Germany no longer Wunderland..says top man.

Sep 23, 2014 8 Replies

formatting link



"When Fratzscher, the head of the German Institute for Economic Research, gives a talk these days, he likes to pose a question to his audience: "Which country is this?" He then describes a place that has seen less growth than the average among euro-zone countries since the turn of the millenium, where productivity has only increased slightly and where two out of three employees earn less today than they did in 2000.



Fratzscher usually doesn't have to wait long before people begin raising their hands. "Portugal," one person offers; "Italy," says another; "France," exclaims a third. The economist allows his audience to continue searching for the right answer, until, with a triumphant smile, he announces the answer. The country he is looking for, the one with the weak economic results, is Germany."



Also interesting:

"In May, BASF CEO Kurt Bock announced a new ?1 billion investment, the largest in company history, on the American Gulf Coast. In explaining the decision, the executive noted that natural gas in the United States costs only a third of what it does in Germany."

Well its all relative and also it depends on the viewpoint of what is good. Economies that go berserk tend to go from boom to bust and that is not good either. Brian

John Rumm wrote

It's even cheaper in Saudi.

It is indeed.

If heaven exists but the streets were downgraded to silver from gold, would you not wish to go there?

How ironic when natural gas prices are fixed by Russia aka USSR!

And relatively low growth can, of course, be a good thing. And the real wage figure was distorted (happily, IMO) by a dip in bonuses (and bonus culture) in 2013.

Not sure who his audience was.

"two out of three employees earn less today than they did in 2000."

You're claiming this is because of bonuses? I'd like to see you elaborate.

I believe it is a natural consequence of free trade and the need to compete against cheaper international labour.

It is an absolutely core issue for anyone in a affluent country to consider. How to distribute wealth fairly when most workers can no longer command a good wage. Doing it by wealth and earning taxes is problematic.

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required