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1. Higher wages would lead to more expensive (and therefore lower) exports, and to higher consumption, leading to higher imports. The government can cause wages
by mdemare 12y ago
1. Higher wages would lead to more expensive (and therefore lower) exports, and to higher consumption, leading to higher imports. The government can cause wages to rise by raising the minimum wage, raising the salary of its employees, and hiring more government workers (e.g. for infrastructure projects).
2. The assumption that Germany's high saving is good for Germany is debatable. If Germans save more than they consume, some other nation must consume more than they save. Germany has been, and might be again in the future, forced to bail out those countries.
3. I can also recommend the Khan Academy lectures on economics.
- steveridout 12y ago1. True, that makes sense. 2. But isn't Germany's position at the moment infinitely preferable to Greece's? Obviously the situation would be better if no bail outs were required, but if they are, I would much rather be the country with the surplus. 3. Good idea, I've watched a few already but should continue.
- mdemare 12y agoSuppose two men are in a lake, and one man is on top, pushing the other man down below the water surface. Is the position of the man on top infinitely preferable to the position of the other? Absolutely! Is that an argument for acting as the man on top? I wouldn't say so.