Germany A Rare Model Of Recovery In Global Recession

[onehandle]

High taxes, heavy regulation, powerful unions and a big welfare state are turnoffs for pretty much any true blue (and especially red) American, but they are also the four cornerstones that have led Germany to its strongest quarter in 20 years.

Today, the world's fourth largest economy in the world confirmed a 2.2 percent GDP growth in the second quarter, a tremendous feat for a developed nation during a global downturn. To compare, America grew 0.6 percent during the same quarter (and similarly, France grew 0.6 percent and Spain by 0.2 percent).

German unemployment has decreased to the near pre-recession level of 7.6 percent, from 9.1 percent in January.

Economists more or less agree on the reasons: first of all, as the second-largest exporter in the world, German GDP was bolstered by a growing Asian appetite for German brands like BMW and Mercedes-Benz. In the first half of the year, Germany sold $575 billion worth of goods and services, up 18.2 percent from the year before. Although some analysts are cautious about relying on exports, there do not appear to be any waning signs, yet.

http://www.huffingtonpost.com/2010/08/24/germany-economic-recovery-recession-lessons_n_692534.html

[Demeter]

1. That's Because Germany Didn't Let American Business Practices

stall out their economic engines.

Blame it on Yale, Harvard, Stanford, and the like.

And God bless Angela Merkel, who can recognize a creep when he puts his filthy hands on her shoulders without an invitation....

[applegrove]

19. And the wingnuts used to use germany as an example of how liberal

policies result in high unemployment. Such wingnuts were wrong then and they are wrong now.

[Demeter]

20. Exactly

[MajorChode]

28. I'm not sure that's entirely true

Germany certainly supports their corporations. If anything, they do so much more vehemently than Americans do. The German people support German corporations, both politically and economically. The biggest difference is the German people value quality of life issues over the almighty dollar (or euro in this case), that's why they choose higher taxes and a truly regressive tax structure.

The reason why Germany is doing well now is they made a conscience decision to embrace and invest in East Germany when times were good (which cost them dearly). They are now reaping the rewards of that investment as they should.

[Demeter]

31. America Doesn't SUPPORT Corporations--It ENABLES Them

It gives the Corporations license to commit crime and provides the armed forces, CIA, FBI and the new "Homeland Security" to enforce it. And US leaders empty the public purse into the Corporate pockets, takes their bribes, turn blind eyes on their crimes, the list is endless.

[TygrBright]

2. But... I thought them yerpeen furners is all soshulists?? n/t

[grasswire]

3. Americans are CHOOSING to allow another Great Depression

It could turn on a dime. DEMAND these four things:

1. Tax the rich their fair share.

2. End corporate welfare.

3. Enact legislation discouraging offshore jobs and encouraging return of jobs to U.S.

4. Pass out a significant stimulus to every adult making less than $100,000/year, immediately. Significant might be $5000.

[Turbineguy]

4. Germany doesn't have

the GOP.

Conservative Germans don't want to destroy their country.

[valerief]

9. The BIG BIG thing Europe doesn't have is Jesus. Their atheism allows them to be rational. nt

[Fumesucker]

5. Do not bind the mouths of the kine that treadeth out the grain..

That is the essential lesson, Germany prospers because its middle and lower class have not been economically raped by the upper classes.

[tourivers83]

6. Life under the shield.

Germany, like many other countries in the Western World lives under the protection of the Pax Americana. The American Peace. The peace dividend that they enjoy has enabled them to have economic growth and prosperity with a standard of living greater then Americas. I don’t know for sure what I am trying to say with this but its expensive, we don’t get much thanks for it and some people think maybe we should pick up our toys and go home. Let someone else be the world’s policeman:popcorn:

[marmar]

7. Do you believe your own bullsh*t?

I hope so, 'cause nobody else here does.

[tourivers83]

8. Life under the shield.

What did I say that is not true?:nopity:

[CTyankee]

11. Well, the Cold War is over. Has been for more than a few years.

The fact of the matter is that Germany made a choice to follow Democratic Socialism as their mode of governance after WW2. So that even after the fall of the Berlin Wall and Communism, Germany (now united) was able to use their considerable business and social policy skills to bring about a society that both promotes entrepreneurism and a rich social safety net.

