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Will Germany's Government Crumble?

Ahlevah said:
I don't really want to derail the thread here, but let me ask you something. Kennedy cut taxes. Revenue grew. Reagan cut taxes. Revenue grew. Bush cut taxes. Revenue grew. High-paying manufacturing jobs, however, fled to Mexico and China. Americans are now set to end the decade with lower real incomes than they started the decade with. We have no net increase in employment in ten years. Wealth has become increasingly concentrated in this country while we have millions of households struggling to meet basic needs. Meanwhile, deficits grew--in spades. So my question is why would a wealthy German invest in Germany when he can get cheaper workers with a laxer regulatory environment in Eastern Europe or the Far East? Your argument looks liken the same supply-side crock Americans were sold thirty years ago: "If you build it, they will come." Yeah, investment would be unleashed, but where? :confused:
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Not knowing about deficits under Kennedy but

Reagan cut taxes and deficits grew (Debt to GDP grew increased by about 18%)

Bush 2 cut taxes and deficits grew (Debt to GDP grew increased significantly as well


As for investing in Germany


A large number of German companies are mid size, especially its manufacturing ones, plenty are still family controlled, BMW is controlled by the Quandt family, VW/Porsche is controlled by descendants of Porsche. Germany also has a large number of its states having interest in various companies and banks which does sort of provide incentive for the company to invest in Germany. Not to mention (if I recall correctly) that German unions typically have a seat or two on the Board of Directors in many companies that they work for.

Lastly but definately not the least

German workers who work for German companies that do any exporting are typically highly skilled, highly trained and put out generally high quality product that commands premium prices on the international market. This is why Germany is the number 2 exporter in the world, behind China
 
Eventually all so called Democratic Governments fail.
Largely because they are seen by their electorates as not performing the job to the electorates satisfaction.
 
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