Rackert so wie wir

by afew
Fri Jan 27th, 2012 at 09:39:46 AM EST

"Rackert so wie wir - Work hard like us" is, according to Ernst Elitz in Bild Zeitung, Angela Merkel's advice to the indebted of Europe (h/t Eurointelligence). In France, it's a deeply-held article of faith that Germans are hard-working, while the insecure French are not so sure that they themselves are. The right plays on the theme incessantly, to provide cover for the usual "necessary structural reforms", but also, at the moment, for electoral reasons. It's not Sarko's fault if the French economy is on the blink: on the international front, there's a crisis, and, on the home front, everything that has gone wrong is the fault of the Socialists.

Yes, a whole decade of the right holding the presidency and both chambers, with Sarkozy as N° 2 of the government for five years and president for five more, has been crippled by the legacy of that Jospin government that had neither the presidency nor the Senate on its side. And particularly, the evil 35-hour working week has destroyed the French economy - this has been the retrograde French employers' union warhorse for years. An employers/conservative think tank called Coe-Rexecode, close to the Paris Chamber of Commerce and Industry, came out recently with a killer report that showed that the French didn't work as long hours as the Germans (or, indeed, most others in Europe), that working hours had diminished in France faster than in Germany since 1999, and that Germany had succeeded in creating jobs while raising GDP and purchasing power per capita. German success (inspired by economic-liberal "reforms"), French failure (caused by ruinous leftwing policies). Rackert so wie wir!


Two economists from an independent group, the economic research centre of Sciences Po (OFCE), recently published a paper entitled Durée du travail et performance économique - Quels enseignements peut-on tirer du dernier rapport de Coe-Rexecode (Working hours and economic performance – What lessons can be drawn from the latest Coe-Rexecode report?). The paper recognizes the considerable attention paid by the Rexecode researchers to the thorny question of international comparisons on working hours. It goes on to outline Rexecode's options in the attempt to reach a proper assessment:

  • the best comparative statistic is the effective annual duration of work, excluding holidays and sick leave (the OFCE authors agree)
  • the data to base the calculation on should come from the Labour Force Survey, not from employers' official payroll returns
  • the population to assess should be that of fulltime salaried workers only, excluding part-time workers and non-salaried workers

The OFCE authors (Eric Heyer and Mathieu Plane) point out that the Labour Force Survey (LFS), based on declarations to national statistics personnel of a sample of the working-age population, though (supposedly) run according to Eurostat standards, notoriously produces variable overstatements of work duration, introducing a systematic bias both in time series and country series, that is not homogenous and cannot be controlled for. (Note by afew: One might also wonder why a think tank close to bosses' unions should not trust employers' official declarations of hours worked...).

The choice of fulltime salaried workers only, say Heyer and Plane, leads to the conclusion that effective working hours are longer in Germany than in France (whether one looks at the LFS or payroll declarations). But the inclusion of part-time workers produces a different conclusion, since short-hours part-time work occupies a much larger place in German employment than French: the LFS still gives a longer annual duration in Germany, but the employers' payroll declarations give the reverse.

Which, though Heyer and Plane don't say it in so many words, points up the cherry-picking in the Rexecode report. Run all the numbers, identify the restrictions and exclusions that allow you to reach the desired conclusion, then – this is Rexecode's "seriousness" guarantee – order up the statistical work from Eurostat according to specs.

Conclusion, insofar as there is one: trans-country comparisons are in fact difficult to establish; there is no clear evidence that the French work less than the Germans, or indeed than a number of other Europeans.

Heyer and Plane then look at Rexecode's contention that working hours have gone down faster over the past decade in France than elsewhere in Europe. Once again, Rexecode use the LFS, and fail to communicate a major problem: French statistics agency INSEE changed methodology in 2003, from an annual to a continuous survey, resulting in a considerable break in continuity.

Dynamic analysis over the whole period is fallacious – yet Rexecode go ahead and count the decline in French working hours from 1998 to 2010 without considering the methodological break. As Heyer and Plane point out, annual working hours have declined much faster in Germany than in France since 2003.

