5 ms·
Germany does well because China, India, South Korea and Brasilia are not that badly affected by the US crisis. They are still buying machines and cars. It is n
by beza1e1 16y ago
Germany does well because China, India, South Korea and Brasilia are not that badly affected by the US crisis. They are still buying machines and cars.
It is not that the german government is doing anything better than others. We are just lucky that our economy is based on exporting cars.
- eru 16y agoYes. Also the Germans at least tried to balance their budget in the boom years. Britain ran a huge deficit even at the height of the bubble.
- maigret 16y agoNot only. It's not the "current government" action, but Germany has some law to finance shorter work time during crises. Thus companies can start over now that contracts are coming in with almost pre-crisis workforce and skills. America can't do that that way with all the layoffs. Also, while the car industry is very important in Germany, a good part of the exports to China and other growing countries are made on big, complex machines and infrastructure-building products.
- eru 16y agoOn the other hand, the easier layoffs in America make firms more likely to hire workers in the first place. (At least that's what the theory says.) Germany has lots of problems with the long term unemployed. (Also migrants and women should be better utilized in the workforce.)
- maigret 16y agoYes, I really agree with that - though I suppose many (if not most) countries also suffer the second problem.
- eru 16y agoIf you look at the statistics (the Economist ran some recently), America has fewer long term unemployed. Also it is relatively easily to become accepted as an American a few years after you come to America. At any rate, at least your kids will be considered American. In Germany, even when they were here for a few generations, the, say, Turks are still considered Turks.