Why does Germany have such a good economy?

Discussion in 'Economy' started by usmcstinger, Jun 5, 2012.

  1. usmcstinger
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    usmcstinger Silver Member

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    ECB holds off to force politicians' hand in crisis

    The reforms are tough to accomplish politically because they often mean richer, better run countries — such as Germany — taking on some of the risk for bad behavior by other countries that don't manage their economies or finances well. Or it means governments giving up control over banks or finances. And most would take years to implement. Still, quick decision-making by governments could reassure the markets and help the eurozone step back from the edge.
    ECB holds off to force politicians' hand in crisis | Comcast

    The Answer:
    Since being sworn in as chancellor on November 22nd, 2005, Merkel has led a Grand coalition consisting of the CDU, CSU, and the Social Democratic Party of Germany (SPD), while also continuing her free-market economic agenda and relationship with the United States. She has also been focusing on redesigning the German health care system and tax reform.

    When Analysts say the problem is that nations like France, Italy and Greece have reached the limits of how much they can borrow and spend without driving up interest rates to unaffordable levels, leaving them little room to try to stimulate their economies through such conventional measures as tax cuts and increased infrastructure spending.
    You just can fix stupid countries!
    European voters clear: Austerity won't be tolerated - Washington Times
     
  2. iamwhatiseem
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    iamwhatiseem Gold Member

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    They have a solid manufacturing base of high quality/highly sought products.
    At the same time you have the German citizenry. A base of people that understand all to well that their consumer choices has a direct impact on each other. Something Americans have absolutely no clue on.
    WalMart failed abysmally in Germany. Quickly opening 85 stores...they are all closed today. Every one of them.
     
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  3. High_Gravity
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    High_Gravity Belligerent Drunk Supporting Member

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    Because they have excellent beer and German women have nice thick curvy bodies.
     
  4. BakshisMouse
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    Rather than austerity and tax reform, the real reason for Germany's prosperity the euro currency's fostering of Germany's trade surplus. Spain can be said to have managed its finances better than Germany did in the pre-crisis years.

    Spain's Debt to GDP

    Germany's Debt to GDP
     
  5. BakshisMouse
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    Protectionist trade policies are not sustainable in today's world. If the eurozone folds, Germany's manufacturing base could take a major hit.
     
  6. EdwardBaiamonte
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    Germans are very serious people but even so their post war economic record has not been much better than the rest of Europe. Now they are more conservative economically so that has been a big help of late, plus they have been damn lucky to get huge premiums for their cars: BMW Audi Mercedes and Porsche and to a lesser extent VW.
     
  7. Wiseacre
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    The last GDP numbers I saw show Germany as very close to recession territory. They are an export driven economy, but there ain't a lot of buyers out there right now. If I'm not mistaken, they took steps some years ago to pare their gov't spending and keep taxes competitive.
     
  8. KissMy
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    Here in the USA we pay people not to work & tax the ones who do work. In Germany they subsidize their workers.

    Guardian UK: IMF - German jobs saved by short-time working subsidies
     
    Last edited: Jun 6, 2012
  9. Samson
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    I cannot help but note the scarcity of a Jewish population in Germany.

    :eusa_hand:

    WHAT? NO ONE ELSE NOTICED???

    :confused:
     
  10. rdean
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    Merkel is preparing a new plan against the crisis: “Employment, investments and innovations”

    Germany understands that government has a role in organizing the country and improving the infrastructure. People in other countries may call themselves moderates or conservatives, but the conservatives in this country have no clue what they are doing and their "anti government" policies have proven to be a terrible disaster. Look at the idiots who actually think rebuilding America's aging infrastructure is a "waste of money" and see no connection between a competitive infrastructure and attracting business.

    Like Mitt says about homeowners having problems, the country will have to "hit bottom" before it can "bounce back". Since he was wrong about everything else, I wonder if it will "bounce back" like he thinks it will? If he has no plans now, what plans will he have after it "hits bottom"?
     
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