Why does Germany have such a good economy?

[usmcstinger]

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

 

[iamwhatiseem]

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.

 

[High_Gravity]

Because they have excellent beer and German women have nice thick curvy bodies.

 

[BakshisMouse]

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

 

[BakshisMouse]

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.

Protectionist trade policies are not sustainable in today's world. If the eurozone folds, Germany's manufacturing base could take a major hit.

 

[EdwardBaiamonte]

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.

Protectionist trade policies are not sustainable in today's world. If the eurozone folds, Germany's manufacturing base could take a major hit.

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.

 

[Wiseacre]

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.

 

[KissMy]

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

German system of job subsidies to keep skilled workers employed were given a boost today when the International Monetary Fund released its latest overview of the global economy.

While the impact of the worst recession since the second world war has been to push up joblessness in every continent and every country, the IMF reported big variations between countries...

Germany, where employment protection laws are strong, would see "reduced job destruction in the downturn but also significantly less job creation in the recovery period, as hours per employee are increased".

 

[Samson]

I cannot help but note the scarcity of a Jewish population in Germany.



WHAT? NO ONE ELSE NOTICED???

 

[rdean]

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"?

 

[ekrem]

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.

Whole world goes into economic slowdown. In this context and given the situation around Germany, Germany is doing very well.
Germany's real problem is demographics (rapidly aging and continously decreasing population).

If you are high-qualified, you should move to Germany. There are 1 Mio jobs open (mainly in engineering), and until 2025 it will be 3 Mio jobs open.
If the economy can not get the workers, some segments of economy will move abroad in next years.

 

[ekrem]

I cannot help but note the scarcity of a Jewish population in Germany.



WHAT? NO ONE ELSE NOTICED???

They are in London.
There they produce deficits and practice deindustrialization.

 

[Samson]

I cannot help but note the scarcity of a Jewish population in Germany.



WHAT? NO ONE ELSE NOTICED???

They are in London.
There they produce deficits and practice deindustrialization.

I also note thay are not in Bejing........



Perhaps we should ignore this pattern before someone accuses me of being antisemetic.

 

[ekrem]

Germans are very serious people but even so their post war economic record has not been much better than the rest of Europe.

Germany absorbed East-Germany (Communists who never saw a banana in their life) and they transformed East-Germany from Grade-X into Grade-A infrastructure.
Engineers Give U.S. Infrastructure a 'D' Grade, $2.2 Trillion Price Tag

Plus, they finance most of the EU-show.

 

[rdean]

Germans are very serious people but even so their post war economic record has not been much better than the rest of Europe.

Germany absorbed East-Germany and it transformed East-Germany from Grade-X into Grade-A infrastructure.
Engineers Give U.S. Infrastructure a 'D' Grade, $2.2 Trillion Price Tag

Plus, they finance most of the EU-show.

Republicans call rebuilding American infrastructure a "waste of money".

 

[Samson]

Germans are very serious people but even so their post war economic record has not been much better than the rest of Europe.

Germany absorbed East-Germany and it transformed East-Germany from Grade-X into Grade-A infrastructure.
Engineers Give U.S. Infrastructure a 'D' Grade, $2.2 Trillion Price Tag

Plus, they finance most of the EU-show.

Republicans call rebuilding American infrastructure a "waste of money".

So?

Everyone calls your posts a waste of bandwidth.

 

[Wiseacre]

Germans are very serious people but even so their post war economic record has not been much better than the rest of Europe.

Germany absorbed East-Germany and it transformed East-Germany from Grade-X into Grade-A infrastructure.
Engineers Give U.S. Infrastructure a 'D' Grade, $2.2 Trillion Price Tag

Plus, they finance most of the EU-show.

Republicans call rebuilding American infrastructure a "waste of money".

Really? Got a link?

 

[iamwhatiseem]

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.

Protectionist trade policies are not sustainable in today's world. If the eurozone folds, Germany's manufacturing base could take a major hit.

Who said they are protectionist?
They rejected Walmarts (and America's) "everything is about the lowest price" mentality. That is not protectionist.

 

[theHawk]

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

Might also have to do with the fact they don't have 30 million illegals, or millions of welfare leeches.

 

[Franticfrank]

Previous points aside,I think alot of Germany's strength also comes from its location in Europe with borders to Denmark, Poland, Czech Republic, Austria, Switzerland, France, Luxembourg, Belgium, Netherlands with a short link to the UK. Thats alot of markets within easy reach. It has a coastline and an excellent rail and road network. Statistics about Germany show that a large population with high education standards and good work ethic, combined with the factors above can be very successful.