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Chief economist of FT De: change German economic model

by TGeraghty Mon Feb 16th, 2009 at 10:58:29 AM EST

Sounds like this guy has been combing through the ET archives:

Time to change Germany's economic model

. . . why then did this crisis hit Germany so much harder than others?

. . . Germany is now paying the price for a policy to force economic growth through cost competition, wage cuts, and a policy to maintain its position as the world's largest exporter. . . .

Germany will have to reform its economic model urgently. If Germany had not accepted wage cuts, increases in health care contributions, and a large rise in value-added tax, the country would be a little less competitive today. But in return, it would have a stronger domestic economy now, and most importantly, the country would be better equipped to absorb a global economic shock.

To reiterate, this is the chief economist of FT Germany saying this, not some crazy lefty blogger.

H/T glacierpeaks at Open Left


Eurotribbers have been harping on this point for years. Some of the diaries Mr. Fricke may have been looking at:

Europe.Is.Doomed (6) - 'impressive' German economy needs (what else) "reform"

Europe.Is.Doomed. (3) - poor Germany

Don't spite the God of economic reform

Is this really good news???

Germany's Surprising Economy Redux

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He still equates wage cuts, increases in health care contributions and VAT rise (as well as cost competition?) with being less competitive.  But a fine pick-up just the same.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Mon Feb 16th, 2009 at 11:52:24 AM EST
To reiterate, this is the chief economist of FT Germany saying this, not some crazy lefty blogger.

Uhmm, the chief economist of the FTD is a crazy lefty blogger.  

As well he probably is for longer on the war path with German export orientation than ET exists. And he is going to loose this war again and again, because 'Exportweltmeister' title makes people in charge prouder than some increase in HDI or whatever the alternative is.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers

by Martin (weiser.mensch(at)googlemail.com) on Mon Feb 16th, 2009 at 12:36:26 PM EST
I was being somewhat sarcastic with that "crazy lefty blogger" stuff. I was hoping maybe this article was a signal that the financial/economic elites in Europe were backing away from the "reform" ideology. Too bad . . .
by TGeraghty on Mon Feb 16th, 2009 at 12:47:06 PM EST
[ Parent ]
It should indeed be noted that the FTD staff is (was?) significantly more to the left than the FT. This came famously to the surface in 2002, when the chief editor had the paper endorse the CDU/CSU, but it was widely reported that more editors would have preferred the Greens, and some (including Fricke?) were allowed to publish a different endorsement. (Also note: this was before Harz-IV.)

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Mon Feb 16th, 2009 at 06:42:21 PM EST
[ Parent ]
Nice to see you, TG!
by afew (afew(a in a circle)eurotrib_dot_com) on Mon Feb 16th, 2009 at 12:55:10 PM EST
Good to see you, too! But I'm always around lurking even if I'm not commenting or writing diaries.
by TGeraghty on Mon Feb 16th, 2009 at 01:14:36 PM EST
[ Parent ]
by afew (afew(a in a circle)eurotrib_dot_com) on Mon Feb 16th, 2009 at 01:16:21 PM EST
[ Parent ]
You get the system working to its logical conclusion (and we're not there yet, but the Germans have been there once before), a conclusion which is unfortunately inescapable, and these things are simply inevitable.

They happened in Germany because of the collapse of the Soviet Union and, re-unification under DBR terms, this is what you get when their system is left to do is they would have it do.  

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Mon Feb 16th, 2009 at 05:51:06 PM EST


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