Archive for economy

Cowboys on the Rhine – US Firms Flout German Labor Practices

amazongermany01

The two countries I personally know best are the US and Germany.  I was born here, grew up here, went to school here but I also studied in Germany and lived and worked there a total of 16 years completely ‘on the economy’ – i.e., I was not there with the US military.

I preface that to what I’m about to write because I often compare my experiences here before moving to Europe and since my return with my time in Germany.

I studied in Germany on a university exchange fellowship and a difference I immediately noticed between my university here and the Freie Universität Berlin was the seriousness of the students.  Here I was in a fraternity whose primary focus was parties (and we had some great ones!), there I was among students who were completely focused on their subjects and seldom attended parties but often took research trips to learn from the real world rather than books.

Later, when I worked in Germany, for a public tv network (the ARD, much like the BBC or the French or Italian networks), I began to really learn about German society in depth (as opposed to what it looks like from the viewpoint of a student).

Several of my valuable takeaways from that time were the expression ‘wenn schon, denn schon’ – which, loosely translated, means ‘if you’re going to do it at all, do it right’ and the concept of the ‘Sozialmarktwirtschaft’ – the ‘social market economy’.

The ‘social market economy’ values the free market, values ‘economy’ – in both senses of the word – thrift and economic activity – and values the society this market is a part of.  This is a critical point because Germans place a high value on their society which is, after all, their way of life.

One way to think of ‘social’ in this context is to think of Rousseau’s ‘the social contract’.

The German ‘social market economy’ concept means that the market does not exist just to make the rich richer but to benefit all in the society.

So…a long preamble to this article from Der Spiegel International (in English) about how US firms could not care less about the social market economy.  They just want money, money, money and to hell with the people involved.  Greed pure and simple.

Here’s an excerpt:

Amazon is playing according to its own rules, and thus finds itself in the best of company with numerous other US corporations that have difficulty accepting Germany’s so-called “social partnership,” which is the traditional relationship that exists between employees and employers.

In other words ‘no unions’ and ‘we’ll pay you what we want to and you’ll be happy with it’.  You want to spend Christmas with your family?  Find another job – if you can – but don’t be surprised if you can’t…we don’t like strikers.

Here’s the link:

http://www.spiegel.de/international/business/amazon-and-other-us-corporations-flout-german-labor-laws-a-900615.html

 

Live Streaming Video- President Obama Speaks at Ellicott Dredges 1:20p EDT

over

Video- President’s Weekly Address: Growing the Housing Market and Supporting our Homeowners

U.S. budget surplus biggest in 5 years; federal deficit is down 32% so far this fiscal year

chart budget deficit shrinks 4 year low Steve Benen Maddow Blog Oct 2012

If Fox Biz says it, it must be true. Via an email alert:

The U.S. federal budget surplus came in at $112.9 billion in April, up from $59 billion in the same month in 2012. The government is running a $488 billion deficit for fiscal 2013, down from $720 billion in a comparable period in fiscal 2012.

And via Market Watch:

It was the first monthly surplus since January and the biggest monthly surplus since the $159 billion budget surplus of April 2008.

Tax receipts were $407 billion, up 28% versus April 2012 [...]

Some see the government’s improving finances as affecting a potential debt deal between President Barack Obama and Republicans. “With the deficit plunging, support for entitlement reform — which looked so promising in early April — has clearly faded,” wrote Greg Valliere, chief political strategist at Potomac Research Group in a note on Friday.

Gee, taxes were raised, unemployment is down, and the world didn’t end.

bikini graph May 2013 private sector

Everybody say it with me now: Blame Obama.

blame obama Bush's fault

Live Streaming Video- President Obama Speaks at Manor New Technology High School 2:05p EDT

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Quickie- US jobless aid applications fall to 5-year low

goodnews

Imagine what the economy would be like without Republican obstructionism,

WASHINGTON (AP) — The number of Americans who applied for unemployment benefits fell by 4,000 last week to a seasonally adjusted 323,000, a five-year low. Layoffs have returned to pre-recession levels, a trend that could lead to more hiring.

The Labor Department said Thursday that the less volatile four-week average dropped 6,250 to 336,750. That the fewest since November 2007, one month before the Great Recession began.

Applications are a proxy for layoffs. Weekly applications have fallen about 9 percent since November and are now at a level consistent with a healthy economy. The last time weekly applications were lower was in January 2008, when they were 321,000.

Economists were largely encouraged by the decline.

Quickie Gallup- Americans’ Financial Worry Lowest Since Before Recession

galworry

Good news you won’t hear from Fox.

PRINCETON, NJ – Americans’ financial worry has eased to the lowest level since before the recession. Gallup classifies 53% of Americans as highly or moderately worried about their finances, down from a peak of 61% a year ago, and the lowest since 45% in 2007.

(snip)

This year, 25% of Americans are worried about six or seven of the seven items — putting them in the “highly worried” category. Another 28% worry about three to five items and are classified as “moderately worried.” The remaining 47% have few financial worries, including 23% who are worried about none of the seven items.

Americans were generally less worried about financial matters before the 2008-2009 recession than they have been since. A maximum of 51% were highly or moderately worried about their finances from 2001-2007, compared with a range of 53% to 61% since then.