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It should be noted that Germany's wage/GDP growth has been quite stagnant since the 1970s as well. Its auto industry has been successful, but that can be attrib
by CryptoPunk 6y ago
It should be noted that Germany's wage/GDP growth has been quite stagnant since the 1970s as well. Its auto industry has been successful, but that can be attributed to numerous other factors, like its effective education system, which puts a much heavier emphasis on vocational training, its engineering culture, and government policy focused on promoting auto manufacturing, all of which can counter-act the negative effects of its unions.
Also, German unions are less antagonistic to management than American unions. The UAW took over the Big Three in the 50s and 60s, and they immediately went from extremely successful, to getting to the brink of bankruptcy.
- ska 6y ago> Also, German unions are less antagonistic to management than American unions. The same could be said in the other direction. Fundamentally they are set up differently, and one of the results is that corporate-union relationships are more collaborative in Germany, more combative in USA.
- Aerroon 6y agoAnother point to consider is that Germany also has/had access to cheaper labor through people moving there from the east. And later the euro allows them to export heavily while not skyrocketing the price of their currency, because other euro countries somewhat balance it out. It might be that unions are the reason why German car companies are doing well, but there are definitely other factors at play too.