Comment Re:moof (Score 1) 13
Being German, my perspective is a bit different.
First of all, I have no idea why one would want to express exports in number of goods, because a country exporting screws and fruit would be much better off than a country exporting huge container ships, which is ridiculous. I'd rather question the utility of using a virtual currency like the USD as a measurement, but as the Euro also is virtual (as opposed to having a gold standard or any other *real* value), I'll shrug it off.
Indeed the main difference between Germany and countries like China is exactly what you state, we export high-end, high-priced goods, among them lots of "brain goods" like patents, procedures, science. The cost of labor in Germany is so high that even considering to mass-produce something cheaply is out of the question.
I suppose you're American, given the way you use the word "socialist". ^^ Considering that the ideology of socialism was invented by one of my fellow Germans, I can assure you that we're far from having a socialist system in Germany. We have mandatory health care, for example, but the rates keep climbing while the services paid for decline, and we have a two-class system where the people who can afford "private" health care get everything while people having mandatory health care wait for months to even get an appointment at a specialist, no matter how sick they are (read: cancer, seizures, etc.).
Yes, we have mandatory unemployment insurance which also isn't cheap and only gives you roughly 60% of what you made - for 12 months in which you'll probably get your money cut even more if you refuse to take a considerably worse-paid job out of your profession at the other end of the country.
After those 12 months you get the equivalent of welfare which is at poverty level - once you've used up all your "resources". That means you won't get anything at all as long as you have a car, house, or the college savings of your children. Yes, you read that right. I'd have to sell my house (which is technically still owned by the bank), cancel all savings for old age and live from the savings of my children until I get the minimum living wage. Oh, and of course they can still cut it anytime they wish if they think you have "income", e.g. because you have parents living *above* the poverty line and "they will surely support their grandchildren, don't they? here, we cut EUR 50 per month for that income".
Socialist my ass. Sorry for the rant, but really, Germany isn't far from social riots, and the discussion about allowing the military to operate inside our borders shows that the politicians know it. (Our constitution, forced upon us by the "allies", doesn't allow the Bundeswehr to do police work, because the Nazi regime mixed police and military, and they're looking to change that so that "the Bundeswehr can help when the next floods come". Yeah, sure. I totally buy it.)
Actually we *do* have an influx of poor immigrants, yes, and I don't think this has an influence on our export, but maybe I'm missing a connection here.
The point is that we can only export so much as long as other countries can't keep up technologically. We're going to lose that position in the next 10 or 15 years, if not earlier, because the cost of the social systems explode, resulting in all of the above, taxes get higher, innovation gets stumped by the high cost of labor, and all the current government preaches is that it's because the market must become even freer. Yes, letting foreign investors buy up our local infrastructure and economy is totally going to work. Not.
But YOU guys are REALLY deep in the shit if even Spain has more exports per capita. Spain has a HUGE housing bubble that is going to burst soon, and is one of the shittiest economies in Europe. Italy the same (the latter, no housing bubble there), and they have a HUGE problem with organized crime. Look at the Fed interest rates. Look at how many dollars the Fed pumps out. The USD is going down the drain, and rightly so. There's nothing behind it. It's completely virtual, with an economy driven by consumers using lent money to consume. How many percent of American households are overindebted, 40%? 50%? I've read numbers as high as 60%, but I don't think that your economy would even *exist* at that rate unless you're really good at hiding turds.
Look, I don't want to insult you. I think the situation is really bad *everywhere* in the Western world. But all we do is talk about our greatness, while developing countries like China and India are eating our lunch. We will get fucked, and hard. And soon. The next investment bubble is already building up. When it bursts, the Fed can't decrease the interest rate any more. And nobody will want to have those worthless dollars any more. It will get ugly. Really ugly.
Solutions, anyone?