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>But you could make the same argument against any US state that remains cost competitive due to the currency. Indeed you can. >And it also discounts the fact

>But you could make the same argument against any US state that remains cost competitive due to the currency. Indeed you can. >And it also discounts the fact that Germany did very well during the period when it did have it's own currency. This is true. However Germany also gets decent manufacturing benefits from the income disparity in the east. >As it is, German economic performance does have an effect on the Euro, being the largest member state. Of course. However, about half of Germany's exports are to Eurozone, for which EUR flucations have no effect.

rb2k_ 16y ago
> However Germany also gets decent manufacturing benefits from the income disparity in the east. Strangely enough, the east has (by far) the highest unemployment rate in Germany: http://upload.wikimedia.org/wikipedia/commons/6/6f/Arbeitslosigkeit_2010-10.png http://upload.wikimedia.org/wikipedia/commons/6/6f/Arbeitslo... The big German manufacturing plants for e.g. cars are usually also found in the south/west (Daimler + Porsche around Stuttgart, BMW in Bavaria). This goes even as far as adding a "solidarity surcharge" to help the east: http://en.wikipedia.org/wiki/Taxation_in_Germany#Solidarity_surcharge http://en.wikipedia.org/wiki/Taxation_in_Germany#Solidarity_...
- lispm 16y ago
  The automotive industry was the first to build new state of the art factories in East Germany. Porsche in Leipzig, VW's transparent factory ( http://www.glaesernemanufaktur.de/gmd.jsp?dok=&lang=&docid=&ap= http://www.glaesernemanufaktur.de/gmd.jsp?dok=&lang=&#38... ), ...
  - lispm 16y ago
    The VW transparent factory: http://www.youtube.com/watch?v=nd5WGLWNllA http://www.youtube.com/watch?v=nd5WGLWNllA http://www.youtube.com/watch?v=OeYi87P31UQ http://www.youtube.com/watch?v=OeYi87P31UQ
- DuncanIdaho 16y ago
  That is not due to work shortage - but due to shortage of work that can be done by socialistic, highly (unproductively) unionized and unqualified work-force. Eastern Germany will stay like that until the workforce that was raised in socialism gets out of the way. Eastern Germany has more in common with Poland, Czech and Slovakia than with western Germany and France. I'm from ex-socialist country and it is the same situation here - plenty of high value added opportunities are available - but nobody to take advantage of them.

rb2k_ 16y ago

> However Germany also gets decent manufacturing benefits from the income disparity in the east. Strangely enough, the east has (by far) the highest unemployment rate in Germany: http://upload.wikimedia.org/wikipedia/commons/6/6f/Arbeitslosigkeit_2010-10.png http://upload.wikimedia.org/wikipedia/commons/6/6f/Arbeitslo... The big German manufacturing plants for e.g. cars are usually also found in the south/west (Daimler + Porsche around Stuttgart, BMW in Bavaria). This goes even as far as adding a "solidarity surcharge" to help the east: http://en.wikipedia.org/wiki/Taxation_in_Germany#Solidarity_surcharge http://en.wikipedia.org/wiki/Taxation_in_Germany#Solidarity_...

lispm 16y ago
The automotive industry was the first to build new state of the art factories in East Germany. Porsche in Leipzig, VW's transparent factory ( http://www.glaesernemanufaktur.de/gmd.jsp?dok=&lang=&docid=&ap= http://www.glaesernemanufaktur.de/gmd.jsp?dok=&lang=&#38... ), ...
- lispm 16y ago
  The VW transparent factory: http://www.youtube.com/watch?v=nd5WGLWNllA http://www.youtube.com/watch?v=nd5WGLWNllA http://www.youtube.com/watch?v=OeYi87P31UQ http://www.youtube.com/watch?v=OeYi87P31UQ
DuncanIdaho 16y ago
That is not due to work shortage - but due to shortage of work that can be done by socialistic, highly (unproductively) unionized and unqualified work-force. Eastern Germany will stay like that until the workforce that was raised in socialism gets out of the way. Eastern Germany has more in common with Poland, Czech and Slovakia than with western Germany and France. I'm from ex-socialist country and it is the same situation here - plenty of high value added opportunities are available - but nobody to take advantage of them.