Berlin Wall: A Symbol of Economic Divide

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Berlin Wall: Free Market Economy vs Command Economy Once described by Horst Köhler, the former president of Germany, as “a edifice of fear”, the Berlin Wall divided East and West Berlin. Commonly referred to as the “Antifascistischer Schutzwall, or antifascist bulwark”, the Berlin Wall separated communist Soviet Union-controlled East Berlin from West Berlin which was controlled by the Allies (History.com). Construction of the wall began in August of 1961 when barbed wire fencing and concrete walls were installed separating the two territories. During the construction process East Berlin strategically built the wall just inside their territory (“Berlin Wall”). Approximately, sixty-six miles of concrete formed the main dividing line when it …show more content…

One advantage of a free market economy is that a free market “ensures the most desired goods and services are produced” (Amadeo). Furthermore, goods and services are produced efficiently because consumers determine demand as opposed to the government (Amadeo). Another advantage of the free market economy is the power to choose for the consumer. Without government limiting the number of sellers and or quantity of goods and services, buyers in a free market economy have the power to buy without fear of over regulation by the government (Amadeo). One negative aspect of the free market is there are “no mechanisms to care for those who are at an inherent competitive disadvantage” …show more content…

Countries such as the Soviet Union, North Korea, and Cuba possess command economies (“Examples of Command Economies”). Command economies feature no competition because the government controls and regulates all business ("Command Economy”). Furthermore, command economies focus on maximizing “social welfare” ("Command Economy”). Another key feature of a command economy is the “central plan” which “sets the priorities for the production of all goods and services” (Amadeo).
There are both advantages and disadvantages to a command economy. One advantage to a command economy is they “mobilize economic resources quickly, powerfully, and on a large scale” (Amadeo). Furthermore, command economies are powerful enough to completely change society in order to “conform to the government's vision” (Amadeo). However, there are many disadvantages to a command economy including: a lack of efficiency and a lack of competition

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