By James McKee
Despite the recent problems experienced by its EU counterparts the nation of Germany has brought about changes in its economy that have resulted in a sharp decline with regard to unemployment and an overall sense of prosperity. Possessing an unemployment rate of just over 7 percent compared to the US whose unemployment rate is above 10 percent certainly shows a difference both in methodology and implementation of fiscal policy. The country of Germany has time and again shown a vested interest in lowering interest rates on debt and lowering the debt itself.
Germany has aided many European nations recently including the ailing Ireland; however they have done so only after austerity measures are in place to discourage further economic problems. The Euro has not yet ascended in response to the news however changes will soon follow. With such a low unemployment rate Germany is beginning to seek qualified workers from elsewhere within the EU because there are so many jobs to go around. Such sentiment is something not present in the US or many other countries worldwide.
The lesson to be learned from Germany is that whether its an individual or an entire nation we cannot run away from our debt and must address the fiscal problems we encounter immediately without fear or reserve. Those on the forex currency exchange should take note of the direction Germany takes in the near future to preserve its economy and the subsequent fallout for the EU and the Euro. While many see the aid of Germany as conditional and at times too costly anything less would only serve to hinder the growth of these nations.
Many of the hardest lessons to learn are those that do not have an immediate consequence; by forcing countries such as Ireland to shoulder much of the responsibility that comes with a failed financial plan they are discouraging more of the same in the future.
About the Author
The author’s love of life is ultimately rooted in his drive to learn forex
