Why does Germany have such a good economy?

[Euro]

ECB holds off to force politicians' hand in crisis

The reforms are tough to accomplish politically because they often mean richer, better run countries — such as Germany — taking on some of the risk for bad behavior by other countries that don't manage their economies or finances well. Or it means governments giving up control over banks or finances. And most would take years to implement. Still, quick decision-making by governments could reassure the markets and help the eurozone step back from the edge.
ECB holds off to force politicians' hand in crisis | Comcast

The Answer:
Since being sworn in as chancellor on November 22nd, 2005, Merkel has led a Grand coalition consisting of the CDU, CSU, and the Social Democratic Party of Germany (SPD), while also continuing her free-market economic agenda and relationship with the United States. She has also been focusing on redesigning the German health care system and tax reform.

When Analysts say the problem is that nations like France, Italy and Greece have reached the limits of how much they can borrow and spend without driving up interest rates to unaffordable levels, leaving them little room to try to stimulate their economies through such conventional measures as tax cuts and increased infrastructure spending.
You just can fix stupid countries!
European voters clear: Austerity won't be tolerated - Washington Times

Germany has no minimum wage as one of few countries. So the job growth the last years is mainly among unskilled workers. Welfare have also been cut, so that it is more proffitable to work than getting welfare.

 

[BakshisMouse]

Germany has no minimum wage as one of few countries. So the job growth the last years is mainly among unskilled workers. Welfare have also been cut, so that it is more proffitable to work than getting welfare.

More or less good policies, especially in times of prosperity. However, this does not fully explain why Germany is not suffering as much as Spain is.

 

[EdwardBaiamonte]

My point was that austerity did not make Germany's economy great.

The Germans obviously disagree which explains why they are urging austerity, i.e., fiscal responsibility on the World.

You too, had better read what I had to say.

The Germans obviously disagree which explains why they are urging austerity, i.e., fiscal responsibility on the World and why Europe wants to be bailed out by Germany with the fruits of German Republican austerity.

 

[KissMy]

Past, present & future orientation of cultures is why Germans produce more than their European counterparts.

[ame="http://www.youtube.com/watch?v=A3oIiH7BLmg"]The Secret Powers of Time[/ame]

 

[Franticfrank]

The Germans obviously disagree which explains why they are urging austerity, i.e., fiscal responsibility on the World and why Europe wants to be bailed out by Germany with the fruits of German Republican austerity.
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Austerity is only there because nobody seems to have a better idea.

 

[Truthseeker420]

Germany has strong Labor Unions.

 

[Euroconservativ]

When you depend so much on foreign markets, crisis hit you harder. And this one will hit Germany hard:

Manufacturing Markit PMI May 2012 (below 50 points shows contraction):

Germany 45.2 (35 month low)
Italy 44.8 (2 month high)
France 44.7 (36 month low)
Greece 43.1 (8 month high)
Spain 42 (36 month low)

Italy and Greece were even in worse condition in previous few months.

According to Markit, Germany shows contraction in export orders for the 11th straight month. It doesn't show yet because german firms have a strong backlog from 2010-2011... but eventually it will.

Germany still exports 50-60% of its production to the European Union.

 

[KissMy]

Germany has strong Labor Unions.

Germans have low wages! Greece had high wages.

 

[Euroconservativ]

Germany has strong Labor Unions.

Germans have low wages! Greece had high wages.

Not low wages but restraint for the last 10 years, which led to a real depreciation of Germany's fixed nominal exchange rate in front of the rest of Eurozone.

 

[BakshisMouse]

The Germans obviously disagree which explains why they are urging austerity, i.e., fiscal responsibility on the World.

You too, had better read what I had to say.

The Germans obviously disagree which explains why they are urging austerity, i.e., fiscal responsibility on the World and why Europe wants to be bailed out by Germany with the fruits of German Republican austerity.

Why did you even respond without even reading what I just said, nitwit?

 

[BakshisMouse]

You too, had better read what I had to say.

The Germans obviously disagree which explains why they are urging austerity, i.e., fiscal responsibility on the World and why Europe wants to be bailed out by Germany with the fruits of German Republican austerity.

Why did you even respond without even reading what I just said, nitwit?

Read carefully:
The deficits that Spain incurred after the financial crisis was the result of the duress of the unraveling of the current Euro currency regime, which gave an advantage to Germany via exchange rates disrupted by capital flows. What I'm saying is that it is not Spain's government fault for not realizing the dangers of so much capital inflow into Spain from Germany! This was the result of the private sector seeing an opportunity in Spain! These capital flows overvalued Spain's wages, leaving them dependent on German exports!

That you blame Spain's crisis on its government rather than Merkel's government is astounding, especially when Spain had balanced budgets in 2006 and 2007, as Merkel's Germany had deficits!

Spain and Germany share the same currency! They just might have to coordinate efforts to save themselves, just like any two states in our American Union can not be vindictive against each other without risking disaster!

 

[EdwardBaiamonte]

They just might have to coordinate efforts to save themselves,

is someone against coordination??????????????????????

The issue is whether you support capitalist coordination or socialist coordination.

 

[EdwardBaiamonte]

What I'm saying is that it is not Spain's government fault for not realizing the dangers of so much capital inflow into Spain from Germany!

well, in theory a government would have to be liberal and stupid at heart not to be alarmed at a 200% increase in real estate prices.

 

[William Joyce]

Something Germans make:

Something Africans make:

More questions?

 

[BakshisMouse]

Something Germans make:

Something Africans make:

More questions?

^^^^

Oh cool! The resident Klansman makes a totally irrelevant point.

By the way, what is your opinion on this book:

[ame=http://www.amazon.com/Guns-Germs-Steel-Fates-Societies/dp/0393061310/ref=sr_1_1?ie=UTF8&qid=1339607047&sr=8-1]Amazon.com: Guns, Germs, and Steel: The Fates of Human Societies (9780393061314): Jared Diamond: Books[/ame]

I have not read it, but I'm familiar with the thesis.

 

[EdwardBaiamonte]

Something Germans make:

Something Africans make:

More questions?

^^^^

Oh cool! The resident Klansman makes a totally irrelevant point.

By the way, what is your opinion on this book:

[ame=http://www.amazon.com/Guns-Germs-Steel-Fates-Societies/dp/0393061310/ref=sr_1_1?ie=UTF8&qid=1339607047&sr=8-1]Amazon.com: Guns, Germs, and Steel: The Fates of Human Societies (9780393061314): Jared Diamond: Books[/ame]

I have not read it, but I'm familiar with the thesis.

well, in theory a government, the Spanish government in this cae, would have to be very liberal and very stupid at heart not to be alarmed at a 200% increase in real estate prices. It must have looked like a free lunch, the only kind a liberal likes.

 

[Franticfrank]

That comparison is totally irrelevant.

 

[usmcstinger]

The Germans obviously disagree which explains why they are urging austerity, i.e., fiscal responsibility on the World and why Europe wants to be bailed out by Germany with the fruits of German Republican austerity.
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Austerity is only there because nobody seems to have a better idea.

There is no better idea. Countries that keep increasing their debt will at some point run out of money. Spain has recently increased it's debt. There is no such thing as good debt.

The US under Obama is running toward the same point.

The stupid Frogs elect a Socialist Leader who will bankrupt their country.