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Germany is really a special case: Around 1990 the first world western part merged with the second world eastern part, while giving all citizens of the eastern part around 2/3rd (I think, correct me if I'm wrong) of the western level of social benefits.

It's a little like if the U.S. would merge with Mexico and give all Mexicans huge social benefits.

So I would be careful with an analysis why the economy has improved exactly. After all the regulated economy had worked fine in the West until 1990.




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