Posted by Joerg Wolf in
International Economics on Tuesday, July 25. 2006
Bruce Stokes, journalism fellow with the German Marshall Fund of the United States, has written a feature article about Germany's economy for the National Review. He considers economic growth in Germany to be important for the United States:
Washington knows that Americans also need a successful German economy. As the largest European economy, Germany can be, and has been, the economic engine that leads all of Europe into faster growth rates and thus bolsters U.S. exports. Except for Germany's disagreement with the United States on Iraq, Berlin has been a reliable partner in Washington's European and global foreign-policy initiatives. And, looking forward, "Germany is the only dependable U.S. partner for the next 15 years," asserted Deutsche Bank's Walter. But the growing divergence in economic performance between Europe and the United States is rapidly eroding the economic conditions that have nurtured trans-Atlantic political relations and fostered U.S.-European joint leadership of the world economy.
The American Institute of Contemporary German Studies provides Bruce Stokes' in-depth article about many problems of Germany's economy as a pdf file. While Stokes argues that Germany's labor and economic reforms, although significant, have so far delivered only meager returns and that more needs to be done to remedy this situation, the Energy Banker Jérôme Guillet (European Tribune) is skeptical whether more of the same sort of reforms will help. The historian Tony Judt argues in The Globalist:
If anything, the rush of many contemporary commentators and public figures, particularly in the United States, to ignore the political origins of the welfare state reflects poorly on their understanding of Europe's difficult past. (...) The liberal welfare states of Europe were not built as a vision of a utopian future. They were built [after WWII] as a barrier to Europe's 20th century -- as it had just been experienced. In this context, bear in mind that most of the men who built the welfare states in Europe were not young social democrats. Most of the people actually implementing this program after 1945 in Western Europe were Christian Democrats — or liberals rather than socialists of any kind.
Is the US system better? After a decrease of poverty in the late 90s, "the number of Americans living in poverty has risen each year Bush has been president, increasing to 37 million in 2004 from 31.6 million in 2000. Overall, 12.7 percent of the nation's population lives in poverty, which for a family of four means an income less than $20,000 a year." writes the Washington Post.
Is poverty more accepted in the US? According to the same article in the Post, "poverty forced its way to the top of President Bush's agenda in the confusing days after Hurricane Katrina," but:
As it happened, poverty's turn in the presidential limelight was brief. Bush has talked little about the issue since the immediate crisis passed, while pursuing policies that his liberal critics say will hurt the poor. He has publicly mentioned domestic poverty six times since giving back-to-back speeches on the issue in September. Domestic poverty did not come up in his State of the Union address in January, and his most recent budget included no new initiatives directed at the poor. (...)
"The Bush administration has shown a total lack of leadership on this issue," said former Democratic vice presidential candidate John Edwards, who has made a new war on poverty his signature issue as he travels the country in preparation for an expected 2008 presidential bid. [HT: Edit Copy]
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Tracked: Oct 11, 17:11