It’s true that Germans and Greeks work very different amounts, but not in the way you expect. According to the Organization for Economic Co-operation and Development, the average German worker put in 1,429 hours on the job in 2008. The average Greek worker put in 2,120 hours. In Spain, the average worker puts in 1,647 hours. In Italy, 1,802. The Dutch, by contrast, outdo even their Teutonic brethren in laziness, working a staggeringly low 1,389 hours per year.
If you recheck your anecdata after looking up the numbers, you’ll recall that on that last trip to Florence or Barcelona you were struck by the huge number of German (or maybe they were Dutch or Danish) tourists around everywhere.
The truth is that countries aren’t rich because their people work hard. When people are poor, that’s when they work hard. Platitudes aside, it takes considerably more “effort” to be a rice farmer or to move sofas for a living than to be a New York Times columnist. It’s true that all else being equal a person can often raise his income by raising his work rate, but it’s completely backward to suggest that extraordinary feats of effort are the way individuals or countries get to the top of the ladder. On the national level the reverse happens—the richer Germans get, the less they work.
Ross Douthat goes through the interesting exercise of translating what just happend to Italy into American terms, and in doing so underscores just how big the Eurozone shake up is:
The murmurs about Barack Obama being forced out began in Berlin and Beijing. After his party lost the midterm vote, there were hints that a government of technocrats would be imposed on America, to save the country from a debt crisis and the world from a depression.
As the debt-ceiling negotiations stalled out over the summer, a global coalition — led by Germany, China and the International Monetary Fund — began working behind the scenes to ease Obama out of the White House. The credit downgrade was the final blow: the president had lost the confidence of the world’s shadow government, and his administration could no longer survive.
Within days, thanks to some unusual constitutional maneuvering, Obama resigned the presidency and Michael Bloomberg was invited to take the oath of office. With Beijing issuing veiled threats against our currency, Congress had no choice but to turn the country’s finances over to the Senate’s bipartisan Gang of 6, which in turn acceded to Chinese and German “supervision” of their negotiations. Meanwhile, there was a growing consensus in Europe and Asia that only a true global superstate could prevent the debt contagion from spreading …
FOR Americans, the scenario I’ve just imagined is a paranoid fantasy, the kind of New World Order nightmare that haunts the sleep of black-helicopter watchers and Trilateral Commission obsessives.
As intensely frustrated as I get at the idiocy frequently shown by government here in the US, for truly high handed over the top governmental lunacy we can rarely compete with the Europeans:
This week alone has seen a ratings downgrade for Spain as well as a threat by agencies to review France’s AAA status — and the markets have taken notice. Once again, it would seem, ratings agencies are making things difficult for European countries.
European Internal Market Commissioner Michel Barnier is considering a move to ban the agencies from publishing outlook reports on EU countries entangled in a crisis, according to a report in Thursday’s issue of the Financial Times Deutschland newspaper.
In an internal draft of a reform to an EU law applying to ratings agencies obtained by the paper, Barnier proposes providing the new EU securities authority, the European Securities and Markets Authority (ESMA), with the right to “temporarily prohibit” the publication of forecasts of a country’s liquidity.
The European Commission is particularly concerned about countries that are negotiating financial aid — for example from the euro rescue backstop fund, the European Financial Stability Facility (EFSF), or the International Monetary Fund (IMF). A ban could prevent a rating from coming at an “inopportune moment” and having “negative consequences for the financial stability of a country and a possible destabilizing effect on the global economy,” the draft states. Continue Reading
I found this piece from the English-language edition of Der Spiegel by University of Hamburg economics professor Thomas Straughaar very interest, in part because it reads very much as written by someone who is looking at American history and culture from the outside, yet trying to understand it for what it is. A key passage from the second page:
This raises a crucial question: Is the US economy perhaps suffering less from an economic downturn and more from a serious structural problem? It seems plausible that the American economy has lost its belief in American principles. People no longer have confidence in the self-healing forces of the private sector, and the reliance on self-help and self-regulation to solve problems no longer exists.
The opposite strategy, one that seeks to treat the American patient with more government, is risky — because it does not fit in with America’s image of itself.