The German economy has taken off in the midst of crisis and decision model for other capitalist economies continue to struggle with the crisis.

Many economists in the United States came to focus on Southeast Asian economies where they saw success models. But now, Germany is providing another paradigm of excellence and the U.S. should take note, says James Moreland today in the journal Economy in Crisis .

Income distribution in Germany from 2010-2013

The income and wealth of Germany are better distributed than in the U.S., by the great disparity that exists in this country, accentuated since 2010. In this sense, the German economy grew by 3.6 percent compared with 2.8 percent in the United States. Factory output in Germany also is about twice that in the United States, while at the same time the average salary for a German factory worker is fifty percent (50%) higher than it is in the U.S.. Do not forget that Germany also has trade surplus today. The question is how this situation has reached Germany, while other capitalist countries are still struggling.

German model of capitalism 2013

According to Moreland, the German model of capitalism is very different from the United States. In Germany, many companies are still private property, eliminating the need to be reassuring to shareholders. Moreover, while funding comes from U.S. capital markets in Germany local banks finance the operations of small and medium enterprises, which make up the majority of German production.

Germany's Economy Minister Roesler attends the annual meeting of the World Economic Forum in Davos

Employee involvement in the management of companies in Germany

Another important difference concerns the participation of employees in companies, especially large ones. In Germany are required by law to have equal representation on the boards, both managers and workers. This requirement ensures that the rights and jobs of workers are protected when making decisions about where and what to produce. This does not mean, for example, that does not change the fate of jobs, but it does ensure that good jobs remain in the place where they will be most beneficial for the company and long-term workers, and they will not be for elsewhere by gains resulting short term.

To rescue the European recession

Moreover, when the recession took its toll on all of Europe , Germany has not squandered his income rescue executives of large corporations. Instead, these funds went to a wage subsidy for some workers, in order to not lose their jobs, thus stimulating the economy and by the way, ensuring that skilled labor that continue to keep their jobs.

Conclusions to take the example of the German model

Certainly the economic model German is not perfect, but there are lessons to be learned, as the focus for long-term growth and strong support for workers in business relationships. In short, More land concludes when workers have money in their pockets and safety, a strong economy can not be far behind.