German Economics Tradition?

Discussion in 'Economy' started by fluffernutjob, Jul 28, 2012.

  1. fluffernutjob
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    fluffernutjob Rookie

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    I'm curious about the dominant train(s) of economic thought in Germany. Merkel and her advisors wield tremendous influence in Europe and, by extension, thr world these days. I feel I ought to be considerably better informed.
     
  2. onecut39
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    onecut39 VIP Member

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    Google "Germam economic model"
     
  3. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    Germany favors austerity or fiscal common sense and responsibility. They live within their means and don't want to make loans to the rest of Europe which is broke from not living within their means.
     
  4. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    They made structural changes about 10 years back, including to their labor model, which helped them stay competitive in the world economy. And they reined in spending, I believe in the next year or two they'll begin the requirement to balance their budget. Novel concept.
     
  5. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    and they have no minimum wage so people can actually get jobs!!! Another novel concept!!
     
  6. onecut39
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    onecut39 VIP Member

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    Apparently no one googled "German economic model".
     
  7. Rshermr
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    Rshermr VIP Member

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    Ed, you have proved that you are a really good deciever. You state something that is almost true - that germany has no minimum wage (though construction workers do) and then indicate that this lack of minimum wage is a reason for their success. But then there is the rest of the story, which ed does not want anyone to know.
    First, nearly all wages are set by collective bargaining in Germany. and those wage rates are enforsed by federal law.
    And second, that it now looks as if Germany will very shortly have a minimum wage.
    Here is the link to the information (if your a con, you probably do not want to read this info)
    Wages in Germany: Merkel and the minimum | The Economist
     
  8. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    They're talking about a minimum wage for political reasons, not economic ones. Looks like that's way they're going to go, and I'd be willing to wager their UE numbers will worsen as a result. And so will the economic growth numbers too.
     
  9. onecut39
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    onecut39 VIP Member

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    Germany is an economic powerhouse. Their main problem is the rest of the EU.
    That may be their downfall.
     
  10. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Lately they haven't been that powerful. They're pretty close to a recession, cuz they're an export driven economy and there's not a lot of buyers out there. If I'm not mistaken their economic forecast got downgraded recently from neutral to negative.
     

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