I am distrustful of international economic comparisons, especially when only two countries are compared, in this instance the United States and Germany. Countries differ in a large number of respects that bear on economic performance; in a large sample, many of those differences may cancel, but a sample of two is tiny.
Becker provides a plausible explanation of Germany’s lower unemployment rate, but is it correct? According to the Bureau of Labor Statistics, Germany’s unemployment rate is not the lowest current unemployment rate of ten major countries that the BLS has compared after adjusting the unemployment rates in those countries to correspond to U.S. concepts of unemployment. France has the highest unemployment rate—9.6 percent—followed by the United States at 9.5 percent. The German rate is 7.5 percent. Australia, Canada, Japan, and the Netherlands have substantially lower unemployment rates. The U.K. unemployment rate, surprisingly, is only slightly above the German rate. Sweden and Italy complete the picture, with unemployment rates roughly halfway between the German and the American. Given European labor laws, it is surprising that the unemployment rate in France is only trivially higher than the U.S. rate and that the unemployment rates in Italy, the Netherlands, and Sweden are significantly below the U.S. rate, though Swedish labor laws, at least, are fairly loose, and the Italian unemployment rate is believed to be underestimated. But why should Canada and Japan have unemployment rates substantially below the U.S. level?
I venture the following guess. All these countries except Australia had before the economic crisis a higher personal savings rate than the United States. And all without exception derived a much higher fraction of their national income from exports than the United States. Because of our very low personal savings rate, and the (related) fact that most savings were in the form of home equity and (directly or indirectly) common stock, the crash of 2008 ushered in a protracted period of stagnant consumption spending as frightened American consumers increased their personal savings rate from 1.7 percent three years ago to 6.4 percent today. Producers and distributors in the third quarter of 2008 and in 2009 could foresee a sustained period of subpar demand, and so laid off many workers and have been slow to rehire them, anticipating that demand for goods and services will not increase substantially for some time.
In other advanced economies, higher personal savings and greater reliance on export earnings created expectations of more rapid economic recovery. Consumers would have less incentive to increase their savings further and thus reduce consumption; so businessmen could expect demand to revive sooner than in the United States. They could also expect their export markets to rebound soon, knowing that major importers of technologically advanced manufactured goods, such as China, India, and Brazil and other Latin American countries, had been hit less hard by the economic crisis. The quicker a solid economic recovery is expected to occur, the less prone employers are to lay off workers, because laying off and rehiring are costly, and the costs may well exceed a short period in which employees are not busy because demand for the employer’s product is weak.
I agree with Becker that the Obama Administration’s overly ambitious legislative program and intermittent outbursts of hostility to business are hurting our economic recovery. But I would be inclined to give greater weight, in explaining our stubbornly high unemployment, to the other factors that I have mentioned.
My other sticking point is that the restaurant is constantly referred to as a "traditional South African restaurant". Now let me tell you, I lived in South Africa for 30 years and travelled around quite a bit, but no restaurants in South Africa look like this. For my South African readers - it looks as if the guy who designed the Palace of the Lost City was let loose here with a blank cheque and a very loose creative brief. (For my international readers - imagine if there were a Spirit of Africa Hotel on the Strip in Las Vegas - this is what it would look like.)
Posted by: Louis Vuitton Outlet | 08/20/2011 at 03:39 AM
Dies ist ein sehr guter Artikel.Es ist wunderbar, ich bin so gespannt, es zu benutzen!Freuen Sie sich auf Ihre unicode aktualisieren.
Posted by: flytouch 3 | 08/29/2011 at 03:32 AM
Dieser Artikel ist sehr gut geschrieben, wollen wir helfen, oh.
Posted by: android 3.0 | 08/29/2011 at 08:51 PM
This is Sony new adventure into Android world, we will see if Sony can really compete with established brand in Android arena like Samsung, LG and Motorola. What I want to know, what is Android 3.0 operating system really? is it Honeycomb 3.2?
Posted by: Cheap tablet pc | 09/21/2011 at 02:24 AM
Nice one, there is actually some great points on this post some of my associates will find thfdjkfnis worthwhile, will send them a link, thanks
Posted by: fmdk | 09/28/2011 at 03:48 AM
Nice one, there is actually some great points on this post some of my associates will find this worthwhile, will send them a link, thanks
Posted by: UGG BOOTS CLEARANCE | 09/28/2011 at 03:49 AM
Es symbolisiert den reifen und einen neuen Anfang. So wählen Sie einen geeigneten brautkleider für die große Tag ist sehr wichtig. Sweet 16 hochzeitskleider Sie können wählen kurzen Heimkehr abendkleider oder Quinceanera Kleider! Jetzt haben wir mehrere Stile vorzustellen, sie sind sehr schön und eignen sich für diesen großen Tag.
Posted by: hochzeit | 09/28/2011 at 08:54 PM
Dies ist ein sehr guter Artikel.Es ist wunderbar, ich bin so gespannt, es zu benutzen!Freuen Sie sich auf Ihre unicode aktualisieren.
