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Thats how they sell it, but the real goal was very different. To cite our former Chancellor Schröder: " Wir müssen und wir haben unseren Arbeitsmarkt liberalis

by kephra 12y ago

Thats how they sell it, but the real goal was very different. To cite our former Chancellor Schröder: " Wir müssen und wir haben unseren Arbeitsmarkt liberalisiert. Wir haben einen der besten Niedriglohnsektoren aufgebaut, den es in Europa gibt. Ich rate allen, die sich damit beschäftigen, sich mit den Gegebenheiten auseinander zu setzen, und nicht nur mit den Berichten über die Gegebenheiten. Deutschland neigt dazu, sein Licht unter den Scheffel zu stellen, obwohl es das Falscheste ist, was man eigentlich tun kann. Wir haben einen funktionierenden Niedriglohnsektor aufgebaut, und wir haben bei der Unterstützungszahlung Anreize dafür, Arbeit aufzunehmen, sehr stark in den Vordergrund gestellt. " Translation by Google: " We must and we have liberalized our labor market. We have built one of the best low-wage sectors, which is available in Europe. I advise all who deal with it, to deal with the realities apart, and not only with the reports on the circumstances. Germany tends to put his light under a bushel, even though it is the worst thing you can actually do. We have built a working low-wage sector, and we have in supporting payment incentives to take up work, provided very strong in the foreground. " s/supporting payment incentives/if you do not accept the 1 Euro job, we cut your social security payment/ The result of this wage dumping can be seen in the Euro crisis. People around Europe become unemployed, and those states collect dept, as they can no longer escape German wage dumping, by lowering their currency.

avz 12y ago
If Ein-Euro-Jobs were used by Germany as a wage-dumping tactic then the euro crisis and consequential unemployment rise in the south of the continent would lead to increase in the number of people in Ein-Euro-Jobs in Germany. Now, since these people are counted as unemployed for statistical purposes this would mean unemployment figures in Germany would be soaring, too. However, the reverse is happening.
- kephra 12y ago
  People who have an 1 Euro job, or are "educated" to write job applications are no longer counted as unemployed. This is a nice statistical trick to lower the high numbers. And even then the long term unemployment is extreme, with a large north south and east west imbalance, e.g. Berlin 16,8%, Bremen (my home town) 14,3%, till Bayern with only 3,4%. You also need to consider that export oriented wage dumping means to export unemployment. So those people who have an underpayed job here, cause unemployment in southern Europe.
  - moe 12y ago
    I often hear this sentiment (preferably harshly phrased) and agree with most of your observations, but what is your proposed solution? Should Germany act against its own interest and not export its unemployment?

by kephra 12y ago

avz 12y ago

If Ein-Euro-Jobs were used by Germany as a wage-dumping tactic then the euro crisis and consequential unemployment rise in the south of the continent would lead to increase in the number of people in Ein-Euro-Jobs in Germany. Now, since these people are counted as unemployed for statistical purposes this would mean unemployment figures in Germany would be soaring, too. However, the reverse is happening.

kephra 12y ago
People who have an 1 Euro job, or are "educated" to write job applications are no longer counted as unemployed. This is a nice statistical trick to lower the high numbers. And even then the long term unemployment is extreme, with a large north south and east west imbalance, e.g. Berlin 16,8%, Bremen (my home town) 14,3%, till Bayern with only 3,4%. You also need to consider that export oriented wage dumping means to export unemployment. So those people who have an underpayed job here, cause unemployment in southern Europe.
- moe 12y ago
  I often hear this sentiment (preferably harshly phrased) and agree with most of your observations, but what is your proposed solution? Should Germany act against its own interest and not export its unemployment?