Germany: The admired model for the globe ?

Germany actually has a remarkably similar economy to that of the United States...service sector heavy. The country has also been profiting quite heavily from the Euro at the expense of smaller countries in the past 10 decades (not exploitive, just natural)....this is coming back to bite them and other most established Euro nations.

 

You are not making any sense at all.

 

Germany relies no more on Industry for its economic prosperity than the U.S. They are a service economy.

As to the Euro:

http://www.reuters.com/article/2011/11/04/uk-germany-euro-benefits-idUSTRE7A362720111104

http://www.nytimes.com/2011/04/23/business/global/23charts.html

In a nutshell, German exports don't cause their currency to appreciate because they're held down by Portugal/Spain/Ireland/Greece and all the other poorer countries in Europe. In exchange for this, the poor countries are unable to print more money and inflate their way out of debt/high labor costs.

 

Well spotted .
It takes one to know one !!

 

Well, I don't want to be rude but I knew all of that. I was aiming at your comment that the American and German economies are very similiar? Sorry, but that is just isn't correct. And this has nothing to do with services -- we are all services economies in the West.

It is mainly a story about SMD's, innovation, certain socio-economic policies and education.

 

You know,...

I was banned for a week, and I truely missed your snappy remarks, Raymondo!

 

What were the conditions for your re-appearance ?
I trust you are following medication proposals and return now realising that the UK are the guiding lights of the EU .
The world as well , if we are going to be honest !!

Incidentally the word is , Savvy , not Snappy . Do I sound like a ficking crocodile?

 

I'll start recognizing that the UK is a "guiding light" of the EU when Easter falls on a thursday.

 

Now it's funny you should mention that .
All the books have recorded Jesus dying on the assumption of GMT . However , when all local factors are put into the equation , it turns out that he was crucified about twelve minutes to nine on the Thursday evening . It is thought that the twelve was symbolic for the Apostles and the arms outstretched at 20.48 were symbolic of JC on the cross .
So , as predicted we are now agreed that the UK is both the guiding light of the EU and the Catholic Church .

 

The capital of Germany, Berlin, is again seen as one of the movers and shakers...

Hub Culture 2012 Zeitgeist Ranking

4. Berlin (2011 rank: 4)

Berlin is like your hipster friend who went into local politics and ended up raising your property taxes. All the cool kids are still there, but the city's evolution into political power player is complete, and that's replacing the hip factor with raw power. Berlin is calling the shots across Europe - from the Greek crisis to EU interest rates, and so for every underground dungeon slash disco there are now two lawyers in a coffee shop talking about work. That's life.



Source

 

I am sorry, but I don't agree in any of these points.

The economy has of course as in any developed country a strong service sector, but a decisive difference from the US is it is export oriented. There you can already see the problem by comparing it, the US does not have the option up to that extent. If the US would produce for the world market in the same manner as Germany per capita maybe the whole world wasn't enough to provide the US with customers. As Germany produces mainly manufacturing goods for Europe a comparison to one state of the US which produces mainly for the US market would be more fitting than a comparison with the US as a whole.

The backbone of the German economy are companies of a medium size, focued into special products and sectors in which they are sometimes world market leader. Nevertheless these companies oftentimes exist to provide heavy industry and larger companies.

As for the Euro that's a complicated topic and the one hand it was for some of our companies a great opportunity, but it lead to a incomparable capital drain which was once desastrous for Germany. Becauso of that problem politicians were forced to make labour cheaper and cheaper which had effects on the loans. One reason for Germanies success now is that the people here work cheaper now than in other country, so the so called succes is a mixed blessing.

