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BERLIN — Germany, Europe's economic engine, is back in gear after a painful recession, as foreign customers snap up cars and industrial machinery and the country reaps the benefits of stimulus spending that helped keep the motor running at home during the downturn.
In particular, economists point to government support for keeping workers on the job with shorter hours instead of laying them off — a measure that kept more money in people's pockets and prevented a growth-killing spike in unemployment.
I would rather have someone maintain their job with fewer hours and receive compensation similar to unemployment insurance (call it underemployment insurance?), as opposed to having no job for a period of 99+ weeks and collect a check with no contribution at all. The article mentions workers would get 60% of their lost salary, which seems like a fair trade off.
For example, Trumpf, a machine-tool maker in the south German city of Ditzingen, managed to get through the recession without laying off any of its 4,000 German workers. In the United States, Trumpf laid off 90 of the 650 workers.
Why the difference? Part of the answer is that, in Germany, Trumpf could take advantage of government incentives to reduce worker hours rather than lay off people, a system known as short work. In the program, the government gives workers partial compensation for the lost wages.
To copy Germany's social and economic sucess America would have to quit demonizing concepts like socialism and accept real limits on consumption and greed. Labor unions are have real power in Germany and have more than just token representation on corporate boards of directors and in political parties. Labor has a real hand in creating and supervizing corporate and national policy. There is a real social compact in a nation like Germany. Unilike America which relies on foreign manufacturing Germany exports most of the product of German labor. Germany dominates European economic trade and its banks finance most of Europe outside of Germany's borders. This has the effect of lowering German consumption and living standards. So Americans would have to see their consumption lowered 20-30% to meet German levels but the gain would be real fiscal stability and less debt.
I would think that American fiscal conservatives would approve of some of the things that German Chancellor Angela Merkel has done. Like her opposing Obama's calls for more stimulus spending.
I would think that American fiscal conservatives would approve of some of the things that German Chancellor Angela Merkel has done. Like her opposing Obama's calls for more stimulus spending.
yep. had the steal from us package been truly targeted at job creation, rather than just spending money on crap programs that did nothing to add jobs, there would have been far less outrage from the people. obama made the promise that if the steal from us package was passed, unemployment would not have gone above 8%. well it is near 10% now.
There were a few companies here in the US that cut back hours to avoid layoffs.
Given the choice, it's a win/win in the long run as far as employee morale after a mass layoff and their productivity.
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