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Thursday, September 16, 2010

The German miracle and Keynes

Looks like the Germans did economic recovery right, too. Although the brain-dead American media plays right-wing fairy tales about German "austerity," in fact, according to Der Spiegel, which called it "a Keynesian success story," they didn't hesitate to pump a lot of money into the economy when the crisis hit. They also devised policies -- sometimes called "work-sharing" -- to help companies retain workers at moderately reduced hours and pay and minimize the impact of a downturn on jobs. Today, German unemployment (as measured in the same way as the U.S. does it) is at 7.0%.

Germany continues to be a manufacturing and export powerhouse, and has embraced green energy with a vengeance. We could learn a lot, although, I know, we don't stoop to learn anything from other countries, especially not from those socialists in Europe.

1 Comments:

Blogger marketingace said...

Not only did the German's deploy aggressive monetary and fiscal policy to get out of the recession, they waited until they were completely recovered to deploy any budget austerity. Thus, the myths spun by the Republican bankrolled media about austerity being the medicine of recovery is false for this recovery and has been false in every other recovery.
An excellent case in point is the austeriy Republicans imposed on FDR in 1938 which killed a four year recovery (GDP grew an average of 10% from 1934-38)and plunged the economy back into a depression.

2:12 AM  

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