The article “Vorsprung Durch Exports”, translated “Advance Through Exports” was published online in the “Economist” on Feb 3rd 2011 from their print edition. The author who is not named concentrates on the economic performance of the G7 member countries, mainly on Germany. Compared to the other countries of the G7, Germany is the best performer of the last decade. With a GDP expansion rate of 3.6% Germany put itself ahead of most other rich countries, including the United States. Furthermore, the author covers the growth of Germany’s GDP per person compared to that of the United States. It also contrasts unemployment rates of East Berlin and California. Other major points mentioned in the article include Germany’s healthy and conservative …show more content…
This is all transferred to the government. All taxes and insurances are mandatory except for the church tax, which covers eight percent of the monthly income. However, if a resident of Germany doesn’t want to pay church taxes he has to do is resign from his church. The negative effect on that decision is that somebody who is not a member of a church and who is not paying church taxes can’t get their children baptized. Germany’s majority is Christian and this decision will negatively influence their life.
In my assumption, the only reason Germany can show such growth in GDP is because the country is taking too much advantage of their social structure. After World War II, Germany built a social structure, which includes national health care for everyone, unemployment payments for everyone and social security payments. As my father as an economist always says: The game is still the same, but the rules have changed dramatically. The retirement age was extended from fifty-five to sixty-seven, health insurance needs extra fees for a doctor’s visit and unemployment payments are limited to sixty-seven percent of a calculated twelve-month average income for the first twelve months. After the 12th month the government supports their residents in a subsistence level.
This brings me to the decreased unemployment rate
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As one determinant of GDP is exports, it is relevant to discuss the matter with relevance to the UK and Germany. As mention in the literature review, during 1955-1960 exports in Germany
The political, economical, and social order of the Germanic states in the nineteenth century was in a state of chaos and disarray. Politically, the states had the desire of becoming unified and had the possibility to do so if it had not been for fear and neglect to follow through. Economically, the states were in a time of hardships with poor growth development in the fields and were also going through the time of the Industrial Revolution with changes to their everyday lives. Socially, the Germanic states were divided into a feudal system that was determined by birth status and wealth. The middle class, made up of scholars and students, and aristocracy had shared the same fear of the commoners’ revolt due
Firstly, we must proceed to explain the nature of Article 231 in order to be able to analyse its judgement about Germany's responsibility for the war. After the war had ended, Europe's, especially France's economy was devastated. There was also a general desire for such a war never to repeat itself, as the first proof of modern warfare proved to be ruinous. To deal with this two issues the allied powers made Germany sign the "war guilt clause" which made it accept all the guilt for the war and because of this, pay reparations to the affected states. In this way France's economy would theoretically recover faster while Germany was kept economically weak so it could never attempt to cause a war again.
When it comes to death, Germans own the highest rate of dying. They are required by law to purchase a coffin even if their loved one's are cremated. Over fifty percent of the German population is cremated to avoid burial services. Those who chose to be buried are only allowed to “rest” in cemeteries for ten to thirty years due to space limitations. Healthcare in Germany is only a bit different from American Healthcare. German Residents are required to belong to a sickness fund, and insurance companies are required to accept them. The residents pay half of the sickness fund costs, and employers pay the other half. There is also a limitation on out of pocket expenses, so it’s almost impossible for Germans to be in debt from any medical bills.
To begin with, Germany is a highly advanced country and most of their workers are very high skilled and the current lower-skilled labor market is on a decline and is need of low skill workers. Many refugees moving to Germany will take up any position to support themselves or their families, and those that move tend to be a part of the lower educated or lower skilled level. Providing these people with these kinds of jobs will boost the economy because it will help many companies grow as well as help pay for welfare systems and increase the current small workforce in the country. With a larger workforce, more people will begin to pay taxes in order to help build schools and better roads, allowing for increased growth and greater affluence. Moreover, high skill workers wages will go up because of the influx of low-skill workers, which seems like a win-win
Germany’s health care system pays for not only healthcare basics but also dental, optical, mental health. They will also pay for alternative therapies like homeopathy, to go to a spa, and more. The healthcare system is highly accepted by the German population. Pregnant women pay nothing for their care, while most Germans have a co-pay of $15 dollars once every 3 months for their doctor visits (Saul, 2014).
Germany, a country rich in culture and heritage, yet plagued by the fallout of World War I and World War II, has progressed to become the centerpiece of the European Union and the world’s third richest economy. The first German Empire dates back to the Roman Empire starting in the 8th century AD. During the Middle Ages the German Empire fended off many attacks against their soil from the Hungarians and the Slavs. Fighting and power struggles continued until the 1400’s, when the modern world gradually came into existence with intellectual, economic and political changes.
