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The German economy is indeed heavily influenced by its manufacturing sector and its reliance on large trade surplusses. Consequently the German workers can't be
by oezi 1y ago
The German economy is indeed heavily influenced by its manufacturing sector and its reliance on large trade surplusses. Consequently the German workers can't be granted huge wage increases because it would reduce their competitiveness internationally.
In contrast the US economy is service-based and thus isn't constrained to scale their prices up so much. Of course manufacturing becomes very hard to maintain when skilled workers can earn >100k.
All stats show that top US tech companies earn incredible amounts of money but their share of GDP growth isn't as big as the Mag7 share of the stock markets makes you think. (<15% of GDP growth in 2024)
- nradov 1y agoHow does Australia fit into that model? Their economy is based more on resource extraction than on technology or manufacturing, and wages are high relative to most other developed countries.