The Birth of German Democratic Republic

Soviet dictator Stalin died in March 1953. In large portions of the East German population, particularly among workers suffering under the high production quotas set by the SED, Stalin's death gave rise to hopes for an improvement in living conditions and for an easing of political terror. In an attempt to stave off increasing unrest among the population as living standards were worsening and production quotas were being raised, the East German leadership, headed by General Secretary Walter Ulbricht, announced new economic policies that would end price hikes and increase the availability of consumer goods. Ulbricht refused, however, to lower production goals for industry and construction, which had been increased by 10 percent on May 28, 1953.