Attention Economy


Wednesday, November 6, 2013

German Export Machine - A Threat to the Global Economy?


Der Spiegel has a piece arguing that Germany is being unfairly criticized:
http://www.spiegel.de/international/business/complaints-about-export-surplus-of-germany-unfounded-a-931607.html


Caroline Baum offers her opinion on the topic:
http://www.bloomberg.com/news/2013-11-06/drunk-on-debt-u-s-tells-teetotaler-to-sober-up.html
“How is it the U.S. is so good at advising other countries and so lousy at running its own? The advice on stimulating domestic demand comes from a country that overconsumes and borrows beyond its means to support its habits. As a nation, we refuse to forgo current consumption -- in fact, spending is a policy goal -- for future consumption. U.S. real personal consumption expenditures exceed 70 percent of GDP, compared with 58 percent in Germany.”


Paul Krugman’s critique of German economic approach

Martin Wolf offers a critique in the FT