Is the United States whining about an artificially devalued yuan, when its real economic problems have more to do with an undereducated work force and a concomitant lack of jobs? Columnist Jan Dams of Germany’s Die Welt warns that if the United States expects to pull itself out of its economic doldrums, it should follow Germany’s example.
For Die Welt, columnist Jan Dams writes in part:
The reason that this currency adjustment can’t come soon enough for the U.S., and Americans resent Germany’s export success, is a simple one. While America’s economy is growing again, there aren’t any jobs. High U.S. unemployment rates are dampening the mood. “It’s the economy, stupid” is an old adage, the truth of which Barack Obama dreads. For in the upcoming midterm elections on November 4, his Democrats will likely have to reckon with big losses. Some of their bellicose rhetoric is a consequence of that approaching date.
But the problems go much deeper. America’s weakness isn’t due primarily to China’s lack of fair play. It is homemade. The decline of the U.S. auto industry is an eloquent example. Large sectors of the U.S. auto industry are scarcely competitive globally.
For America to emerge from its misery, it isn’t enough to devalue the dollar relative to other currencies. The country, once famous for its extraordinary flexibility, needs to reform its labor market and invest in education as well as infrastructure. Germany, a successful location for industry despite the high costs, demonstrates that it can be done.
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