Next on the list: employment. Heyer and Plane take Rexecode's data, based on the LFS (more dependable on jobs than on real work hours) and show that they demonstrate two things: one, that job creation in France has been more dynamic since 1999 than in most major European countries, (twice as dynamic as Germany), and that this creation has mostly been of fulltime jobs – whereas in Germany (and the Netherlands), job creation has been heavily dependent on part-time jobs:

1. The right-hand column shows the contribution to total employment increase, of part-time jobs occupied by people who say (LFS) they really want a fulltime job.
2. The greater than 100% contribution of part-time (second column) in Germany (Allemagne) and the Netherlands (Pays-Bas) reflects a decrease in fulltime jobs (!) of -11.3% in the Netherlands and -2.4% in Germany.
3. Meanwhile, France has created more fulltime posts and depends much less on part-time, and particularly unwanted, part-time.

GDP growth: the Rexecode report does not underline that total GDP growth over the 1999-2010 period was 13.1% for Germany, 16.1% for France – but prefers to concentrate on GDP per capita, +13.5% in Germany, +7.3% in France. Conclusion, German success story.

But the difference lies in the demographics: German total population decreased over the period by 0.4% while French rose by 7.3%. And also (German success story?) in mercantilism:

La période 2006-2010 a surtout été celle de l’arrivée à maturité des politiques de désinflation compétitive mises en place en Allemagne (réformes Hartz, TVA sociale…) dont les effets ont joué à plein de 2006 à 2008. Cette politique allemande a entraîné une baisse des parts de marché des autres grands pays de la zone euro au profit de l’Allemagne. Cette politique « non coopérative » a entraîné une baisse relative du PIB par tête relatif de la France, de l’Espagne et l’Italie. (Heyer et Plane, p.5)

(The 2006-2010 period saw above all the ripening of the competitive deflation policies applied in Germany (Hartz reforms, VAT increase...), the effects of which came fully into play between 2006 and 2008. This German policy resulted in a decrease in market share of the other major eurozone countries in favour of Germany. This "non-cooperative" policy caused a relative fall in GDP per capita in France, Spain and Italy. )

Finally, Rexecode contend that German success is demonstrated by a rise in individual purchasing power, equal to the rise in GDP per capita. Heyer and Plane point out that there is no such equivalence.

Ce raisonnement ne tient pas compte de l’évolution du partage de la valeur ajoutée. Or, la politique allemande, en compressant les coûts salariaux, a permis d’augmenter fortement les taux de marge des entreprises allemandes. Les gains de compétitivité des entreprises allemandes se sont fait au détriment de la dynamique des salaires et du pouvoir d’achat des ménages, ce qui n’a pas été le cas en France où le partage de la valeur ajoutée est resté relativement stable au cours de la dernière décennie.

(This reasoning ignores change in the share of added value. But German policy, by compressing wage costs, enabled a strong increase in German businesses' margins. The competitiveness gains of German businesses were accomplished to the detriment of wage dynamics and household purchasing power, which was not the case in France where the share of added value has remained relatively stable over the past decade.)

In all, a good rebuttal of conservative spin (Coe-Rexecode made a similar effort before the presidential elections in 2007), but more than that an interesting peek beneath the skirts of German "success".

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An additional point to note is that the average part-time worker in Germany puts in fewer hours a year (880 according to the LFS, 847 according to payroll declarations), than in France (985 LFS, 940 payroll).

The recent improvement in Germany's unemployment rate is down to part time and short hours. (Wages and job security, don't ask...).

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jan 27th, 2012 at 09:55:22 AM EST
That is an over-statement.

According to the last report (november):

>In the year-over-year comparison full-time employment in jobs subject to social security was 369,000 or
1.6 percent better than last year and part-time employment subject to social security by 325,000 or 6.0
percent.>

http://statistik.arbeitsagentur.de/Statischer-Content/Arbeitsmarktberichte/Labour-Market-Germany/Gen erische-Publikationen/Labour-Market-Germany-201111.pdf

(page 3)

So half of the improvement is part-time, half isn't.

by IM on Fri Jan 27th, 2012 at 12:34:05 PM EST
[ Parent ]
You are forgetting the jobs below the social security threshold.
by Katrin on Fri Jan 27th, 2012 at 12:45:43 PM EST
[ Parent ]
I didn't. In my opinion that is not really employment.