Before the war, Germany was actually amidst a period of economic success. The rivalry of feuding neighboring princes who engaged in the Protestant vs Catholic battle fueled the national economy in trade and industry. Yet, post Thirty Years’ War, we see financial limitations on a regional and national level, from the studies and collections of 17th century wages in Germany from Moritz J. Elsass. Inama Sternegg stated the population decline in the Holy Roman Empire throughout the Thirty Years’ War was about two-thirds. Urban populations took to the economic decline the hardest. Magdeburg shrunk in population by 96% (Rabb). There were no gains in population or economic prosperity, mainly losses and at best stagnation. Nowhere did the Holy Roman Empire benefit from the Thirty Years’ War. The population decline was the panic button, where the big trouble hits when citizens cannot even continue to live in these environments. Poverty was a plague that spread throughout the Holy Roman Empire, and was a key factor in the Holy Roman Empire’s disintegration and ultimate
Jens George Reich stated, “People imagine the reunification will be the answer to all their dreams.” While reunification marked the official end of communism within Germany, in reality problems were arising from the processes that were unexpected by the people of Germany. The reunification was implemented ineffectively by incompetent management amidst unfavourable economic and social circumstances which resulted in political, economic and social consequences as problems associated with the East far outweighed the advantages that could be provided by the West. Indeed, German citizens dreamed that the West could provide a degree of peace and economic stability that would reinforce a cohesive German identity.
German sickness funds are required to be financially self - sufficient and premiums are set as a percentage of annual income. The percentage varies from fund to fund with 13% being the average. The premiums are deducted from pay packets with employers and employees paying half each. As of 2004 the Germans enacted co pays into their healthcare system. This involves Germans having to pay 10 Euro ( per quarter, every 3 months ) to see a GP, 10 Euro per day as a co pay in hospital with a max of 28 days and 10 % for drug prescriptions not exceeding 10 Euros … but total annual co pays never exceed 1 % of a German’s yearly income("Sick Around The," n.d.). Examples of this, in relatable examples, would be an individual making 60,000 dollars per year would pay 600.00 per month for health insurance, half of that 600.00 is picked up by their employer. (this is the max any one individual pays in the social insurance program. ) An individual making 20,000 per year will pay 250.00 per month, again half of which their employer pays. This covers all non-working members of their family. If a married couple are both working they both must contribute to the social insurance program individually, or opt to purchase private health insurance.
Germany does not rely on a single source of revenue. The statutory funds also referred as the sickness fund covers about 90% of the populations. The rest of the population (10%) purchase their own private health insurance. Contributions to the healthcare funds, which are based on income are made by both employers and employees. Germany has some 180 statutory health insurance funds, and they account for approximately 70 percent of the health system’s revenue (McKinsey, 2010).
GDP per capita is also an important indicator of economic health. GDP per capita takes the total output of a country and divides it by the number of people in a countries population; this indicated the buying power of individuals. GDP per capita in Germany as reported for 2014 was slightly over 47,000 USD (“Countries with the largest”, n.d.). Looking at GDP per capita when compared to other countries in the Eurozone Germany is not fairing so well. Luxembourg leads the world wide GDP per capita and that of the Eurozone with a high rate of 116,750 USD (“Countries with the largest”, n.d.). Worldwide Germany ranks 16th in the Eurozone, Germany was beat out by Austria, Finland, Ireland, Luxembourg and the Netherlands in GDP per capita (“Countries with the largest”, n.d.). While the GDP per capita rate in Germany is stronger than many other countries it is not competitive with other countries which have economies comparable in size to Germany nor economies centrally located in the Eurozone.
As it began, our century drew to a close, with Germany once again the economic powerhouse and political hub of Europe. What is remarkable is how quickly this happened, how unbidden and unanticipated: the toppling of the Berlin Wall in November 1989; the reunification a year later; the collapse of the Soviet Union and the end of the Cold War in late December 1991; a resurgent impetus to West European integration in 1992; and NATO enlargement, which was consecrated in April 1999. Unquestionably, this chain of events has profoundly affected Germany’s situation over the past decades. For the first time since the establishment of the Federal Republic of Germany (FRG) in 1949 and the painstaking process of
Trade imbalances. Appendix Table 2 shows that from 1999 to 2007, German unit labor costs fell by five percent, while these costs rose by 20 percent in Greece, 41 percent in Ireland, 19 percent in Italy, 22 percent in Portugal and 28 percent in Spain. These competitiveness gaps offered Germany a huge advantage in the trade, making it a better public