Economical Analysis: Germany

Germany’s economy is the largest in Europe and holds the most people (second only to Russia). They are the fifth largest economy in the world. They are the chief exporters of machinery, vehicles, chemicals, and household equipment. The Germans also have one of the most technically advanced telecommunications systems. The economic philosophy of Germany before 1800 was heavily rural, with some urban trade centers. In the late 19th century, it began a stage of rapid economic growth and modernization, led by heavy industry.

By 1900, it had the largest economy in Europe, a factor that played a major role in its entry into World War I and World War II. Devastated by World War II, West Germany became an “economic miracle” in the asses and asses with help of the Marshall Plan. Currently it is the largest individual economy in the EX. with GAP of roughly 3 trillion USED. The Germans proudly label their economy a “socialize Mortifications,” or “social market economy,” to show that the system as it has developed after World War II has both a material and a social? or human?dimension.

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They stress the importance of the term “market” because after the Nazi experience they wanted an economy free of state intervention and domination. The only state role in the new West German economy was to protect the competitive environment from monopolistic or oligopolies tendencies?including its own. The term “social” is stressed because West Germans wanted an economy that would not only help the wealthy but also care for the workers and others who might not prove able to cope with the strenuous competitive demands of a market economy.

The term “social” was chosen rather than “socialist” to distinguish their system from those in which the state claimed the right to direct the economy or to intervene in it. Beyond these principles of the social market economy, but linked to it, comes a more traditional German concept, that of Orotund, which can be directly translated to mean order but which really means an economy, society, and policy that are structured but not dictatorial. The founders of the social market economy insisted that Denned in Redounded?to think in terms of systems of order?was essential.

They also spoke of Orderliness because the essence of the concept is that this must be a freely chosen order, not a command order. Over time, the term “social” in the social market economy began to take on a life of its own. It moved the West German economy toward an extensive social welfare system that has become one of the most expensive in the world. Moreover, the West German federal government and the states (L¤ender ; sing. , Land ) began to compensate for irregularities in economic cycles and for shifts in world production by beginning to helter and support some sectors and industries.

In an even greater departure from the Reheard tradition, the government became an instrument for the preservation of existing industries rather than a force for renewal. In the asses, the state assumed an ever more important role in the economy. During the asses, Chancellor Helmut Kohl tried to reduce that state role, and he succeeded in part, but German unification Economical Analysis: Germany By seismometers Thus, the contradiction between the terms “social” and “market” has remained an element for debate in Germany.

Given the internal contradiction in its philosophy, the German economy is both conservative and dynamic. It is conservative in the sense that it draws on the part of the German tradition that envisages some state role in the economy and a cautious attitude toward investment and risk-taking. It is dynamic in the sense that it is directed toward growth?even if that growth may be slow and steady rather than spectacular. It tries to combine the virtues of a market system with the virtues of a social welfare system.