicke from Saxony-Anhalt kept for years, illustrates this experience impressively.
Daily shopping was often a challenge, and a Dederon shopping bag was part of the basic equipment. It also helped to be in the right place at the right time. Queues of people in front of shops were a common sight on the streets; anyone who saw a queue joined it – often without knowing what was available. At the same time, Delikat and Exquisit shops undermined the ideal of equal distribution. Here, sought-after goods were available, but at significantly higher prices. This was a means for the state to skim off excess purchasing power.
When new goods arrived, not everything went on sale immediately. »Bückware« disappeared under the counter and was reserved for good customers or acquaintances. »You need connections« was a phrase often heard. Networks of mutual favours replaced missing market mechanisms, whether for spare parts, services or consumer goods. The often-invoked solidarity among people was not least a result of the economy of scarcity.
Homemade or DIY brand
True to the motto »necessity is the mother of invention«, everyday shortages in the GDR not only caused frustration, but also fostered creativity. Improvisation was one of the most important everyday skills. Anything that couldn't be bought was built by hand: a well-known example was the lawnmower with a washing machine motor. »Homemade« stood for the ingenuity and pragmatism needed to cope with everyday life in the GDR.
Our object database contains all kinds of homemade everyday items as well as guides such as books and magazines on the subject of DIY.
