The economy in the 1980s


	The economy in the 1980s
	Advantages Food was available Goods were taken from the domestic market to boost exports The Five-Year Plan of 1986-1990 attempted to address these issues Its guidelines aimed at the construction and modernisation of homes, and a focus on new technologies to compete with the West	Disadvantages There was overstaffing, citizens seen as politically unreliable may not have had employment opportunities of their choice and a lack of housing meant that people lived in overcrowded conditions Queues for food were often long By the mid-1980s the GDR's economy was facing slower industrial growth, which resulted in a falling income for the government The government reduced spending, sold political prisoners to the FRG and got loans from the FRG Increased shortages of consumer items People of the GDR were unhappy as they had savings but nothing to spend their money on The plan did little to improve the quality of item produced and the country failed to close the gap with the progressing economy of West Germany Economy also hampered by expenditure on defence, paying for the Berlin Wall
	Evaluation Overall, a failure.

Food was available
Goods were taken from the domestic market to boost exports
The Five-Year Plan of 1986-1990 attempted to address these issues
Its guidelines aimed at the construction and modernisation of homes, and a focus on new technologies to compete with the West

There was overstaffing, citizens seen as politically unreliable may not have had employment opportunities of their choice and a lack of housing meant that people lived in overcrowded conditions
Queues for food were often long
By the mid-1980s the GDR's economy was facing slower industrial growth, which resulted in a falling income for the government
The government reduced spending, sold political prisoners to the FRG and got loans from the FRG
Increased shortages of consumer items
People of the GDR were unhappy as they had savings but nothing to spend their money on
The plan did little to improve the quality of item produced and the country failed to close the gap with the progressing economy of West Germany
Economy also hampered by expenditure on defence, paying for the Berlin Wall

Overall, a failure.

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