Skip to content

Now The Economist Respects Germany's Economic Model as well

As a follow-up to R.E.S.P.E.C.T. for Germany's Economic Model I would like to recommend The Economist's latest issue:
Europe is widely regarded as a place with a sclerotic economy burdened by high labour costs. But our special report on Germany this week suggests that, in the continent's biggest economy at least, that's not the case. Germany has succeeded in ruthlessly holding down labour costs over the past decade, which has helped it maintain its unparalleled success as an exporter. Germany is rightly proud of this; but for the neighbours, it is not necessarily good news.


No Trackbacks


Display comments as Linear | Threaded

Marie Claude on :

"but for the neighbours, it is not necessarily good news" though not sure that the very German labor force appreciates them as you do, they have been charged for what your export enterprises have gained : 10% less social charges, plus the salaries have been blocated. Since you're economy relies on exportations, but that your inner marcket is defaulting, me thinks, you'll have to bail out some of your enterprises and stores soon, and that the unemployment will show off Germany wants to punish the euro offenders OK, it's from a Brit ! and we aren't in rest for the compliments too How Christine Lagarde, fought for strict banking regs that sustained France while Europe crumbled.

John in Michigan, US on :

Germany is the Eurozone success story and deserves credit. Other countries such as France seem to be doing OK also. But in the US we have individual states, such as Texas, that are doing OK also. At the moment, however, we have nothing like the Greek crisis, with riots, looting, strikes, etc. In spite of our massive debt and future entitlements crisis, the European entitlements crisis will come sooner an be harder to solve, due to demographics, modest potential for economic growth, and other reasons. You have to compare all of Europe to the US, not just the favorable parts.

Marie Claude on :

By 2014, International Monetary Fund official John Lipsky remarked March 21, the debt-to-gross domestic product (GDP) ratio of the Group of Seven countries will reach 100%, and the governments of the industrial world will carry the highest debt burden since shortly after the end of World War II.

Add Comment

E-Mail addresses will not be displayed and will only be used for E-Mail notifications.

To prevent automated Bots from commentspamming, please enter the string you see in the image below in the appropriate input box. Your comment will only be submitted if the strings match. Please ensure that your browser supports and accepts cookies, or your comment cannot be verified correctly.

Form options