Utopia Talk / Politics / I'm with Germany

Paramount Member	Thu Apr 20 07:28:00 Germany defends trade surplus before IMF, World Bank meetings Germany on Thursday pushed back against U.S. criticism of its trade surplus, saying ahead of global finance talks in Washington that nobody could blame Berlin for the competitiveness of 'Made in Germany' products. Economy Minister Brigitte Zypries said the government had only limited influence on trade flows, and the surplus - which data shows hit a record 252 billion euros ($271 billion) in 2016 - was linked to factors beyond its control such as the oil price and euro exchange rate. "Our companies produce high-quality machines and equipment that customers abroad like to buy. We do not have to apologize for this," she told mass-selling Bild newspaper. She pointed to political efforts, such as the introduction of a national minimum wage, tax cuts and increased investment activity to boost domestic demand and imports, as ways of reducing the trade gap. In a U.S. Treasury currency report on Friday, the Trump administration backed away from naming any major trading partner as a currency manipulator, but kept Germany and five others under scrutiny over their foreign exchange and economic policies. http://www...-germany-surplus-idUSKBN17M0WU Maybe if the USA would be better – then USA would be better. But now, Germany is the better. They don't need to apologize. The pink orange child needs to shut it.
Seb Member	Thu Apr 20 07:39:48 Paramount: So you support maintaining low wages and part time jobs - a race to the bottom?
Paramount Member	Thu Apr 20 07:46:44 It is better to have a low wage than no wage. Kids needs to start somewhere, and then work their way up.
Daemon Member	Thu Apr 20 12:15:55 Average UK wage is lower than average German wage. In fact average wage in France, Spain, Greece, Italy, Belgium, Austria is lower, too. http://en....rage_wages_by_European_country
Pillz Member	Thu Apr 20 12:32:15 Well all you've done is list German client states and France.
Seb Member	Thu Apr 20 12:35:54 Daemon: Median, mean or mode?
Seb Member	Thu Apr 20 12:42:23 Also, average wages is not the same as income. E.g. a 50% time job that pays in total 15k a year income counts as an annual wage of 30k. The whole point of the Haartz IV reforms were about holding wages down to gain competitiveness. If you try to globalise that model, it's a race to the bottom.
Daemon Member	Thu Apr 20 13:09:09 "E.g. a 50% time job that pays in total 15k a year income counts as an annual wage of 30k." Doesn't seem to raise competitiveness, hourly wages would still be the same in your example.
Seb Member	Thu Apr 20 13:21:32 Depends - if I get a bunch of people in on part time jobs, as an employer that can be more cost effective than full time employees. They may have lower benefits too by virtue of being part time - which can mislead. BTW, the UK is - for an advanced economy - low wage, but service focused rather than export focused. The difference is the productivity is lower. The thing about the German economy is it manages to let the employer capture most of the benefit of the employees higher productivity, with comparatively less going to the worker. When you add that to the comparatively low value of the Euro compared to what a Germany-only currency would be, you create a strong advantage- but it's relative. It's not something everyone can do - all that would do is leave the world awash with excess savings and nowhere to invest. Investors would chase risk, leading to periodic asset bubbles and boob/bust cycles. I.e. it would export the systemic problems with the Eurozone to the entire world. And it wouldn't even deliver any real advantages because the advantage only occurs if the policy is distinctive. It's a beggar-thy-neighbour policy in the end.
jergul large member	Thu Apr 20 14:55:31 Any evidence that part-time workers are more productive than full time workers? The problem with a export surplus boils down to the disadvantage of accepting scraps of paper in exchange for durable goods.
Seb Member	Thu Apr 20 15:29:03 Jergul: Why should they be? Germany's high productivity isn't because of part time jobs. Yes, the scraps of paper are claims on wealth, not wealth itself. If you pile them up without commensurate imports, then the only other way to recycle them is investment. If the investment opportunities aren't there, problems arise and it can destroy wealth.
Seb Member	Thu Apr 20 15:30:52 Access to part time labour can make companies more competitive, even if the worker is no more productive per hour of work.
jergul large member	Thu Apr 20 16:21:01 http://www...urrent-account-surplus-problem The economist wins thread.
zavyx Member	Thu Apr 20 23:38:01 who the fuck do the IMF think they're talking to; they best sit the fuck down and shut the fuck up; their opinions have as much value as a beer bottle full of gorilla piss. they only exist to sort out crap in the third world, and they should keep their fucking noses out of the business of the first world, useless bunch of pencil pushing anally retentive socially retarded bureaucrats.
zavyx Member	Fri Apr 21 01:20:11 how the fuck do these piss-ant bureaucrats get the idea that Germany needs their advice? They should start by sorting out Africa, and if they can manage that, they might actually earn some credibility, they might prove they do know what the fuck they're talking about - until that day comes, they should shut the fuck and mind their own god damn business.
	show deleted posts

Your Name:
Your Password:
Your Message: