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Can Germany become the european economic powerhouse again?


hiker

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May 9, 2005
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The German economic miracle since the 50's appears to be under huge threat. Euro growth has stagnated because of the German difficulties. what can be done to get this giant back on it's feet.
 

watch-this-drive

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The German economic miracle since the 50's appears to be under huge threat.
Appears - they have had unemployment of over 10% for absolutely ages - they are f*cked there economy is very export led because there is no domestic growth - a world wide recession could hurt them alot more than others.
There labour laws are mad - if you want to fire someone most times you have to pay them a years wages just get rid of them.
There unemployment benefit was huge but is at last becoming sane.

They need serious 'Anglo-Saxon' fiscal economics and to dump the social model - then they might have a chance because there productivity is actually quite impressive.
 

hiker

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to watch-this-drive, yes their labour laws are a bit restrictive but as you say thay have huge productivity levels. I read a report recently that showed that the French have the greatest productivity levels of all the Euro zone countries. So the question is why are productivity levels so high? Is it because the workers are well protected legally? or could these high levels of productivity pull both countries out of the doldrums if they are realeased from over-restrictive work practises?
 

watch-this-drive

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hiker said:
to watch-this-drive, yes their labour laws are a bit restrictive but as you say thay have huge productivity levels. I read a report recently that showed that the French have the greatest productivity levels of all the Euro zone countries. So the question is why are productivity levels so high? Is it because the workers are well protected legally? or could these high levels of productivity pull both countries out of the doldrums if they are realeased from over-restrictive work practises?
I think their productivity is so high because their have been many employment freezes, businesses have been afraid to employ for so long because of the cost and the restrictions that they relied focused everything on increased productivity to make up for lack of extra labour.
 

hiker

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watch-this-drive said:
The German economic miracle since the 50's appears to be under huge threat.
there economy is very export led because there is no domestic growth
.
This is an interesting point. The germans are great at saving. I think on average they save about 15% of annual incomes. They appear to have maintained their exports because they export very high priced, high quality goods. the cost of living is relativly low. they seemed to be poised to expand because they have a huge labour pool dip into.
 

FutureTaoiseach

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Reasons for the problems in Germany:

A: Punitive tax-rates. A top rate of income tax of 58%, and a corporation tax rate of 55% for multinationals. Multinationals are hardly going to find such an environment attractive now are they?

B: Labour laws that are too restrictive. They force employers to give employees six weeks holiday per annum, and make it too difficult to sack workers.Again unattractive to multinationals.

C: 7 million immigrants taking German jobs by working for cheap.

They need to resolve these problems.
 

watch-this-drive

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hiker said:
watch-this-drive said:
The German economic miracle since the 50's appears to be under huge threat.
there economy is very export led because there is no domestic growth
.
This is an interesting point. The germans are great at saving. I think on average they save about 15% of annual incomes. They appear to have maintained their exports because they export very high priced, high quality goods. the cost of living is relativly low. they seemed to be poised to expand because they have a huge labour pool dip into.
You are obviously very bullish on Germany, I dont agree, their growth forecasts consistently disappoint, their unemployment is still growing.
The huge labour pool you are talking about is costing them fortune because it is doig anything - huge parts of the East are sucking up money like black holes and the Poles et al are on their doorstep offering cheaper labour, thats before their looming pension problem - I think you are being a little over optimistic
 

hiker

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[quote="watch-this-drive
You are obviously very bullish on Germany
[/quote]

Yep, your right there. For some strange reason I have huge admiration for these people more than any other european nation. I sincerely beleive that they can sort out their difficulties. I acknowledge the points you make but I woulk like to hear from anyone who has an optimistic veiw and why they have it.!!
 

eurocrat

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Dec 23, 2004
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I'm optimistic as well. Haivng lived in Germany and an being an Economics Graduate (as of tomorrow!, kinda...) I have quite a lot to say about this topic. Unfortunately I have my very final exams tomorrow and the irony of me failing European Economy because I spent the evening before hand discussing the German Economy on the Internet is too much for me!

So, tomorrow (more realistic the day after!) I will come back to this. I hope you can all wait.
 

Pidge

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Aug 5, 2004
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Let's hope the economy doesn't go down any further. The whole Turkish population in Germany would be at risk!!!
 

hiker

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eurocrat said:
I'm optimistic as well. Haivng lived in Germany and an being an Economics Graduate.
your veiws would be most welcome. Mine are based on gut feeling and an awareness of history. these guys (germans) don't seem to go down too easily. History shows them to be smart, tough and adaptable. Plus there is more of them (about 100 million german-speakers) than any other grouping in europe. I genuinly feel that europe's future lies with germany.
 

hiker

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rockofcashel said:
yeah hiker, and if things get really bad... they can invade Poland
I understand your fear, Rocky. Your "Invasion Complex" is shining thru...
 

Lilac

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May 23, 2004
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According to Germany's current economical disaster, it'll take a long time to be any economical 'house'.
I have no fear of any invasions- I think Germany has learned from history and will not invade anybody too soon.
 

hiker

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May 9, 2005
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Recent figures from Germany show an upturn in the economy there. Is Agenda 2010 begining to take hold?
 

seabhcan

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Sep 3, 2007
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14,327
Appears - they have had unemployment of over 10% for absolutely ages - they are f*cked there economy is very export led because there is no domestic growth - a world wide recession could hurt them alot more than others.
There labour laws are mad - if you want to fire someone most times you have to pay them a years wages just get rid of them.
There unemployment benefit was huge but is at last becoming sane.

They need serious 'Anglo-Saxon' fiscal economics and to dump the social model - then they might have a chance because there productivity is actually quite impressive.
Recent figures from Germany show an upturn in the economy there. Is Agenda 2010 begining to take hold?
Blast from the past.
 

Al.

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Joined
Sep 1, 2008
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1,622
Recent figures from Germany show an upturn in the economy there. Is Agenda 2010 begining to take hold?
As it turns out seven years later, at the expense of the rest of Europe. Nothing like having the ECB on your side, yes? That recovery was a little too fast.

Are you German?
 
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