>Die Zahl der ausschließlich geringfügig entlohnt Beschäftigten hat abgenommen. Nach ersten Hochrechnun-gen der Bundesagentur für Arbeit betrug sie im Oktober 4,85 Mio, das waren 33.000 oder 0,7 Prozent weniger als vor einem Jahr.>

The number of marginally employed was 4,85 mill. in october and declined year on year 33,000.

So it seems the rise of marginally employed, that is employment not reaching the social contributions threshold, ha stopped now.

http://statistik.arbeitsagentur.de/Statischer-Content/Arbeitsmarktberichte/Monatsbericht-Arbeits-Aus bildungsmarkt-Deutschland/Monatsberichte/Generische-Publikationen/Monatsbericht-201112.pdf

by IM on Sat Jan 28th, 2012 at 07:24:02 AM EST
[ Parent ]
Completely agree that it's not really employment and a good thing if it's on the decrease. But 4.85 million "employed" whose employers don't pay social security is still a lot!
by Katrin on Sat Jan 28th, 2012 at 01:32:46 PM EST
[ Parent ]
I tried to get other numbers on the recent past, but could only get another year: in october 2010 year on year employment growth was 498,000. 283,000 full time and 208,000 part time.

So in the recent past - since 2006 or 2007 or so, at least a part of reduced unemployment was full-time employment.

by IM on Fri Jan 27th, 2012 at 01:14:50 PM EST
[ Parent ]
I have an Excel file from Eurostat with the full LFS time series from 1999 to 2010. I'll get back to it.
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jan 27th, 2012 at 02:17:24 PM EST
[ Parent ]

(The year-on-year calculations are mine)

There was obviously a bump in part-time job creation in mid-decade. But most of the time, fulltime jobs have been on the decrease or flat.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jan 27th, 2012 at 03:06:50 PM EST
[ Parent ]
So more full-time jobs in 2007, 2008 and 2010. And according the numbers I cited, in 2011.

Not in 2009, while part-time jobs gained even then.

So the conventional impression that there a kind of turn around in job numbers starting in 2006 or 2007 is not wrong.

by IM on Sat Jan 28th, 2012 at 07:28:23 AM EST
[ Parent ]
That is a report year-on-year from November 2010 to November 2011.

The Rexecode report (confirmed by the OFCE paper) looks at the period 1999-2010, on the basis of the Labour Force Survey.

I've just checked the numbers from the German LFS at Eurostat. They are:

  • Total employed fulltime, 1999 : 29.089 mn

  • Total employed fulltime, 2010 : 28.382 mn

Difference: -707,000 or -2.4%

  • Total employed part-time, 1999 : 6.654 mn

  • Total employed part-time, 2010 : 9.690 mn

Difference: +3.036 mn or +45.6%

This confirms the observation that fulltime jobs in Germany have decreased while part-time work has greatly increased, accounting for all the rise in total employment since 1999.

Most of the part-time jobs have gone, as we might expect, to women - +2.164 mn over the period, compared to +872 600 for men.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jan 27th, 2012 at 01:36:03 PM EST
[ Parent ]
>That is a report year-on-year from November 2010 to November 2011.>

Said I something else?

To make my point somewhat better LFS on full-time:

2006 Q3:  27.653,5

2011 Q3: 29.154,6

part-time:

2006 Q3: 9.231,9   

2011 Q3: 10.069,8

That is a gain of 1.4 mill full-time and 800,000 part-time jobs. I used the third quarter because these are the latest numbers.

by IM on Sat Jan 28th, 2012 at 07:47:52 AM EST
[ Parent ]
Can anyone explain the fetishisation of work in capitalist economies?

It's an extremely strange and perplexing phenomenon.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Jan 27th, 2012 at 11:20:56 AM EST
David Graeber in his Debt: the First 5,000 years argues that the conceptual basis of capitalism is slavery, a fact that modern capitalist societies spend a lot of effort running away from.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 11:26:32 AM EST
[ Parent ]
I really must buy that book.
by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Jan 27th, 2012 at 11:45:07 AM EST
[ Parent ]
See here for a teaser.
This helps to explain something really strange about our property law, which is derived from Roman law and has created terrible problems for jurists starting in the eleventh century. Our definition of property is that property is a relation between a person and a thing, whereby that person has absolute power over that thing. This definition doesn't make sense. For example, if you're on a desert island, you might have a deeply personal relationship with a tree on that island. You might well be talking to it every day. But do you `own' it? Well, it's kind of an irrelevant question unless someone else is there. In fact, property rights are relations, or arrangements, between people, about things.

