andrewducker: (Default)
andrewducker ([personal profile] andrewducker) wrote2011-12-22 11:00 am

[identity profile] gonzo21.livejournal.com 2011-12-22 01:09 pm (UTC)(link)
Interesting recap of the eurozone crisis. I had no idea German unions had unilaterally agreed to keep wages down.

[identity profile] drdoug.livejournal.com 2011-12-22 05:46 pm (UTC)(link)
saved from lowering wages

Hahahaha!

Wages in the UK went down 3.5% in the last year, and from memory they were down the year before as well, and possibly the one before that too. See e.g. http://www.guardian.co.uk/money/2011/nov/23/uk-household-earnings-fall

Or did you mean saved from lowering nominal wages? Which is indeed an important thing - it's becoming increasingly apparent in the current eurocrisis that nominal wages are very, very hard to lower.

But that's rather different from an unqualified "wages". Inflation does matter!

[identity profile] skington.livejournal.com 2011-12-22 01:54 pm (UTC)(link)
About 5-10 years ago, Germany's economy was in the shitter. Government, businesses and the unions agreed on a painful package of austerity measures that eventually rescued the economy, but did in Gerhard Schröder's government. This is one of the reasons why Germany doesn't particularly want to bail out any of the southern European countries without strings attached - they went through pain, why shouldn't others?

[identity profile] gonzo21.livejournal.com 2011-12-23 02:31 pm (UTC)(link)
I find it odd as well the amount of complaining being done by countries moaning about all the strings that come attached. Like... they expected the Germans to just give them limitless free money?