By Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (auth.), Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (eds.)
This booklet offers with supply-side economics and the wanted reorientation it is going to deliver to West German coverage. The switch, suggested after looking out research, might upload as much as an total procedure for releasing markets, for removal government-imposed distortions, and for utilizing free-market ways to right distortions imposed by way of strain teams. the method may pierce Germany's state-supported encrustations and corporatism. it will equip the rustic to stick with the lead of the U.S. and nice Britain in commencing to break out from the tangle during which taxes, rules, and unemployment have grown in step. the upcoming of entirety of the ecu inner industry in 1992 provides urgency to this task.
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Extra resources for A Supply-Side Agenda for Germany: Sparks from - the United States - Great Britain - European Integration
But also in Japan and France and even in Spain and 41 Portugal, have altered the competitive balance in favor of other countries. From the perspective of a transnational company with global operations, Germany has undoubtedly lost attractiveness as a production site. It is now increasingly regarded as a rigid high-cost country. Unless major reforms are taken fairly soon, Germany's problems are likely to be aggravated in the years ahead. One reason is the completion of the European Community's internal market by 1992.
I 8 6 4 : 2 o : : . e• • • • • • • • • • _.. ' -2 I 1971 73 75 77 79 I I 81 I 83 I 85 87 S= Saving (disposable income less consumption), all sectors I = Net investment, all sectors CA=Current account surplus Source: German Statistical Office, National Accounts FIGURE 1. ~ 36 shows the evolution over time of both the current account balance and the level of saving and investment as a percent of gross domestic product. In analyzing these data, three facts stand out: (1) Since 1985 the gap between saving and investment has reached unprecedented levels.
9-16. --Noelle-Neumann, Elisabeth, and Strtimpel, Burkhard, Macht Arbeit krank? , Munich and Zurich: Piper, 1984. , "The Economics Profession and the Making of Public Policy," Journal of Economic Literature, March 1987, 25(1), pp. 49-91. , Equality and Efficiency. : The Brookings Institution, 1975. 44 Olson, Mancur, The Rise and Decline of Nations, New Haven: University Press, 1982. und Manz: Koh1hammer, 1976. , The Zero-Sum Society: Distribution and Possibilities for Economic Change, New York: Basic Books, 1980.