Our notion of freedom is similarly problematic. `Freedom' is the natural power, according to Roman law, to do absolutely anything you like - except for those things you can't do, either because of the law or because somebody's going to stop you. This is like saying that `the sun is square except insofar as it is round'. And people immediately pointed this out: by this definition, everyone is `free'. Slaves are `free' - after all, they can do anything they want except for those things they can't do. So why did they develop this absurd definition?

The reason is that what Roman magistrates were imagining was in fact a relationship between two people of total power, which therefore renders one of them a `thing'. That's what slavery is all about. So you had this subtle shift in the meaning of freedom. Originally freedom meant `not being a slave', and so referred to people who had social relations. In fact the word `free' in English traces back to the same root as `friend' - free people are, as noted before, people who can make commitments and promises to others, which of course slaves cannot do. But then the definition shifts, so that it now refers to the power of the slave-owner. A `free' person becomes a person who has people they can do anything they want to, or who approaches the world as a set of properties in the same way - someone who has a personal private domain, within which they can do whatever they like. This definition has the advantage of not suggesting that freedom is unlimited except insofar as it is circumscribed. But it brings all these deeply perverse and contradictory notions into it: that freedom is not a product of social relations, but is in fact the negation of social relations. That has had a deeply insidious effect on how we look at the world.



tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 12:03:54 PM EST
[ Parent ]
Migeru:
But then the definition shifts, so that it now refers to the power of the slave-owner. A `free' person becomes a person who has people they can do anything they want to

That later definition is in Herodotus too. Free are those who take slaves, un-free are those that are taken as slaves. I suspect Graeber is wrong about the order here, there is no point of defining "free" as not-slave unless there are slaves about.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Fri Jan 27th, 2012 at 04:40:16 PM EST
[ Parent ]
But slaves are about because there are war prisoners, as he explains elsewhere in the linked texts.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 05:37:38 PM EST
[ Parent ]
There I get for commenting before reading the book :)

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
by A swedish kind of death on Fri Jan 27th, 2012 at 05:51:40 PM EST
[ Parent ]
Or the teaser interview I linked to elsewhere in this thread.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 06:03:59 PM EST
[ Parent ]
Now I have at least read the teaser and might better explain what I meant.

ZCommunications | Debt, Slavery and our Idea of Freedom (Part 1) by David Graeber | ZNet Article

That was something I had been vaguely aware of, but I hadn't realised, until I began researching, just how flagrant it was. In most human languages, the word for `freedom' means `the opposite of slavery'. Moses Finley pointed out a long time ago that it's not a coincidence that doctrines of political liberty tend to emerge from places where they have the most extreme forms of chattel slavery, whether it's ancient Athens or colonial Virginia, where Thomas Jefferson came from. But this is true on a much more profound level than I had ever imagined. In most societies a slave is essentially like the living dead: as a social person they've been killed. The idea is that they are someone who was captured in battle, their captive decided not to kill them (which he would have had every right to do), so essentially their previous life is gone and all they have left is a relation of total subordination to the person who was within his rights to kill them.

I suspect Graeber does not go far enough here, which is why he ends up with an "Originally freedom meant `not being a slave', and so referred to people who had social relations" and then "the definition shifts, so that it now refers to the power of the slave-owner". I suspect that free always meant being in the class that held slaves, in effect the winners side that got to take slaves. At least that is how I read Herodotos usage of word, and him writing in the 5th century BC he predated most of what we know of Roman history and culture.

