How Germany got it right on the economy @ Washington Post…
Germany’s economy is the strongest in the world. Its trade balance – the value of its exports over its imports – is second only to China’s, which is all the more remarkable since Germany is home to just 82 million people. Its 7.5 percent unemployment rate – two percentage points below ours – is lower than at any time since right after reunification. Growth is robust, and real wages are rising.
It’s quite a turnabout for an economy that American and British bankers and economists derided for years as the sick man of Europe. German banks, they insisted, were too cautious and locally focused, while the German economy needed to slim down its manufacturing sector and beef up finance.
Wisely, the Germans declined the advice. Manufacturing still accounts for nearly a quarter of the German economy; it is just 11 percent of the British and U.S. economies (one reason the United States and Britain are struggling to boost their exports). Nor have German firms been slashing wages and off-shoring – the American way of keeping competitive – to maintain profits.
One key to Germany’s miracle is the mittelstand, as the family-owned small and mid-size manufacturing firms that dominate the economy are known.
…Mixing social democratic values with Jimmy Stewart localism, Germany’s economy is running rings around America’s. “What we have here is stakeholder capitalism, not shareholder capitalism,” says Hubner. And like most mittelstand owners, he adds: “I live where my company is located. I want a good image in the town I live in.”
On a related note, we are seeing more and more customers from Germany and more reseller inquiries from Germany lately too.
Have an amazing project to share? Join the SHOW-AND-TELL every Wednesday night at 7:30pm ET on Google+ Hangouts.
Join us every Wednesday night at 8pm ET for Ask an Engineer!
Learn resistor values with Mho’s Resistance or get the best electronics calculator for engineers “Circuit Playground” – Adafruit’s Apps!
Maker Business — Samsung & Batteries
Wearables — Award winning shield
Electronics — Here’s the deal with BJT power
Biohacking — Microbes in the Mansion: US Presidents and their Bacteria
Sorry, the comment form is closed at this time.