Posted by: Tablet PC | 10/06/2011 at 09:43 PM
I Think can't comparison of international economic, especially when only Germany and United State, this comprison need two or three big country again. http://homeequityloandallas.org/
Posted by: Home Loan | 10/17/2011 at 06:15 PM
What a cool place! I definitely understand why it inspired you. It's going to be so fun to read the stories!
Posted by: beach umbrella | 10/19/2011 at 07:55 PM
This idea will form a wonderful series that I look forward to very much. Great idea John!
Posted by: golf umbrella | 10/19/2011 at 07:55 PM
Thanks for writing this and thanks for the work you do to help these kids.
Posted by: folding umbrella | 10/19/2011 at 07:55 PM
Good points you make. The fact that he is still alive means that he can also be punished.
Posted by: children umbrella | 10/19/2011 at 07:56 PM
[url=http://www.bootsebay.net/]Stivali uomo[/url] , Molte persone chiedono la domanda effettiva ", che dire di sollievo per quanto riguarda le imposte federali è?" C'è un equivoco enorme che in realtà è oggi in relazione a fare quello.Il rispondere è che non c'è fiscale PREZZI Amnesty Process.Generally, quello che i contribuenti possono essere sentito parlare, quindi ottenerlo confuso con condono fiscale, è l'offerta entro Plan.So di compromesso perché non Amnesty per l'IRS? Il governo federale non vuole mettere un precedente per luogo mai perdonare un onere per debts.The ragione di ciò è semplice, la gente sarebbe in attesa fino al prossimo processo di amnistia carico fiscale prima di completare e biforcazioni Stati over.Most hanno implementato con successo onere fiscale corsi di amnistia, però, io chiaramente non si vede tutti i turni in posizione genuino l'IRS 'in un prossimo Programma future.The IRS che sarebbe più simile alla tassa programmi Amnesty sarebbero le Offerte con program.There compromesso sono tre tipi di offerte durante compromesso: Dubbi sulla Doubt esigibilità per gestione fiscale effettivo debito dubbio al programma di esigibilità è la soluzione migliore soluzione per la maggior parte dei contribuenti
Posted by: günstige ugg | 10/21/2011 at 08:37 PM
I have to say, I enjoy reading your blog. Maybe you could let me know how I can subscribing
with it ? Also just thought I would tell you I found your page through google.
http://www.sencart.com
Posted by: aimi | 10/28/2011 at 01:21 AM
Well this comparison isn't illogical either. Countries all over the world do it.
Posted by: Logo design | 11/14/2011 at 05:14 AM
this is really cool``thanks a lot`
Posted by: Tablet PC | 11/23/2011 at 03:18 AM
I find life an exciting business,The point is succinctness of expression.
Posted by: Moncler Doudoune | 11/26/2011 at 05:31 AM
Hey there! Dies ist eine Art off topic , aber ich brauche ein paar Ratschläge von einem etablierten Blog. Ist es schwer, deinen eigenen Blog? Ich bin nicht sehr techincal aber ich kann die Dinge herauszufinden, ziemlich schnell. Ich bin über das Erstellen von meinem eigenen Denken , aber ich bin mir nicht sicher wo ich anfangen soll . Haben Sie Ideen oder Anregungen? Prost
Posted by: CNA Training | 11/27/2011 at 11:54 PM
oh, it is great!wonderful post,ha.
Posted by: knockoff handbags | 12/02/2011 at 10:53 AM
German Chancellor Angela Merkel, whose country boasts the solidest economy within the 17-country bloc, said the decisions made at the summit will increase the credibility for thetitleist 910d2
titleist 910D3
Ping G20
Taylormade r11 Driver eurozone."I have always said the 17 states of the eurozone need to win back credibility. And I think that this can happen, will happen, with today's decisions," she said after the meeting.Prior to the summit, Merkel said the utmost aim of the talks was to restore "credibility." "The euro has lost credibility and this must be won back. We will make clear that we will accept more binding rules," she said.
Posted by: titleist 910d2 | 12/26/2011 at 09:33 PM
I am really interested to your Fashionable post. It is really impressive.
Thanks
"karnevalskostüme für Baby"
Posted by: karnevalskostüme für Baby | 01/15/2012 at 11:06 AM
Writing an essay or dissertation for your certificate requires that you speak to your audience (your professor) and use words that are familiar to him or her. If possible, write the essay or dissertation that is in their area of expertise.
Posted by: essay help | 02/28/2012 at 02:00 AM
Aotearoa New Zealand is so peaceful, man, baesuce of the positive vibes at festivals such as One Love and Parihaka. Like, everyone comes together, man, and celebrates the unity and the herb and, yeah, just real positive vibes and a choice of vegetarian nachos.
Posted by: Roman | 07/22/2012 at 04:16 PM
The local manufacturing canpomy that did it had 1 week a month layoff for employees. They got UE for that week. If you want to limit UE to 26-39 weeks, at 1 week/month, UE can last 2-3 years. I'm with you, that's much, much preferable to a layoff where there's no guarantee how long it might last and even if your job will be there when workers are called back. I think the biggest concern is not that canpomy's might abuse the system, but that employees will get to enjoyhaving a week break every month!
Posted by: Montserrat | 07/23/2012 at 04:34 AM