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if German wages were depressed and labor was so cheapened, how come they are still able to save more than their counterparts?
by segmondy 7y ago
if German wages were depressed and labor was so cheapened, how come they are still able to save more than their counterparts?
- adventured 7y agoThey consume less. Their economy is heavily tilted to being an export power rather than a consumer economy. Household consumption is around 52% of their GDP. For the US it's closer to 67-68%. Germany's personal savings rate is about 10.x%. The US - infamously tilted toward consumer spending - is actually not far behind at 8.x% (up from a low of 2.2% in 2005).
- gingabriska 7y ago>Household consumption is around 52% of their GDP. For the US it's closer to 67-68%. Wonder how much of that is healthcare and education which is wayyy expensive in US.