menu

Why Germany And China Are Largely Unaffected In This Recession

Why Germany And China Are Largely Unaffected In This Recession
Innovation

Could manufacturing resolve America's economic woes?

Naresh Kumar
  • 7 july 2010

As the economic downturn continues across the world, two nations have come out unscathed: China and Germany. Harold Meyerson of the Washington Post reasons that its their robust manufacturing sector and predominantly industrial economies that have helped them to not only survive the recession but also thrive in it. In contrast, he says, America’s transition from a manufacturing to a post-industrial economy has resulted in its most productive jobs being offshored and wages getting stagnated since the manufacturing sector began to contract.

Meyerson says that America is losing manufacturing not because of cheap labor elsewhere but because they have neglected this sector. He compares Germany’s rise in manufacturing to that of the US:

Most Americans, I suspect, believe we’re losing manufacturing because we can’t compete against cheap Chinese labor. But Germany has remained a manufacturing giant notwithstanding the rise of East Asia, making high-end products with a workforce that is more unionized and better paid than ours. German exports came to $1.1 trillion in 2009 — roughly $125 billion more than we exported, though there are just 82 million Germans to our 310 million Americans. Germany’s yearly trade balance went from a deficit of $6 billion in 1998 to a surplus of $267 billion in 2008 — the same year the United States ran a trade deficit of $569 billion. Over those same 10 years, Germany’s annual growth rate per capita exceeded ours.

So even as Germany and China have been busily building, and selling us, high-speed trains, photovoltaic cells and lithium-ion batteries, we’ve spent the past decade, at the direction of our CEOs and bankers, shuttering 50,000 factories and springing credit-default swaps on an unsuspecting world.

WashingtonPost: “In recession battle, Germany and China are winners”

[via Neatorama]

Image by Werner Kunz (werkunz1)

Innovation
Trending

PSFK's Workplace Vision: How The Nurturing Of Seeds Will Come To Define The Onboarding Process

Brand Development
Media & Publishing Yesterday

CNN Launched An Entire Drone Division Of Their News Network

CNN AIR incorporates aerial footage into the corporation's ongoing news coverage

Advertising Yesterday

Uber’s Breathalyzer Cards Let You Know If You Are Sober Enough To Drive

A new campaign from the ride-sharing service raises awareness about the importance of a safe trip home

Trending

Get PSFK's Latest Report: Future of Work

See All
Design Yesterday

Milk Proteins Could Be The Packaging Material Of The Future

A newly discovered casein-based alternative is biodegradable, sustainable and even edible

Technology Yesterday

Intel’s New System Will Help Technology See And Understand The World

Joule is a tiny board for developers designed to bring powerful computer vision to cheap and easy-to-make prototypes

PURPLELIST EXPERTS

Matt Bright

Printed Electronics, Packaging, NFC

Design Yesterday

This LA Hotel Is Designed Specifically For Cocktail Drinkers

The Walker Inn is a new Los Angeles "Bed and Beverage" experience that offers guests an intimate setting for their night cap

Education Yesterday

Bringing Virtual Reality And Telepresence Robotics To E-Learning

This Learning Management System is embracing new technologies to reallocate teaching resources to where they should be going

Advertising Yesterday

Interactive Art Exhibition For Dogs Provides Endless Fun

Installations created by artist Dominic Wilcox are based on activities loved by canines, such as fetching tennis balls and splashing in water

PSFK LABS REPORT

Future Of Work
Cultivating The Next Generation Of Leaders
NEW

PSFK Op-Ed august 23, 2016

Modern Workplace Culture: No More Fat Cats Or Kissing Ass

Samar Birwadker, CEO & Co-Founder of Good & Co, on designing shared organizational values to optimize employee happiness and success

PSFK Labs august 24, 2016

PSFK’s Workplace Vision: The Annual Review Becomes An Everyday, Collaborative Activity

Our Future of Work vision is a web-based platform through which teams can collaborate on and monitor performance reviews across all channels, ensuring a happier workplace

Beauty Yesterday

Design Your Own Custom Watch Faces

Customize your wrist device with Garmin's new app that lets you display personalized images or patterns

Syndicated Yesterday

How The Olympics Taught Us Lessons In Cloud Analytics

Dan Vesset, group VP for analytics and information management at IDC, tells how cloud-based business analytics support decision-making

Beauty Yesterday

Retail Expert: What Sustainability Means To The Millennial Generation

Jo Godden, Founder of RubyMoon, discusses how brands can limit their environmental impact worldwide

Arts & Culture Yesterday

Artist Shuts Down Sexist Comments By Turning Them Into Images

Rora Blue explores social stigma in a photo series titled 'Handle With Care'

Arts & Culture Yesterday

Japanese Face Wash Creates A Perfect Rose Every Time

Kanebo's latest addition to the Evita line includes an application that dispenses cleanser in the shape of a flower

PSFK LABS REPORT

Innovation Debrief: Boston
Business Concepts Born In 'The Hub'
AVAILABLE NOW

Mobile Yesterday

Twitter Bot Will Warn You If You Are A Troll

An online tool developed out of Intel's Hack Harassment movement helps filter out or notify cyber bullies

Retail Yesterday

Passengers Can Now Earn Airline Miles For Sharing Their Location Data

The Frequent Flyer app measures background data and gives travelers points that can be exchanged for tickets with participating airlines

Advertising Yesterday

The NBA Is Releasing Two Original Shows To Stream On Twitter

The sports league announced a deal that demonstrates an interesting expansion of its content strategy

No search results found.