Economic Decline in Germany
Discussion
We have had a number of threads recently about proposals for more regulation and the problems of an over generous welfare state.
A cautionary tale about the long term effects of these problems is Germany.
In 1995 British GDP per capita was only 92% of the German average.
Now British GDP is 9% higher-German unemployment is now 5.2 million and rising.
If you eliminate the need to work through over generous welfare benefits and strangle business with red tape eventually there is an economic price to pay-and it might take years to manifest itself.
A cautionary tale about the long term effects of these problems is Germany.
In 1995 British GDP per capita was only 92% of the German average.
Now British GDP is 9% higher-German unemployment is now 5.2 million and rising.
If you eliminate the need to work through over generous welfare benefits and strangle business with red tape eventually there is an economic price to pay-and it might take years to manifest itself.
JagLover said:
We have had a number of threads recently about proposals for more regulation and the problems of an over generous welfare state.
A cautionary tale about the long term effects of these problems is Germany.
In 1995 British GDP per capita was only 92% of the German average.
Now British GDP is 9% higher-German unemployment is now 5.2 million and rising.
If you eliminate the need to work through over generous welfare benefits and strangle business with red tape eventually there is an economic price to pay-and it might take years to manifest itself.
Picked this up loud and clear on a recent business trip. EU take note.
JagLover said:
We have had a number of threads recently about proposals for more regulation and the problems of an over generous welfare state.
A cautionary tale about the long term effects of these problems is Germany.
In 1995 British GDP per capita was only 92% of the German average.
Now British GDP is 9% higher-German unemployment is now 5.2 million and rising.
If you eliminate the need to work through over generous welfare benefits and strangle business with red tape eventually there is an economic price to pay-and it might take years to manifest itself.
They have been on the edge of a primary industry collapse for some time now.
Go into the Euro with Germany in this state and France not that far behind?
Not on your nelly!
Plotloss said:
They have been on the edge of a primary industry collapse for some time now.
It's days may be numbered, but at least they still have a primary industry. Though I'm an out and out capitalist and europhobe, I have found the death of the British industrial base alarming. I'm not sure that the UK economic model based on a financial industry and a service sector will be enough to sustain the country long term. Hopefully I'll be proved wrong....
nel said:
They have been on the edge of a primary industry collapse for some time now.
It's days may be numbered, but at least they still have a primary industry. Though I'm an out and out capitalist and europhobe, I have found the death of the British industrial base alarming. I'm not sure that the UK economic model based on a financial industry and a service sector will be enough to sustain the country long term. Hopefully I'll be proved wrong....
I believe you are not thinking things through.
Take the example of Dyson-they switched their manufacturing to the FarEast-Making their factory staff redundant. However since then they have employed another 100 people in their UK base, design staff etc.
The future is in the Design & marketing of products and all the associated financial industries-the actual manufacturing of it will be subcontracted. The UK has embraced the future to a much greater extent than Germany.
nel said:
They have been on the edge of a primary industry collapse for some time now.
It's days may be numbered, but at least they still have a primary industry. Though I'm an out and out capitalist and europhobe, I have found the death of the British industrial base alarming. I'm not sure that the UK economic model based on a financial industry and a service sector will be enough to sustain the country long term. Hopefully I'll be proved wrong....
But to be fair we moved through the Maggie years from Primary to Tertiary.
It was difficult for us and there was fallout and that was when Primary was pretty good and Tertiary was evolving at a massive rate.
In Germany its replacing something that is very bad with something that is not of the scale to take its place.
What happens to us, not sure, outsourcing tertiary industry which is happening is worrying but I still reckon we are a lot better of than Germany.
JagLover said:
Plotloss said:
They have been on the edge of a primary industry collapse for some time now.
It's days may be numbered, but at least they still have a primary industry. Though I'm an out and out capitalist and europhobe, I have found the death of the British industrial base alarming. I'm not sure that the UK economic model based on a financial industry and a service sector will be enough to sustain the country long term. Hopefully I'll be proved wrong....
I believe you are not thinking things through.
Take the example of Dyson-they switched their manufacturing to the FarEast-Making their factory staff redundant. However since then they have employed another 100 people in their UK base, design staff etc.
The future is in the Design & marketing of products and all the associated financial industries-the actual manufacturing of it will be subcontracted. The UK has embraced the future to a much greater extent than Germany.
Yeah, I know that's the theory, but the head office and sexy design studios will never end up employing as many people as a production site. And what happens to the disaffected (smokers
) who are only suited to fairly mundane assembly line type work? They become layabouts and end up on benefits...
JagLover said:
Take the example of Dyson-they switched their manufacturing to the FarEast-Making their factory staff redundant. However since then they have employed another 100 people in their UK base, design staff etc... The future is in the Design & marketing of products and all the associated financial industries-the actual manufacturing of it will be subcontracted.
At the moment. Wait until China learns design, marketing and finance to add to manufacturing.
nel said:
Yeah, I know that's the theory, but the head office and sexy design studios will never end up employing as many people as a production site. And what happens to the disaffected (smokers
They become layabouts and end up on benefits...
That is the problem Unskilled jobs are vanishing but our schools still produce a large proportion of illiterates each year.
Who by the way will have already taken up smoking
simpo two said:
Take the example of Dyson-they switched their manufacturing to the FarEast-Making their factory staff redundant. However since then they have employed another 100 people in their UK base, design staff etc... The future is in the Design & marketing of products and all the associated financial industries-the actual manufacturing of it will be subcontracted.
At the moment. Wait until China learns design, marketing and finance to add to manufacturing.
You don't believe in comparative advantage then.
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