Reply to: German exports plunge

[AlfredJPruffock]

I blame Thatcher.

Can you imagine how many people would be on benefits here if you got 70% of your salary as dole money? And how many "economic migrants" / "asylum seekers" would be legging it down the Chunnel?

Its not as simple as that - first you have paid contributions to the social system for at least a couple of years - secondly you dont qualify if you resigned or were fired - to qualify you have to have been made redundant - and the benefit lasts for 6 months to a year.

Then you are survival money - or you find a job.

France has as many immigrants as the UK and its not a problem.

I think the reason Thatcher took it away - for the same reason that some people in London seem to like clothing that is slightly uncomfortable to wear ....

[DimPrawn]

It was Thatcher who removed Earnings Related Benefit from the UK back in 1980 - big mistake in my view.

I blame Thatcher.

Can you imagine how many people would be on benefits here if you got 70% of your salary as dole money? And how many "economic migrants" / "asylum seekers" would be legging it down the Chunnel?

[Mich the Tester]

None of my German possessions have collapsed, sunk, plunged, or let me down in any other way, except for one bottle of 1998 Deidesheimer Riesling Spätlese which was corked; luckily I had another bottle to hand, and it was exquisite.

[AlfredJPruffock]

Interesting point on the BBC site as to why France amnd Germany's economic recovery is more robust -

France and Germany have also benefited from what economists call automatic stabilisers.

Their social security systems are more generous than the UK's and this has provided more support to consumers.

It is one of the reasons why they argued they did not need to follow the UK with headline-grabbing measures to stimulate the economy.

What this means - if you lose your job in most EU states - then its not the end of the world - providing you have paid the social contributions - you will get appox 70 per cent of your take home for a year or so - that means you will not go from boom to bust - and it means that consumer spending remains healthy during a recession.

It was Thatcher who removed Earnings Related Benefit from the UK back in 1980 - big mistake in my view.

[BlasterBates]

This is just 1 quarter.

It is very likely that the next quarters are negative.

Do you still call BOOM?

why? that's not what I'm hearing.

Good news really.

[ThomasSoerensen]

This is just 1 quarter.

It is very likely that the next quarters are negative.

Do you still call BOOM?

[DimPrawn]

http://www.straitstimes.com/Breaking...ry_323551.html

"Mr Kraemer said the collapse in exports underpinned his bank's forecast that German output would decline by a record 2.0 per cent in the fourth quarter of 2008 from the previous three-month period. "

A 2% fall in the quarter. This is worse than the UK.
It turns out that an over reliance on exports is not a clever strategy when the gloabalised economy contracts at the same time.

http://news.bbc.co.uk/1/hi/business/8198766.stm

The French and German economies both grew by 0.3% between April and June, bringing to an end year-long recessions in Europe's largest economies.

Stronger exports and consumer spending, as well as government stimulus packages, contributed to the growth.

[sasguru]

That's true the UK depends on:

services

so that manufacturing decline doesn't matter too much

The point being that you could look at services in any country and see similar declines. Make no mistake everyone's going to hurt, but I seriously suspect that this downturn will cause a systemic decline in manufacturing in Europe.

The plain fact as I have pointed out previously is that you cannot pay people 30-40 Euro per hour to screw cars together. There's no value added there.

[BlasterBates]

That's true the UK depends on:

services

so that manufacturing decline doesn't matter too much

[AlfredJPruffock]

Sh**te Germany in trouble.

The only economy sinking faster is:

UK manufacturing output falls 2.9%

On the bright side that isn't as steep a fall as in the UK services sector.

BB for better or worse we barley have a manufacturing sector today.

Truth is that the EU remains our bigegst export market - but we dont manufacture much these days.

Thats been Eastern Euopre and of course Chinas job.

Go figure.

PS full marks for supporting your cause - the others seemed to have melted like snow on a spring day.

[Purple Dalek]

Well said that man.

I dont know about you , but Ive beeen quite astonished at the sheer level of defeatism expressed by some of the posters.

We should not forget not so long ago we had to fight and many sacrificed their very lifes to gain the freedoms we have today.

The freedoms we've had taken away...

[BlasterBates]

Sh**te Germany in trouble.

The only economy sinking faster is:

UK manufacturing output falls 2.9%

On the bright side that isn't as steep a fall as in the UK services sector.

[AlfredJPruffock]

Seriously though, if the Germans are this fooked, the PIIGS won't have anyone to pull them through. Watch the riots and civil unrest spread from Greece to the other weak economies as time goes on ...
Whereas if things get really bad here, I suspect the old Blitz spirit will be alive and well.

Well said that man.

I dont know about you , but Ive beeen quite astonished at the sheer level of defeatism expressed by some of the posters.

We should not forget not so long ago we had to fight and many sacrificed their very lifes to gain the freedoms we have today.

[darmstadt]

Russia screwed

China screwed

[sasguru]

Still making Stukas are they?

No but they've got plenty of under-utilised factories they can convert.