Why is Germany experiencing solid economic growth while America suffers stagnation? Donald Luskin and Lorcan Kelly, writing in the Wall Street Journal, explain:
It has come to this: European socialists know more about making free markets work than our American president.
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Starting in 2003, Germany under then-Chancellor Gerhard Schroeder began to implement a program of long-term structural reform called "Agenda 2010." The idea was to transform Germany into an economy where business has an incentive to invest, and where labor has an incentive—and an opportunity—to work. This was pro-growth reform that would be very familiar to Ronald Reagan and Margaret Thatcher.In addition, Germany rejected Obama's Keynesian stimulus ideas for a more sane fiscal policy.
The centerpiece were labor-market reforms designed by a former human-resources executive at Volkswagen AG. The power of unions and craft guilds was curtailed, making it easier for unskilled youth to enter the job market and easier for employers to hire and fire at will. Germany's lavish unemployment benefits were sharply cut back. An unemployed person in social-democratic Germany today can draw benefits for only about half as long as his counterpart in capitalist America.
It has come to this: European socialists know more about making free markets work than our American president.
PREVIOUSLY on Obamanomics:
•The Obama first term debt: $70,000 per family
•Obamanomics: maximize the uncertainty
•Obamanomics: its intellectual foundations explained
•Strangling business is no way to create jobs
•CEOs to Obama: Get out of the way!
•Survey of CEOs: Obamanomics is still the problem
•A CEO explains how Obama's policies damage the economy
•CEO: businesses are "frightened to death" of Obamacare and Obama's regulatory overreach
•CEO: businesses are "frightened to death" of Obamacare and Obama's regulatory overreach
•Obamanomics and the prolonged recession
•How to lie with statistics
•3M: “Politicians forget that business has choice"
•Obamacare: Corporatism in action
•Obama 0, Germany 1:
•Medical insurance prices rising due to ObamaCare
•Laws of Economics 1; Obama 0
•Why Liberal economics fails: redistribution does not create wealth (Illustrated)
•Obamacare endangers student health
•Why business isn't hiring
•Dodd-Frank finance "reform" bill stops bond market cold
•Why unemployment insurance must be extended (illustrated)
•Obamanomics still failing, Washington Post discovers
•Russia goes supply-side
•Study: Liberals are economically illiterate
•How to lie with statistics
•3M: “Politicians forget that business has choice"
•Obamacare: Corporatism in action
•Obama 0, Germany 1:
•Medical insurance prices rising due to ObamaCare
•Laws of Economics 1; Obama 0
•Why Liberal economics fails: redistribution does not create wealth (Illustrated)
•Obamacare endangers student health
•Why business isn't hiring
•Dodd-Frank finance "reform" bill stops bond market cold
•Why unemployment insurance must be extended (illustrated)
•Obamanomics still failing, Washington Post discovers
•Russia goes supply-side
•Study: Liberals are economically illiterate
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