GlobeTracker| The Economist explains how Germany’s economy has recovered from it “savage recession”, expanding by 3.6% last year. Unemployment it at its lowest since 1992 and prosperity high. Germany — which would be called a socialist welfare state by the Tea Party — has kep its public finances under control.
Angela Merkel’s leadership and the financial policies of her government have encouraged exports. The Economist writes that Germany has not lost its share of world exports against the growth of China.
Unlike American corporations who have dumped workers, Germany held onto them and have the resources to rev up quickly again.
Germany has continued to make things of value, rather than move all manufacturing out of the country, betting that American workers would now join a service economy.
One must acknowledge the relevance of the Eastern bloc countries being so close, but the US is close to Mexico. German domestic demand remains too low, and there is much work to be done. But it’s worth noting that the European countries