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Germany

Germany. A Model of Economic Growth. Ideological Institutions and the German Economy. A focus on the emergence of the Social Market Economy. National Socialist Germany. Egalitarian model at odds with western social hierarchies “The common good takes precedence over that of the individual”

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Germany

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  1. Germany A Model of Economic Growth

  2. Ideological Institutions and the German Economy A focus on the emergence of the Social Market Economy

  3. National Socialist Germany Egalitarian model at odds with western social hierarchies “The common good takes precedence over that of the individual” A top-down approach Omnipotent executive powers Service to the Fatherland Utilized as a means of mobilizing massive armies

  4. Defeat and Division Defeat of the Third Reich crushed German faith Occupation brought with it foreign ideology West - A parliament founded on compromises between center-left and center-right moderates. Supported by the Western bloc East - Communist authoritative power operating as a satellite soviet state

  5. Federal Republic 1951 - Ludwig Erhard and liberal collaborators introduces the idea of a Social Market economy Competitive advantages of free enterprise with negligible states intervention Stability and security of social security and controlled growth Seeked to unify protestant, catholic and socialist ethics behind liberalism

  6. The German Social Market Economic Model Construction of a market economy on an ethical basis All social, ethical, cultural and human values are more important than the economy Interventionism and collectivism suppresses the individual and impedes his ability to recognize transcendent human values

  7. Secret Memorandum "The task of the state is not to run the economy, but to provide the necessary legal and institutional framework for its proper functioning under the rules of law. To define the role of the state will be one of the most important problems of the post–war economy." Ludwig Erhard

  8. Economic Institutions A focus on specific policies, reforms, and major economic events

  9. Social Market Economy – Hierarchy and Function • Chancellor • Minister of Finance • Minister for Economy • The Federal Cartel Office • (The Bundeskartellamt)

  10. Labour Reforms The Hartz Concept Unemployment Hartz I & II Hartz IV

  11. European Union The Euro Political and economic weight World’s largest exporter

  12. 2008 Eurozone Crisis “The Austerity Dictator” German products become cheaper German image from the past

  13. Kurzabeit Short-work program Training Programs Up to 1.5 million employees

  14. Technology A focus on the training and methods of the German workforce

  15. Technology Knowledge on how to do things Available skills and labour force Land and natural resources available Components of Technology

  16. Germany’s Economy Economy grew by 0.7% in 2012 Leading country in sustainability development Siemens (sustainability company)

  17. The German Manufacturing Success Close relationship  financial and industrial sectors Innovative industrial relations Vocational Schools

  18. Natural Resources / Energy Production Few natural resources A major producer of bituminous coal and brown coal Relies principally on fossil fuels as sources of energy

  19. Knowledge Training Upper secondary students attend apprenticeship or vocational school Ambition and talent will lead to job 3-4 years after high school job training, guaranteed full time job High productivity and efficiency (maximizing labour force with low unemployment rate)

  20. Unemployment Rates

  21. Available Skills of Labour Force

  22. Labour Force Statistics In 2011 87.7% of the people aged between 25 and 54 were in the labour force The employment rate of German youth in 2011 was 48%

  23. Social Institutions A focus on the public sector

  24. Overview “Germany considers itself a welfare state that considers social protection of all its citizens as a priority” 26.7% of the country’s gross domestic product is channeled into public welfare spending

  25. Unity Strong Sense of Community (95% vs. 91%) Civic Participation (3/4 of youth) Voter Turnout (78% vs. 73%)

  26. Education • Dual-track education system • Kindergarten • Elementary School • Gymnasium • Realschule • Hauptschule • Berufsschule • Gesamtschule

  27. Education

  28. Health Care

  29. Health Care Largest employment sector Strong emphasis on health care availability 2007 reform Health Insurance or "Krankenversicherung" is mandatory in Germany

  30. Health Insurance • Statutory Health Insurance • “Gesetzliche Krankenversicherung (GKV)” • < 3975 Euros • Private Health Insurance • “Private Krakenversicherung (PKV)” • > 3975 Euros • Self-employed • Civil servant

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