|
KMID : 1124020190350010027
|
|
Korean Social Security Studies
2019 Volume.35 No. 1 p.27 ~ p.52
|
|
|
Ideology and Reality of Social Policy and Collapse of East Germany
|
|
Kim Sang-Ho
|
|
|
Abstract
|
|
|
|
In this paper, the main characteristics of social policy in East Germany were investigated by focusing on how chief-secretaries, Walter Ulbricht and Erich Honecker, understood and took advantage of social policy in ruling East Germany. They expected that enlargement of social policy will bring social integration function to stabilize the political system and productivity function to contribute to economic growth by boosting labor morale, which did not happen. Rather, massive transfer payments which were not directly related to labor outcomes caused economic inefficiency through bias in resource allocation and intensified financial burden. Social policy in the era of Honecker overburdened the economy of East Germany and encroached the economic growth potential. Although social policy contributed to stabilizing the political system, it was carried out excessively which in turn became one of the main reasons for the collapse of East Germany. Public pension lessened poverty of elderlies due to the comprehensive range of application and the characteristic of strong income redistribution. However, pensioner had to live on subsidized necessaries owing to low pension. Though subsidy policy supported lives of East German people through price stabilization, it failed to stimulate labor moral and caused side effects, which led national finance into bankruptcy. Housing policy stabilized residence. Nevertheless, low rental fee which was subsidized became one of the main causes for financial burden of the government.
|
|
|
KEYWORD
|
|
|
social policy in East Germany, pension policy, subsidy policy, housing policy, collapse of East Germany
|
|
|
FullTexts / Linksout information
|
|
|
|
|
|
Listed journal information
|
|
|
|