Can Germany be served as a model for U.S?
There are different types of capitalism- What we need and what we can build is a capitalism more attuned to the national concerns. Larry Summers, President Obama’s senior economic adviser. I quote, ‘’ Those who just as in the 1930s tried to learn the lesson that market capitalism didn’t work and needed to be replaced with an entirely different model.’’ Germany is the world's leaders in exports. Why? Why is not America?
Why did the government of U.S provided easy refinancing? There are too many questions popping in my head. My opinion is that maybe since the 11th of September, Americans lost confidence in the economy, in their country, they no longer felt safe anymore. What could make them forget their actual hurries and worries? Money... Maybe,the government of the United States dealt in toxic debts with no collateral securities and made refinancing easy to make people have money easily and regain confidence in the economy again and spend/ overspend like they used to do!Well that's a personal observation!
Reagan-Thatcher favored finance over domestic manufacturing. The outcome is now a negative balance of trade with a business community less and less attuned to its concerns with America’s productivity. A business community less concerned with America’s productive capacity. America opted for Finance while Germany in production.
Germany has favored domestic manufacturing and the social aspects over finance. It didn’t succumb to the financialisation that swept UK and Britain and raised their capital earning and banks rather than market.
Why can't Germany be used as a model for United States? I will be delighted to have views and opinions on that subject that really passionates me!
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The first time I read your post, I was wondering if Germany is the real top exporting country. Yes it is, at least for the moment. Ger $1, 354000 while US $1, 148000. It is not that much of a big gap for a country that has prioritised production. But can we really make Germany a model with only the export index? Model as such does not exist. It is just assumptions that economist put in place to show their thoughts or research conclusions. Every model starts with assume that... In the real world there is no assumption. As such Germany and USA are not homogeneous. A policy may be working well in one country while it may fails in the other.
ReplyDeleteYes! Agreed! But we are not really just talking in terms of the export index. Of course not. Why did America only focus on the financial sector? I find that Germany is more technologically wise! They produce at lower costs and the profits are shared among entrepreneurs and also for social benefits. They do not just speculate like America. I just find these two countries' economy really interesting! And thanks for sharing Ashfaq!
ReplyDeleteIt’s good to feel inspired by something but it’s better to improve and innovate rather than just copying!
ReplyDeleteI added my views on that subject. Waiting and welcoming yours!
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ReplyDeleteGermany is deemed to be the world’s top waste recycler. Its citizens have to properly sort their trash using different bins. There are bins for plastics, bins for paper, bins for green waste and bins for biological-waste. If someone wrongly sorts his trash and gets caught, he will receive a note or even a fine from his area’s waste management company. It estimated that Germany recycles about 75 % of its waste. Whereas, according to the U.S. Environmental Protection Agency, Americans recycle only about 30 % of their waste. As far as waste recycling is concerned, it’s obvious that Germany can serve as a role model for the U.S.
ReplyDelete“Some people say no one likes to separate their trash as much as Germans - even troops stationed in Afghanistan are reported to separate their rubbish.”
Source of quote: http://www.dw-world.de/dw/article/0,,2483251,00.html