Economic Hubris

Too Fat and Happy

Mann mit Uebergewicht
Dangerous satisfaction.
  • Why it matters

    Why it matters

    • If you look at the bigger picture beyond the euro zone, Germany’s situation suddenly doesn’t appear so rosy, the author argues.
  • Facts


    • The German government’s budget has a surplus, the labor market is running smoothly and wages and salaries are rising.
    • But about a fourth of last year’s economic growth was due to population increases, a trend unlikely to continue.
    • The economies of the United States and Britain are growing faster than in Germany.
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Germany’s position seems exceptionally comfortable right now.

The economy is growing more vigorously than any other large economy in the euro zone. The government’s budget is in the black, the labor market is humming along, and there are decent increases in wages and salaries.

Germany’s consumers are satisfied with their economic situation and hence with the policies of the federal government. Actually, Chancellor Angela Merkel and her team could give up governing altogether. Just a few new acts of beneficence shortly before the next election and her re-election would be assured.

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