What do the Germans know about economics that we don''t know?

JDPriestly

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Mon Apr-05-10 02:15 PM
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What do the Germans know about economics that we don''t know?

Imagine -- fewer credit cards, workers sitting on the boards of the largest companies, tremendous responsibility for assisting its poorer neighbors and even integrating into its economy a far less developed part of itself, laws that discourage companies from laying off employees during recessions, a close relationship between research scientists and industry, government sharing control of the banks, somewhat protective trade policies and . . . . a strong manufacturing sector in its economy. That's Germany. I don't need to remind you that Germany has no oil and does not like nuclear energy. It is going solar and bio- in addition to importing oil and burning some coal and, yes, doing quite well, thank you.

From American Prospect:

Per-capita income. Measured at ruling exchange rates as of 2008, Germany's per-capita income was $44,600. That was within hailing distance of America's $47,500 -- an impressive performance in itself and all the more so when you realize that the typical German worker put in just 1,432 hours in 2008 versus 1,792 hours for the typical American.

Life expectancy. Germans now live nearly 14 months longer on average than Americans. By contrast, as recently as the early 1980s, life expectancy in the former West Germany trailed the United States by fully 17 months (and, of course, East Germany was even further behind). A nation's life expectancy is a function of several key aspects of national well-being, and as such it is a useful reality check on purely money-based economic rankings. In particular, it tests a nation's ability to provide its citizens with decent health care.

Trade. Germany's trade performance over the longer term has been nothing short of spectacular. From 1998 to 2008 the German current account went from a deficit of $5.9 billion to a surplus of $267.1 billion. The contrast with the United States could hardly be starker: The American current account deficit shot from $233.8 billion in 1998 to $568.8 billion in 2008.

. . . .

Jobs. Even in the case of unemployment -- a yardstick that for most of the two decades since reunification had been a major embarrassment for Berlin officials -- Germany is now doing better than many other nations. As of December 2009, the jobless rate, at 8.1 percent, was well below America's 10 percent.

. . . .

http://www.prospect.org/cs/articles?article=Germanys_economic_engine

And more recently

BERLIN, March 24 (Reuters) - German manufacturing output growth surged ahead in March while service sector activity picked up speed, a survey showed on Wednesday, pointing to a stable footing for recovery in Europe's largest economy.

A flash estimate of the Markit purchasing managers' index (PMI) for the manufacturing sector jumped to 59.6 from 57.2 in February, with activity expanding at its fastest rate since April 2000.

Sub-components tracking output, new orders and foreign demand grew at their quickest pace since the survey began in 1996, suggesting the boost would feed into the wider economy.

"It's not a hiccup -- new orders remain elevated and that suggests we will see ongoing growth in manufacturing and that should help sustain the services sector," said Chris Williamson, chief economist at data compiler Markit.

http://www.forexyard.com/en/news/Manufacturing-surge-boosts-German-economy-in-March-2010-03-24T083004Z

I posted this as a response in another thread but think it deserves its own thread. What could we learn from Germany? I don't know but I think we should ask ourselves that question.