Germany’s Export Boom Has Trade Partners Stewing

Fortunes turn quickly, and the experience of German manufacturers shows that some firms emerge from recession with renewed strength. But global trade partners that rely on deficit spending claim that German prosperity comes at others’ expense, as suggests this Spiegel Online article. Critics complain that a weak euro, German wage stability and failure to stimulate domestic demand decrease the ability of foreign manufacturers to sell in German markets. In particular, US leaders gripe about German thrift and call on the nation to stimulate spending to boost a still-sagging global economy. Germany shares the euro with struggling European neighbors; so, unlike China, the nation cannot adjust the currency. For German firms, orders from Asia outweigh those from the US, and German leaders are intent on keeping economic pace with China. Slowing Germany’s growth won’t help the US, France or the UK. But the indebted still blame surplus nations for their plight. – YaleGlobal