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http://www.nber.org/digest/apr06/w11700.html
The Effects of Communism on Popular Preferences

"After being reunited with West Germany, most East Germans have retained a 
decidedly Communist view of what the government should do in terms of 
providing a social safety net and redistributing wealth from rich to poor."

While the common view in the West is that most Europeans who lived under 
Communism were happy to trade state-run economies for free-market 
capitalism, it turns out that their Marxist indoctrination may have more 
staying power than previously thought. In Goodbye Lenin (or Not?): The 
Effects of Communism on People's Preference 
(http://papers.nber.org/papers/w11700), co-authors Alberto Alesina and 
Nicola Fuchs-Schündeln find that after being reunited with West Germany, 
most East Germans have retained a decidedly Communist view of what the 
government should do in terms of providing a social safety net and 
redistributing wealth from rich to poor. The authors conclude that the 
exposure to Communism has made East Germans "much more pro-state than West 
Germans."

"This effect could arise due to indoctrination (such as teaching the 
virtues of Communism in the schools) or simply due to becoming used to an 
intrusive public sector," they write. "A second, indirect effect of 
Communism is that by making former East Germany poorer than West Germany, 
it has made the former more dependent on redistribution and therefore more 
favorable to it."

Alesina and Fuchs-Schündeln see Germany as an ideal laboratory for studying 
the lingering influence of Communism on a society because, prior to its 
partition in 1945, East and West Germans were, culturally and economically, 
almost indistinguishable. Therefore, one can attribute differences in 
contemporary attitudes to the different systems they lived under until 
unification in 1990.

The authors observe that after 45 years of living under Communism, one 
could think of "two possible" outcomes. Given the contrast between their 
stagnation and the West's prosperity, East Germans could have a strong 
reaction against state intervention and eagerly embrace free-markets. 
Alternatively, it could be that more than four decades of "heavy state 
intervention and indoctrination instill in people the view that the state 
is essential to individual well being."

Alesina and Fuchs-Schündeln examined comprehensive, contemporary surveys of 
East and West German residents regarding their views on who should be most 
responsible for ensuring individual financial security, the state or the 
private sector. What they discovered is that most East Germans continue to 
hold the Communist view of the state as the central actor.

"In fact, we find that the effects of Communism are large and long 
lasting," they write. "It will take one to two generations for former East 
and West Germans to look alike in terms of preferences and attitudes about 
fundamental questions regarding the role of the government in society." In 
that sense, they view West Germany as having received a major "political 
shock" when it was re-united with East Germany since, almost overnight, the 
portion of the German population favoring state intervention grew 
significantly.

And, the citizens' preferences appear to go beyond self-serving beliefs. 
For example, Alesina and Fuchs-Schündeln find that some of the difference 
in opinions -- about a third -- "can be explained by the fact that the East 
became poorer during Communism and is now a net beneficiary of (state 
directed) redistribution within Germany, rather than to an effect of 
Communism on preferences." But, they also find that East Germans are simply 
much more likely than West Germans to conclude that, "social conditions, 
rather than individual effort and initiative, determine individual
fortunes."

"This belief is of course a basic tenet of Communist ideology," they write. 
But Alesina and Fuchs-Schündeln find that while Communist attitudes may 
still linger, they are waning and eventually -- though it may take 20 or 40 
years -- the two sides will converge. For example, between 1998 and 2002, 
the share of East German votes captured by Germany's most leftist party, 
the PDS, shrunk substantially, "indicating a movement away from the 
Communist-leaning left toward the center of the political spectrum.

-- Matthew Davis





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