Now I have to read the book to see if he backs that claim of an original meaning up and if so how.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Sat Jan 28th, 2012 at 05:26:28 PM EST
[ Parent ]
It's outstanding. It gets 10 out of 10 stars from me just for the author's ability to step outside the dominant narratives of our world.

you are the media you consume.

by MillMan (millguy at gmail) on Fri Jan 27th, 2012 at 05:51:50 PM EST
[ Parent ]
... All of these things have been shaped much more by violence and military operations than we'd ever imagine, to the point where I think we're going to have to start thinking in dramatically new terms to even come up with a realistic idea of what a free society would be like. If "freedom" is the ability to make real promises, then, what sort of promises would free women and men make to one another? How would they be kept? We hardly know what it would even mean to start asking these questions, but in order to find out, we need to clear away a lot of the conceptual legacy of millennia of war, slavery, and debt, that keeps us from being able to find out. That's not the explicit message of the book, but it's one of the things I was really trying to convey.
(Graeber)

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 05:56:37 PM EST
[ Parent ]
That is actually the question that comes to mind when reading the comment threads in this diary. basically, you can't have a guaranteed living income because:
  1. inflation
  2. work ethic
  3. what people get paid for is not useless because they get paid for it
and then some very provocative comments from Linca particularly challenging the social assumptions about work.


tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 12:14:41 PM EST
[ Parent ]
At least that's the case with me. I didn't really look at my rather over-developed 'work ethic', until I was close to retirement. Now I look back and regret a lot of missed time with family and friends - not to mention the vacation trips to Europe and such that I didn't take (first trip at age 63).

Of course my grandchildren taught me a lot about how much I missed with my kids. Fortunately, my immediate progeny seem to have learned from my mistake.

At any rate - excellent article, afew. Makes me wish more than usual that ET had a large presence in European media.

paul spencer

by paul spencer (spencerinthegorge AT yahoo DOT com) on Fri Jan 27th, 2012 at 01:01:05 PM EST
[ Parent ]
Germany went from being the sick man of Europe into the expoert powerhouse of today by turning a small current account deficit into a massive current account surplus. It did this by stagnating salaries for 10 years. It has nothing to do with "working hard". And the euro periphery cannot get out of the hole by "working harder" unless Germany eliminates it's CA surplus and starts importing periphery goods en masse, not unless the Eurozone as a whole is to run a CA surplus. But if so, who then will import euro goods? And how should the euro periphery return to competitiveness without devaluations/core inflation/euro depreciation? By suffering through 10 years of stagnating/falling nominal salaries, while at 20+ % unemployment?

Something will have to give, eventually. Just sayin'.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Fri Jan 27th, 2012 at 01:10:15 PM EST
It really should not be this hard to talk the germans into consuming more. I mean, what europe needs is for the typical german cashier, cleaning lady ect to be paid more (Industry wages are actually fairly in line with german productivity. the service sector pays shit) and lark off on holiday to greece/ect once a year.
How is this not the easiest sell in the history of politics?
"Comrades, we must party harder!"
by Thomas on Fri Jan 27th, 2012 at 01:50:38 PM EST
[ Parent ]
I spoke to some German friends (economists) about that idea. The response was something along the lines of "no, that would be a disaster, we must work harder, current account deficits have nothing to do with the crisis, the periphery nations must work harder at lower salaries too, just like we did."

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Fri Jan 27th, 2012 at 01:59:16 PM EST
[ Parent ]
Good medicine is bitter.
by Katrin on Fri Jan 27th, 2012 at 02:09:00 PM EST
[ Parent ]
And suffering is virtuous. We must now repent for past sins overspending with a really deep cathartic episode in purgatory recession. Running our factories at half output for so long will appease the angry gods of the Market.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Fri Jan 27th, 2012 at 02:27:50 PM EST
[ Parent ]
Exactly. And when the lazy Greeks have learned their lesson and are becoming virtuous it is time for the next round in Germany...

People tend to forget that every race to the bottom has a predictable end: hitting the bottom.

by Katrin on Fri Jan 27th, 2012 at 02:33:55 PM EST
[ Parent ]
current account deficits have nothing to do with the crisis

Yeah, and Spain didn't run budget surpluses and lower its public debt to 40% of GDP by 2007 while Germany kept its debt above 60% for the whole decade.

I believe this is called "the fiscalization lie" and it is popular because it is self-serving.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 05:39:45 PM EST
[ Parent ]
In all fairness though, while they are ph.d. students, macro is not their area.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Sat Jan 28th, 2012 at 03:10:17 AM EST
[ Parent ]
You are being kind. It really should not be beyond the understanding of anyone who went through high school in ANY specialty to grasp that there is no way to break down zero into a sum of positive figures of which at least one is not nil.

