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The last page of the article highlights a problem with your line of thought: Wages didn't profit (much) from the economic growth of the last years. And without
by sgift 16y ago
The last page of the article highlights a problem with your line of thought: Wages didn't profit (much) from the economic growth of the last years. And without money germans cannot consume more. This is a problem for an ever increasing part of the work force as cost of living is on the rise.
(There were people who benefited from the economic growth - I count myself among them - but that doesn't invalidate the argument regarding the whole work force)
- stretchwithme 16y agoWages rose quite a bit in countries that were net borrowers. All the extra cash bid wages up and the higher wages even caused many to move to those countries to get those higher wages. Importing goods is not the only way to import labor. The net lender countries didn't experience the same wage growth. But they didn't see their currencies inflate either. Except for those otherwise soundly managed countries that for some reason share a currency with a bunch of poorly managed countries. These countries got the stable wages and the privilege of subsidizing their partners.