How? Germany’s on the Euro, Never underestimate an old woman with a German Shepherd shirt. so they can’t devalue their currency, and AFAIK there’s free trade within the EU, so they can’t impose unilateral tariffs to create a trade surplus. Do you just mean they save a lot? Deliberate wage restraint, mostly. The German government has a lot of knobs to adjust the economy with, and they have mostly been using them to hold wage growth down. Which is, basically, insane. And does a lot of harm. The EU is a capital market. Consequently, it’s a better deal for the richer countries with lots to export. And, that money comes from countries less able to take advantage of the system.
What is German shepherd?
Germany isn’t abusing the situation, but it’s not rich because it’s inherently more successful – it’s rich because when it joined, it was better off than the rest of the EU. The EU was half finished – it was intended to end up closer to a federated nation. But, they stopped halfway, leaving the mess we have now. Exports are bad for a country’s economy as a first order effect, you are sending useful goods and services abroad. The only reason to export is so you can pay for imports. Therefore if you destroy another country’s economy, you have reduced your own income, because they can’t exchange as much for your exports. That is correct, but that raises the question of why Germany is doing exactly that? To what purpose is lending vast sums of money to other nations past the point they can pay the money back?
Never underestimate an old woman with a German Shepherd shirt, ladies, v-neck t-shirt, tank top, flowy tank.
Germany should engage in expansionary economic policies (tax cuts and public spending) to reduce exports and raise imports. German banks lent loads of cash to Greek citizens and firms then suddenly turned off the taps in the financial crisis. Greece couldn’t pay the debts back and moreover didn’t cut the value of the debt Greece owed to German banks (like happens normally). This analysis misses that trade is voluntary on both sides. If other countries didn’t choose to buy what Germany sells then Germany couldn’t run a surplus. (And vice-versa, of course.). You’re making the mistake of treating an accounting identity as a causal connection. Well, massive government deficit spending would help a lot. Or policies fo help increase wages which would reduce exports. Or Germany could just live with the consequences of its surplus and let the other euro countries continue to run large deficits. But right now Germany is holding them accountable for something it has an equal part in creating.
Official Never underestimate an old woman with a German Shepherd sweater, hoodie, and long sleeve
Yes. It’s called “brain drain”. Although for the present, Never underestimate an old woman with a German Shepherd shirt. the ability to willingly suspend disbelief long enough to sit through enough classes to get a college degree is the differentiator, and that looks grim. Besides, improving this has now reduced the economic value of a degree. Maybe productive personal values cooling too. The people who value productivity and change get the hell out, too, leaving the rest to rot. I will bet that in the right circumstance, productivity is important to these folks, too. At least in Vance’s narrative, what’s missing is conscientiousness.