That the sum of mutual trades nets down to zero is not particularly challenging either.

And if anyone has failed to think through even something as simple as that, it would be wise to simply avoid commenting -something that PHD students should be sensitive to. You'll be surprised how often I fail to give a definitive advice about insects taxonomy. Or even about microbiology, or statistical physics, fields in which I actually hold a degree.

This is not to say that your friends are not nice people. But I remain baffled by how easily macroeconomics get treated like a religion -even by economists.

"Few can believe that suffering, especially by others, is in vain. - Galbraith"

by Cyrille (cyrillev domain yahoo.fr) on Sat Jan 28th, 2012 at 12:36:06 PM EST
[ Parent ]
It should seem like a reasonable proposition. But the whole point of competitive deflation is to reduce unit labour costs, ensuring lower prices for goods, while depressing domestic demand so that the country's productive effort goes into export. Added value goes into a much smaller number of pockets.
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jan 27th, 2012 at 02:15:27 PM EST
[ Parent ]
That Turkeys don't vote for Christmas is one of the oldest lies in politics.

Wait this is important. Someone is wrong on the Internet.
by generic on Fri Jan 27th, 2012 at 02:42:18 PM EST
[ Parent ]
Dulce et decorum est pro patria mori
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jan 27th, 2012 at 03:08:59 PM EST
[ Parent ]
I.. dont think it works out well even for the people at the top, selling products into an eternal trade surplus via vendor finance means that the vendor loans must, in the end go bad, and those are held by capital.  
What we really need is a pithy reframing of the debate that convinces (german) voters that excessive wage restraint is a bad idea.
"You cannot have a wealthier nation without wealthier workers"?
by Thomas on Fri Jan 27th, 2012 at 03:02:11 PM EST
[ Parent ]
You would seem to be right, with the debt/credit/trade imbalance/currency crisis Europe is - I was going to say undergoing, but fostering would be a better term. But the lenders are making it clear they want every last pfennig. They can't imagine losing out.

If they insist, of course, the people at the top will begin to feel the pain, because exports within the eurozone will fall off seriously. Though they've got a nice flexible handle on the situation, with all those short-hours part-time jobs that can be shucked off.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jan 27th, 2012 at 03:22:28 PM EST
[ Parent ]
Henry Ford got it:

Henry Ford - Wikipedia, the free encyclopedia

Ford announced his $5-per-day program on January 5, 1914, raising the minimum daily pay from $2.34 to $5 for qualifying workers. It also set a new, reduced workweek, although the details vary in different accounts. Ford and Crowther in 1922 described it as six 8-hour days, giving a 48-hour week,[27] while in 1926 they described it as five 8-hour days, giving a 40-hour week.[28] (Apparently the program started with Saturdays as workdays and sometime later it was changed to a day off.)

Detroit was already a high-wage city, but competitors were forced to raise wages or lose their best workers.[29] Ford's policy proved, however, that paying people more would enable Ford workers to afford the cars they were producing and be good for the economy. Ford explained the policy as profit-sharing rather than wages.[30] It may have been Couzens who convinced Ford to adopt the $5 day.[31]

But then again we are not run by industrialists anymore, are we?

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Fri Jan 27th, 2012 at 04:48:47 PM EST
[ Parent ]
That is not Swabian housewife morality.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 05:35:30 PM EST
[ Parent ]
Unionization grade is much higher in manufacturing then in services. And that I think explains most of the difference.
by IM on Sat Jan 28th, 2012 at 07:51:39 AM EST
[ Parent ]


tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Jan 27th, 2012 at 05:57:25 PM EST
At last someone got it...
by afew (afew(a in a circle)eurotrib_dot_com) on Sat Jan 28th, 2012 at 05:44:46 AM EST
[ Parent ]
The International Labour Organization has just published its annual outlook: Global Employment Trends 2012: Preventing a deeper jobs crisis (pdf). Since it's too dense to summarize and a pain to copy-paste 2-column text, I'm reproducing Box 4, p 45, as an image:


I heard this reported this morning on France Inter radio - the first time I've heard a "serious" reference to German internal devaluation as the cause of the euro crisis.

by afew (afew(a in a circle)eurotrib_dot_com) on Sat Jan 28th, 2012 at 05:56:23 AM EST


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