 

Germany has a very efficient economy. When a country gains an export advantage the value of its currency increases. More people demand the country's goods, which they buy in said currency, so the prices go up. Since the Euro is dilluted all the way across the Euro-zone, Germany's "currency" doesn't increase. This is at the direct expense of countries like Spain, Italy, Greece, Ireland etc. These countries cannot produce as effectively as Germany. Typically this would lead to less demand (since its more expensive). This demand would cause the currency in these countries to go down in value so they could compete with Germany. Since these countries are unable to "devalue" their currency (making their goods cheaper), they cannot compete. The lack of tariffs and other trade restrictions in the EU mean that German goods can be sold and produced more cheaply. This is why Germany makes so much money off of selling goods in the rest of Europe. None of these countries can do anything to reduce the trade imbalance.

This is a very simplified answer but covers the basics. Angela Merkel has even directly admitted that Germany benefits from the Euro/EU more than any other country.

The same basic principal occurs with U.S./China trade where China pegs the value of its currency to U.S. dollars. This keeps the trade deficit intact and makes it difficult for U.S. firms to compete.

 

Poor demographics will mean Germany will lose nearly 20 million people over the next 40 years, and it will age, germany's future is grim, very grim.

 

I´d rather reckon with a strong and healthy Germany throughout the next 10-20 years. A timeline that is predictable.

Germany will manage to attract highly talented experts to fill the labor market.

 

Cultural invasion of Britain celebrates Germany's big shift - The Guardian

Until the fall of the Berlin Wall, the popular British perception of German culture involved either a stout opera singer in a horned helmet warbling Wagner, or Nena on Top of the Pops singing about 99 Red Balloons. Much has changed in the intervening two decades, not least Berlin's coronation as a "poor but sexy" international capital of cool.

 

Survey in 7 EU member states :

 

It would be nice if you refrained from underestimating the British and their collective eye sight , and recognised the dramatic license that journalists these days need to have to get people's attention . I am afraid the German contribution to European culture remains about the same as it is to German culture -- not a lot .Red Balloons and rubbish music is about right .
As for the minority paper like the Guardian -- a paper for a type of person that OK people do not look for when seeking company , and which has a circulation trending toward zero at a fast rate .It meets the needs of those that prefer to walk through life with permanent back ache caused by leaning permanently to the left , irrespective of the stupidity of the cause they have chosen to support on any given day .
Germans still have not devised a way of making themselves laugh . It will continue to hold them back when it comes to mixing .Which presently they are best advised not to attempt .

 

And the Brits still have not devised a way of winning penalty shoot outs....

 

It's not your week , Cosmos
There was a blip many years ago where we could not fathom out how the Germans were cheating .
Extensive Computer Analysis has shown us how the perfect penalty is scored .
We have perfected the technique and also distributed a great amount of disinformation on the subject .
We are ready to confound the world .
There will be no more missed penalties . It is a Government order and heads will roll if anybody fails .Families of English players missing a penalty will be shot .

 

no they banned paintball

 

Germany, Europe's reluctant Goliath, is hiding its true strength

Quote:
Everyone agrees: the future of Europe lies in German hands. Berlin is now the de facto capital of the European Union, the place where the crucial decisions are taken. They speak about this shift in Brussels and Paris and certainly in Athens, Rome and Madrid. Everywhere in fact – except Germany.

 

How the German Economy Became a Model

Quote:
It wasn't so long ago that many viewed Germany's economic model as outdated and the country as the "sick man of Europe." These days, however, even the Americans have come to praise parts of it, though they still doubt whether they would be able -- or willing -- to adopt it wholesale.

 

They were burning people in ovens 70 years ago,neo nazis still keep murdering people until this day.That sounds like something worth to envy.

 

Not really, maybe before but now Turkany is not an example of anything. Maybe the southern part yes.

 

As they mention in this great article, Germany has a huge boost from a weak Euro. They are able to maintain such a trade balance in their favor at the expense of other European countries. I do particularly like Germany's emphasis on training from a young age though. Too many Americans are obsessed with college and don't see the value in highly technical/skilled trades. I also like the prevalence of small-mid sized firms. The U.S. is getting a lot of similar types of firms in niche markets that really emphasis their human capital.