From: bigger@sage.cc.purdue.edu (Marcel Bigger)
Subject: I want a German standard of living!
Organization: Purdue University Computing Center
Distribution: usa
Date: Fri, 6 Nov 1992 18:21:31 GMT


In article <1992Oct28.145126.5242@desire.wright.edu> demon@desire.wright.edu (Stupendous Man) writes:
>In article <60560011@hpcuhe.cup.hp.com>, megana@hpcuhe.cup.hp.com (Megan Adams) writes:
>> I don't want a demorepublicrat standard of living.
>> I don't want a libertarian standard of living.
>> I want a GERMAN standard of living.
>
>	Great.  Are you willing to be one of the 10% unemployed?

Germany is absorbing the high unemployment from the East. Germany's
unemployment figures were much lower before Unification. It will
take time to consolidate between the two former Germanys.


>:)
>
>> The san jose mercury ran an editorial on germany today. I'm excerpting some
>> stats:
>> * german manufacturing sector 50% greater than in the united states
>
>	Per capita?  What's the measurement basis!
>
>> * german service economy has 40% fewer minimum wage jobs
>
>	What's Germany's minimum wage?  How many young people are unemployed?
>
>> * german salaries among the world's highest, in most categories 25-50%
>>   higher than in usa
>
>	I'll have to fish out my FORBES with those numbers to check this.  But
>again, do you want to be one of the 10% unemployed?
>
>> * workweek of 4 1/2 days, 6 weeks vacation
>
>	I can work 4 1/2 days if I choose.  My vacation time started out at 3
>weeks, and will increase to 5 weeks after 10 years here.  Most sasifactory.
>
>> * increases of productivity twice the usa rate
>
>	That's not hard considering we stomp them in total productivity.
>

	Naturally, because the United States has much more people.
Or differently put, the vast geographical area of the U.S. allows
for more people. With its high population density Germany could
hardly boost its population.

>> * savings rate 4 times the usa savings rate
>
>	Social pattern.  The US government can't change that without social
>engineering.  (Blech.)

Still, that's a problem because investments depend on savings.

>
>> * teachers among the highest paid in the world and the school year the 
>> longest.
>
>	Teacher pay does not affect student abilities.  Study after study has
>proven this.  The parent is the one factor that can.
>	So I guess the kids wait until they're employed to get the summer off?
>:)  Seriously, I'm all in favor of longer school years.
>

Teacher pay does not affect student abilities but it surely does affect
how motivated the teacher will be for his job. A higher wage rate
for primary and secondary school teachers in the U.S. would increase
the incentives for better teacher education at universities and colleges.

>> * trade school program guarantees almost everyone a high wage skill
>
>	Sorry but you can't teach a rock to fly.
>

In U.S. universities and colleges are everything to everybody:
trade school, business school, technology school, nursing school,
music school, ...
In Germany universities are just universities; there is a very
narrow and specific definition what an university is.
So there are outside the universities other TERTIARY STAGE educational
institutions like trade schools, business schools, ...

>> How do they do it? MASSIVE SOCIAL SPENDING AND A BALANCED BUDGET.
>
>	MASSIVE UNEMPLOYMENT AND SOCIAL UNREST.  Or perhaps you haven't noticed
>the surge in neo-Nazism as the unemployment rate climbs?

I don't think it is the economy that causes social torque in Germany. It is more
Germany's location, role and function within the nations of Europe.

>
>> A tax and spend economy that focuses on investment.
>
>	Tax N Spend plocies are causing their current problems.
>
>> Tax bills 30% higher than in usa--and for that you get a vastly better
>> economy, health care, and as much education as you can stuff into your head.
>
>	Sorry, but you can't tax your way into a better way of life.
>
>> A better pension plan, child care etc etc. I'D PAY IT. Guess what:
>> the middle class in Germany is 70% of the population, and in usa it's 50%,
>> the LOWEST IN THE INDUSTRIALIZED WORLD. 
>
>	And?  It would be more IF THE US GOVERNMENT WOULD NOT SUBSIDIZE
>POVERTY!
>
>> DOWN WITH TRICKLE DOWN. UP WITH SOCIAL SPENDING AND A BALANCED BUDGET.
>
>	Up with supply-side, down with robbing from peter to pay paulina.
>

Does supply side economics work? See Reagan presidency. One problem
with this grand strategy is the time factor. Tax decreases and incentives
increase demand before it increases supply. Furthermore, increasing supply
means increasing productivity. Productivity is not easily increased and
when then only at small magnitude over a long period of time.

>> megana.
>
>	Hope you'll be happy being one of the 10% unemployed.
>
>Brett                                                      
>_______________________________________________________________________________
>Proconsul Computer Consulting                                        CHA-CHING!
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>Disclaimer:								   NOT!

Servus

Marcel W. Bigger
stud. oec.   



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