The German economy is rapidly improving, with many manufacturers struggling to keep up with demand. But not all are happy with the country’s recovery. Many say that Germany’s export gains are coming at the expense of its trading partners.
Only a year ago, the German company Getrag was on the brink of bankruptcy. An auto parts supplier based in southwestern Germany, the company had been hit hard by the economic crisis. Revenues had dropped by 25 percent, to about €2 billion ($2.45 billion), and the company was forced to reduce its workers’ hours under the government’s “short work” program. Only a state loan guarantee saved Getrag from falling victim to the crisis.
Today the company is inundated with orders. BMW alone orders 140 transmissions a day, even through Getrag can only manage 120 per day. “Week after week, I sign requests by the company to have its employees work on Saturdays, Sundays and holidays,” says Frank Iwer of the district office of the metalworkers’ union IG Metall in the southwestern state of Baden-Württemberg. Iwer is familiar with many cases like Getrag’s: the machine builder that is hiring large numbers of new workers; the manufacturer of packaging machines that has retrieved almost all of its employees from the “short work” program; the small supplier that rehired all 24 workers it had recently laid off because the business climate unexpectedly improved.
[...]
For decades, the Germans were admired around the world for their export industry and high-quality products. Now, that has changed. Now, Germany is seen as an egoist who refuses to play by the rules. Once a role model, Germany is now the global bogeyman.
Leading the charge are US President Barack Obama and Treasury Secretary Timothy Geithner. They are supported by Paul Krugman, the Nobel laureate in economics, and billionaire George Soros, who cultivates the self-image of the enlightened speculator. They are all calling on countries like Germany to abandon their thrifty policies and launch new economic stimulus programs.
“not all are happy with the country’s recovery. Many say that Germany’s export gains are coming at the expense of its trading partners.”
Ahhh… there it is, in the Euroweenie mind, all countries must be equal. Everything must be equal. That’s the whole purpose of yet another Euroweenie experiment to socially engineer behaviour NOT for equal opportunity but for equal outcomes. This time they even went so far as to make a Faustian deal with their own sovereignty by handing it over to unelected apparatchiks in Brussels.
Yet again, the grand plan isn’t working because Germany stopped playing along with this inanity. Spiegel says “Once a (social engineering) role model, Germany is now the global bogeyman. Leading the charge are US President Barack Obama (the Nobel Prize winner) and Treasury Secretary Timothy Geithner. They are supported by Paul Krugman, the (New York Times) Nobel laureate in economics, and billionaire George Soros, who cultivates the self-image of the enlightened speculator. They are all calling on countries like Germany to abandon their thrifty policies and launch new economic stimulus programs.”
That Speigel “gets it” is reassuring. Meanwhile the Nobel Prize winners, Obama and Krugman, are like Thelma and Louise; driving over the abyss into the chasm of unintended consequences.
Shouldn’t that be intended consequences Nom?
Ward, you’re right, the consequences of their social engineering can be predicted; they’ll be a harmful cascade of distortions.
These progressives continue to repeat Fannie/Freddie types of moral hazards now set loose on Obamacare, Wall St and Community banks. They don’t even read their own bills before launching them. While undoubtedly some “progressives” genuinely believe they are building a better society, the elitists driving this are simply in it to control. The elitists, in Washington or Brussels, don’t really care about the consequences as long as they achieve control. Ditto our Liberals; they don’t care where they lead us as long as they’re in power.
Good for BMW that it can t keep up with sales demands. Anyone want to venture a guess as to who the clients are question mark. Let me guess, banksters, their friends and relatives.
still, i m not ANTI-business, just and only unethical, legalized robbery business. how s that!
Capitalism could replace socialism under the right circumstances and decisions.
Maybe Cassie is a nomdeMerkle? The WSJ says about Merkle:
“She has mastered the virtue of endurance, which often infuriates her opponents. She knows that what counts are not smoke and mirrors and pretty words, but figures, data, facts. And they are on her side.”
But although Merkle’s pick for President finally won in the 3rd round today according to the UK Tele:
“The German Chancellor’s authority had been dealt a blow by a rebellion within her coalition government that twice rejected her candidate to become the country’s president. Mrs Merkel was hoping for a clear victory in the presidential contest after being hit by a popular backlash over bailouts of Greece and the euro zone that have presented German taxpayers will a bill of over £100 billion”
So what will this mean? A Tilt further to the right or appease the left? It’s hard to read given the signal about the guy who almost won?
“ the opposition delivered something of a coup by proposing Gauck, 70, a charismatic theologian who describes himself as a ‘leftwing liberal conservative’ who held appeal across party lines.”
We think our politics is muddled, they almost elected “ a charismatic theologian leftwing liberal conservative” as President in 2010.