We would do well to copy it...

[Demeter]

21. What Enemy?

Why does Germany need a shield?

It's like the man standing out in the street waving his arms wildly.

"What are you doing?" a passer-by asks.

"I'm scaring away the wild elephants!" he cries.

"There are no elephants in the continent," the passer-by replies.

"IT's working!" the man exclaims.

[tourivers83]

24. I wear sunglasses at night.

Actually, “Life under the shield,” refers to a movie “Highlander 2: The Quickening.” In this movie Connor builds a force shield to protect Earth from the ozone layer. That shield did not work out too well either, but it was a good movie. My friends tell me I have a strange sense of humor.:hide: :popcorn: :rofl:

[meowomon]

10. I agree about our troops coming home

We absolutely don't need to be the world's police. I agree on that point, but it bears no responsibility at all on Germany's ability to recover from the bad economic times.

[izquierdista]

14. No thanks, because it's not needed

Only America is stuck thinking that armaments are the answer to every dispute. Well, America and lawless places where the best arsenal makes you the most respected (e.g. Somalia, Chad, Kyrgyzstan, etc).

As far as Europe goes, the Americans and their Pax Americana had nothing to do with it. The French, as well as the Germans and the Russians and the Japanese learned a lesson from WWII that Americans didn't -- war is hell. France and Germany decided in starting the Common Market, the forerunner of the EU, that they no longer had the war option, that the next one would obliterate them both and that they had better learn to be good neighbors.

[tourivers83]

17. War and peace.

These are some good point’s, thank you. But as far as WW2 goes most Americans did not want any part of it. If fact President Roosevelt was reelected on a promise to keep us out of it. :hi:

[malaise]

12. Germans work hard and play hard

They produce - they do not gamble for riches while destroying their manufacturing base.

[onehandle]

13. Yep. They make things and fight to keep their workers employed.

We fight over Guns, Gays, and God while the rich laugh all the way to the bank.

[LAGC]

25. You seem to be doing a lot of the fighting over the Guns...

Just saying...

[tourivers83]

15. Guns or toilet paper? Life under the shield.

I previously posted this on a thread in Latest Breaking News about Germany doing a major cutback in the military. Although the term American Peace may be a bit hard to accept it is real. Germany does not have to worry about anyone attacking them. The world has not had a major war in almost seventy years. And yes being of German Heritage I am impressed with what they have accomplished and we could do the same if we did not spend all our money on guns. :bounce:

[Davis_X_Machina]

16. Check latest Krugman...

....before any quick judgments or congratulations.

It is -- surprise -- complicated.

[Demeter]

22. Germany Also Defended the Euro Against US-Anglo Currency Speculators Successfully

and slapped down their banks really hard. And banned Goldman Sachs.

Germany has reason to be proud and prosperous.

[MajorChode]

29. Krugman is talking about something different

When the Huffpost article mentions "austerity", it talks about personal austerity in that the Germans didn't dig themselves into a hole of personal debt like Americans did. When Krugman is talking about austerity, he's talking about it from a governmental standpoint because some wingnuts are trying to claim is the reason for Germany's sharp increase in growth (which isn't true).

[Prometheus Bound]

18. That's April to June. In July German car sales plunged by 30%.

German car sales plunge by 30% in July
http://www.google.com/hostednews/afp/article/ALeqM5hjdgP9OeioiaLy0q_b4_oUGfdiqA

Also, what happens when the Chinese economy slows down.

[Commie Pinko Dirtbag]

23. "the world's fourth largest economy in the world"

[Prometheus Bound]

26. Eagle eye!

The world's fourth most largest No.4 economy in the world.

[pampango]

27. Amazing what investing in your own people can do. Strong unions, lots of trade, progressive taxes

and good health care make a huge difference.

[blindpig]

30. The 'German example' is false

Yeah, Germany is exporting it's way out, but can everybody do that? Of course not, capitalist competition precludes that. If there are winners then there will be losers, and what of them?

Nationalistic competition among capitalist was the primary cause of WWI, WWII was a direct continuation.....