Don’t Lecture Germans About Dependence on the State!: Financial Times Deutschland, Germany
Feb 4th, 2010 | 7 responses
The backlash against decades of American lecturing of Europe about the evils of state intervention into the free market shows no sign of abating.
This article by columnist Thomas Fricke of Germany’s Financial Times Deutschland provides fresh ammunition for Germans who want their friends in the U.S and Britain to shut up once and for all.
For the Financial Times Deutschland, Thomas Fricke writes in part:
What haven’t we had to listen to from our friends on the other side of the channel and great pond about how we in Germany adhere to the terrible belief that the government might be able to help? What haven’t we heard about how we should watch Americans and British shine with much lower public sector shares of gross domestic product (GDP), as well as much lower debt?
That’s all in the past now. Since the mega-financial crisis broke out, more than a few doubts about the healing powers of the market have been circulating among our friends.
The power of the American state has become involved with banks, placed quasi-public mortgage lenders [Fannie Mae and Freddie Mac] under government conservatorship, become the majority stakeholder of AIG, the world’s largest insurer, and summoned auto-manufacturing CEO’s to tell them what to do. It has also distributed more money to the unemployed and launched economic stimulus packages that make Angela Merkel look like a Swabian housewife.
Now, one could say that this was self-defense – a crisis of the century. But that doesn’t change the end result.
In both the U.K. and the U.S., a higher percentage of the population is employed by the state than in Germany. Meanwhile, George W. Bush contributed to this, with his reform of health insurance for seniors, so that now, this item alone takes up more than 1.5 percent U.S. GDP than in 2000
According to estimates by the Organisation for Economic Cooperation and Development, American government institutions require more money than all 16 European nations combined.
Budget deficits in the U.K. and U.S. are now twice as high as ours. It’s a historic turning point: Following the U.S., the UK has now surpassed Germany in total national debt.
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7 Responses to “Don’t Lecture Germans About Dependence on the State!: Financial Times Deutschland, Germany”
The source of the problem isn't that the advice was wrong. It's that America didn't take its own advice and continued to expand the size and power of government. Relatively slowly under the Republicans, and with increasing rapidity under the Democrats, who took over the power of the purse in January 2007. Anyone care to remember what the economy looked like when they took over Congress?
The only question now is whether the US has the political will to get things back on course, throw out the big tax and spenders, and return/retain money to the private sector where it creates jobs and wealth. Then we can get back to being an example to the Europeans instead of following them down a path to economic ruin.
Meanwhile, voters sent a message from Massachusetts to change course. Instead, Obama and the Democrats appear to have doubled down on loony. An end run to pass ObamaCare and a payoff to one of their special interest groups by forcing the military to legalize homosexuals — is this 'focusing laser-like' on jobs and the economy? Let's ask the Dow.
Ha Ha ha…face it, our socio-economic model is inferior to Germany’s socio-economic model.
Ha ha ha, Social Capitalism is better than Capitalism.
Ha ha ha, Republican voodoo economics is DEFEATED!
Oh the joy of being right and conservatives being wrong.
wake up, you're dreaming again
Absolutely not. You are just wrong.
…and how does it feel to be wrong?
Reagan = …”government is the problem”
Tell that to Germany. They are laughing at us as they retire at 58 and their economy BETTER THAN OURS!
lol
Be Free…..Free from capitalist oppression!
http://www.youtube.com/watch?v=s2IaFaJrmno
Germany is better off right now because of their regulatory system. Unlike the US, they kept their bank regulations in the 90's 00's and are planning more regulations. Not only did government do its share of regulation, but some manufacturing corps refused to jump into risk markets. Those companies are still in the black and have not had to layoff workers.