Two Sides of the German Economy


This month, Reuters says that Germany's doing quite well for itself:



Last month, Germany was not doing so well, at least as far as exports are concerned:



So, the truth lies somewhere between these two stories. There's good news and bad news with any economic program or sector these days. This uncertainty is killing real growth throughout the world, not just in the United States or even in Germany. Too many companies are holding back and refusing to cut loose and start growing. I would say that stagnation created by the self-fulfilling prophecy of being prepared for another major dip by holding back (thus creating that dip) is what we're facing.

There is virtually full employment in Southern Germany right now. Now, it may be 7 or 8 percent unemployment, depending on which figures come out, but this is a country where people enjoy full government benefits and don't necessarily have to work. They are screaming for more workers here, and people from all over the Eurozone with technical skills are finding work here. So, is Germany in good shape or in bad shape?

It depends on how German society begins to really accept multiculturalism. Without some tolerance for other cultures, Germany is never going to do well.