The downsides of German growth

I think that this article stating that the Germans don't consume enough is absolutely rubbish. With the worlds resources running out, all some economists can say is that we have to buy more to solve our economic problems. In 40 or so years time when our only resources are the piles of rubbish and the earth has been turned into a dump, I would like to hear how our clever economists plan to keep the economy going!

" They wanted to be like the Germans, but not to behave like the Germans."

This is the crux of the matter.If you want to have results without following the same guidelines,you will fail.
I agree with Karel on that one.

It looks to me as though Germany is seen as a kind of crutch, and a milch cow, for the rest of Europe. By using a rather grotesque inversion of common sense this fellow, Tilford, spokesman for various unspecified European states, is arguing that Germany is doing the wrong thing in being industrious, in being frugal, in seeking to enlarge its economic pie in the face of Chinese competition and the lagging effects of the GFC, because the rest of Europe, including, one assumes, the economic and financial powerhouses of the UK, France, Spain and Italy, have no hope of keeping up and it is Germany's duty to do everything within its power to prop them up, forever and a day one assumes.

I don't like saying this, and I'm defiinitely not one for saying God Save Germany, but just imagine if Germany were to suddenly disappear into the ether - you'd all be down the gurgler in no time. Maybe everyone else in Europe ought to start being a bit more like the Germans and cut the bellyaching!

Jeez, its just not true. Germany is still the growth engine of Europe and the Czech economy is still benefitting from Germans buying Skodas like there is no tomorrow. What does harm Czech exports is the strong Czech Crown currency! Krugman & Soros have their view but its only an American view - its the perspective of Krugman an American who believes Germany should run up further debt and that this would solve everything and Soros, who is one of the billionaires who would like to bring down the Euro.

The article "The downside of German growth" contradicts itself and the criticism is not justified, especially from the British or Czech perspective.

1. The table on the Czech Republic's trade surplus over the last five years shows a steady increase of the surplus for the Czech Republic. This year it will touch a record CZK 200B.

2. German growth means more exports to Germany and beyond even if consumer demand in Germany is not increasing at the same pace. The German industry buys goods for its export oriented industries. The EU is benefiting from the high quality products produced in Germany and sold to the world. The Czech Republic more than most others. Slovakia, Hungary, Austria or Switzerland equally so.

3. To criticise Germanys current tight fiscal policy, especially from a Czech or British perspective, is particularly strange. The measures by the current Czech government are the most drastic I have ever encountered. Germany would have never stopped all infrastructure projects overnight as is currently the case in the Czech Republic. The policy of not investing in the still fairly underdeveloped road and rail network that is the basis of a modern economy is in fact a fiscal nightmare and money saved in the wrong area. Britain is currently also following a similarly radical fiscal regime. The US has been approaching this differently, but due to its overall importance and strenght it can afford things that Germany and Britain cannot.

4. Germany, like all European countries, needs to overcome its oversized social security system and the problem of an aging population. However, there is no way around the current tight fiscal regime, at least within reason. Anyway, without the strenght of the successful export oriented German economy, Britain's economy would be worse off while the Czech Republic would have never even come close to the ongoing economic miracle of the last 20 years.

Reports in the press indicate a possible Czech entry into the euro around 2015/2016. This was before the 'Greek senario' and the fragile world economic recovery. The 'low wages' in the German economy are a worker response to recession, rather to have some income than none. As the Lisbon Treaty reaches the dreaded 'banking debates' watch for fireworks from the U.K. and C.R. To ask the C.R to devalue its currency and any suggested ficscal controls from Brussels to London may well be met with reminders of Greek accountancy which was swallowed, hook , line, and sinker.

" In 40 or so years time when our only resources are the piles of rubbish and the earth has been turned into a dump,..."

Here we go! Fear mongering is on the rise again.
Several times in last two centuries "experts" predicted that earth can't support the population as is and/or as it will be.
There is not enough ,food,energy or water to feed all of us, they said.
There was less than billion peoples living on Earth two hundred years ago.
Today,there is over six billions of people living.The quality of life for majority of them is far greater then it was two century ago.They live far longer lives.Their health is is better.
The means of producing food is enormous(let's forget for the moment the question of liking or disliking mass production).
Not even one one ton of metals extracted from earth is lost.
It all is still present in one form or other.Increased levels of recycling will return these metals into reuse.
You don't like transformation of raw materials into refined metals,chemical products,and other man transformed materials?
Don't use then cars,computers,eating utensils,trains,shoes,clothes,etc.
You can go back to heavenly Eden, walk over ther nude and be "happy" and alone for ever.
Humanity will go on-unless they kill each other as they tried many times over in the past and are still trying for ideologies such as as the one I am replying to.