The Commerce Department's report released today shows the recovery lost it's mojo in the second quarter as growth slowed to a 2.4 percent crawl, the most sluggish showing in nearly a year and too weak to drive down unemployment. Weaker spending by consumers, less growth coming from companies restocking depleted stockpiles, and a bigger drag from the nation's trade deficits were the main factors behind the second quarter's slowdown. Germany consumers, meanwhile, are, according to today's Financial Times, "less worried about unemployment at any time in the last two years, triggering a surge in consumer confidence." The reason? In Germany unions are so strong that the law requires 50% of the members of the boards of directors of every German corporation be made up of union folks. Therefore, instead of laying people off, during the recession, German companies only slightly cut back worker hours, and the German government sent checks to make of the difference. Thus spending niver stopped, demand remained strong and their economy is recovering quickly.
"Renaissance Thinking About the Issues of Our Day"
Comments
I was reading that Merkel thinks Obamas borrowing spending habits are loony.
I agree with her.
I saw an economic report on Germany last night. Siemens had orders for several billion bucks worth of electricity wind generators in the last quarter. Green technologies are a high source of employment in Germany. Of course, Germany doesn't have an oil lobby to contend with. .
.The Germans didn't dismantle their productive capacities...they are profiting from them....and hire Germans....not Chinese. The U.S. threw away what it took 150 years to develop....the greatest productive capacity the world had ever seen.
The German approach to an economic downturn system makes more sense. than ours..Share the work and maintain consumer demand income with a subsidy...rather than tossing millions into unemployment and having reduced consumer demand income at a higher cost..
Retired Monk - "Ideology is a disease".
I was reading that Merkel thinks Obamas borrowing spending habits are loony.
I agree with her.
Of course she thinks its insane how much Obama borrows, because Germany itself wouldn't find itself in such a scenario.
Do you even understand how these things work? Germany doesn't have to borrow like America because it generates alot more in tax revenue. Additionally it doesn't spend billions a month on Defense.
Now Mr. Right Wing Conservative man, would like to replicate Germany?
Of course she thinks its insane how much Obama borrows, because Germany itself wouldn't find itself in such a scenario.
I think we might visit Germany next year as it looks like a great place to see. Do I want to replicate Germany as a whole? Nope. Maybe just parts of Germany. Never have liked the German accent though. Sounds kind of gutteral.
[/quote]
There is ONE BIG difference between Germany and the US.
Germany isn't spending TRILLIONS OF DOLLARS(Reichmarks) on ILLEGAL UNJUST WARS AND OCCUPATIONS!
Germany has a government that represents THE PEOPLE not just the rich and the mutinational corportations.
Germany is a democracy, the US is a corportocracy and a plutocracy not a "democracy".
Slab, you do realize that the USA spends more on DEFENSE than every other developed nation COMBINED, don't you?
The primary reason Germany manufactures such high quality products is because they have MUCH stricter standards (regulations) than American companies. They also pay MUCH higher wages to their employees. Unions are strong, and the work environment is unparalleled.
How could an American company which pays meager wages, (in comparison) or outsources its manufacturing to third world countries even begin to compete?
Do a little research, expand your mind. Why do you want to live in a world the size of a pea?
Slab, you do realize that the USA spends more on DEFENSE than every other developed nation COMBINED, don't you?
How could an American company which pays meager wages, (in comparison) or outsources its manufacturing to third world countries even begin to comete?
Do a little research, expand your mind. Why do you want to live in a world the size of a pea?
The BMW manufacturing plant in Spartanburg SC is....is....NON UNION!!!!!! and they hire temp workers!!!!!! http://www.bmwusfactory.com/#/manufacturing/1932/
I believe It starts with a good design. Standards of production must be high. BMW has obviously found that non-union workforces in the U.S. works for them. They are expanding and hiring in SC.
You may now feel free to hate that German company as they are now...evil corporate greed monsters.
Do a little research (LOL!), expand your mind (hmmmm...). Why do you want to live in a world you know nothing about?
Mel, I'm almost certain that you've done a little research on Volkswagon. They just moved their manufacturing plant out of Pittsburg and sent over a Billion dollars worth of MFG to Chattanooga Tennessee!!! and...........ITS A NON UNION SHOP!!!!!!!!!! Getting away from the UAW seems to be a German car company plan for success.
Shit!!!!!
Mercedes has a huge manufacturing plant in.......ALABAMA!!!!! I hate it when that happens!!
Here's a little research project for ya....is it a union shop??
I could keep going and going and going.....in my world "the size of a pea".
Slab, make note that the engineering of German products is done in Germany...not in the U.S. or China. I'd suggest a first rate educational system..., well funded..., has something to do with it.
Conservatives in Germany, like the Conserva Dems and Repugnants in the U.S. are aiming at austerity programs to pay for their bails of finance. It will depress the German economy...and reduce tax revenues. Deficits will go up...not down.
Same with Greece. Tax revenues will plunge from a further depressed economy. Ditto the U.S., Tax revenues will plunge by further depressing consumer demand. Income from sales taxes will further decline. The states will rush into insolvency this year.
Colorado is projecting a billion dollar unconstitutional short-fall. and has to make cuts to remain solvent and abide by its constitution. Some school districts are seriously contemplating reducing the school-year by 3 months for lack of funding. Perhaps next year, they'll just eliminate education completely.
The nation is in melt-down. Strangling the employer of last resort...government...is suicide. Ditto austerity programs.
Austerity.???.....when in the words of FDR : "Yet our distress comes from no failure of substance. We are stricken by no plague of locusts. Compared with the perils which our forefathers conquered because they believed and were not afraid, we have still much to be thankful for. Nature still offers her bounty and human efforts have multiplied it. Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply. Primarily this is because the rulers of the exchange of mankind’s goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men."
Somehow, austerity is supposed to make sense...when the means for prosperity exist. The "money changers"...banksters... demand austerity for others...to feed opulant prosperity for themselves.. Chicago School Economic Theory supports that....and its economics turned upside down.
Retired Monk - "Ideology is a disease"
.
Slab, make note that the engineering of German products is done in Germany...not in the U.S. or China. I'd suggest a first rate educational system..., well funded..., has something to do with it.
I believe she was touting the greatness of the unions and wages paid in German manufacturing and THAT is why Germans make better cars. I was the one who stated that it starts with a better design. Do I need to paste the quotes for you? OK...what the hell...
Mel opines:
The primary reason Germany manufactures such high quality products is because they have MUCH stricter standards (regulations) than American companies. They also pay MUCH higher wages to their employees. Unions are strong, and the work environment is unparalleled.
How could an American company which pays meager wages, (in comparison) or outsources its manufacturing to third world countries even begin to compete?
"Primary reason" is a pretty bold claim. I read that wages at the BMW plant are right about $11/hour. Hmmmm.....Taco Bell in Redmond starts at $12. And then there's the "outsourcing" and "meager wages" dribble. Any luck finding a union in any German manufacturing in this country? Ever wonder why???
You do realize that Austria and Germany's trade union density is dramatically SHRINKING over the last 40 years?.....don't you? http://www.eurofound.europa.eu/eiro/studies/tn0901028s/tn0901028s_2.htm
But Mel states that "unions are strong" in Germany, yet they outsource production and purposely avoid the UAW. Ever wonder why?
Here's a brain tickler. Why are sales of German luxery cars up in America and down in western Europe? Anyone....anyone?
It seems all of those poor broke unemployed Americans that are on the verge of collapse buy more expensive German cars than Germans do. Gosh, with all of the high wages in Germany, one would think they would be their own best customer. Yet....they aren't.
I like Geraman cars. I'm a supporter of them and a customer. I think their designs and engineering are unique. My wifes Lexus is actually a better car in my opinion, but it's kinda boring for my taste.