here some facts, check on them yourself:
2004 Germany Growth Rate: 0.0%. Unemployment: 10.7% (fresh as of 01/04/05 and growing).
2004 Italy Growth Rate: 0.8%. Unemployment: 8.6% (was 8.8% a year ago).
Some other interesting info:
Population (West only) Germany: approx. 65 Million
Population Italy: approx. 58 Million
(For all Germany add the ex GDR).
That's about 16 million...... roughly a fourth of West Germany's population. That's the equivalent of the US taking on a third world country with a population of 70 million people. Is it all that surprising that the former GDR has been a drag on the German economy?
As you know yourself the GDR part has so far not added much to the total productivity of Germany but is - your own words - rather a burden on the West (investments only, bound to yield a return in the future IMO). So why would it be so astounding that Italy could do better than Germany right now? Coming up from behind...
It will be years.......probably a generation......before a revitalized GDR truly benefits the whole of Germany. Therefore it isn't astounding that Italy is doing better than Germany. But how would the comparison look if there was no GDR with which to contend?
There is no question there are some problems with the German economic model.........after all, that's why they are pushing through reforms in the Bundestag. Everyone, including countries, need to 'reinvent' themselves periodically.
Of course I am not talking about the total GNP but rather comparing deltas. With the Italian Delta a big plus and the Germans hanging in there, right at the bottom of the EU ladder for almost 4 years now. A fact.
Add to that the intangibles, which you find out when spending time in Germany and Italy.
Germany does, however, produce such important product as BMW, Daimler Benz and Porsche. Italy only provides rather unimportant stuff like food, wine, fashion and accessories of that and so on.
Amazing they can do so well down there, really.
indexmundi.com;
I guess the issue at hand is do you stick with the one that has performed long term but is having trouble short term, or do you jump ship for the one that recently seems to have found economic religion. Frankly, I will stick with the long termer. |
