Freddy, a Viennese Jew who emigrated to New York after Hitler's invasion, and Adler, a left-wing intellectual originally from Berlin, return to Austria in 1944 as soldiers in the U.S. Army. Freddy falls in love with the daughter of a Nazi, and Adler attempts to go over to the Communist Zone. But with the advent of the Cold War and continuing anti-semitism, the idealism of both characters is shattered as they find themselves surrounded by cynicism, opportunism, and universal self-deception.

One of the main theses of the Marienthal study was that prolonged unemployment leads to a state of apathy in which the victims do not utilize any longer even the few opportunities left to them. The vicious cycle between reduced opportunities and reduced level of aspiration has remained the focus of all subsequent discussions.