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It might surprise you, but history didn't start in 2002 or 1999.

Indeed. The recent episode of (West-)German mercantilist wage suppression began in 1991.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 18th, 2012 at 09:44:55 AM EST
[ Parent ]
Speaking of 1991, if German "solidarity" was compatible with the destruction of the East German economy, a fortiori there's no problem with doing the same with the Eurozone doing the same to Greece.

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 Sat Feb 18th, 2012 at 09:47:12 AM EST
[ Parent ]
The same and worse.
by Upstate NY on Sat Feb 18th, 2012 at 10:28:03 AM EST
[ Parent ]
Which could have been avoided if East German salaries and fortunes had been repressed, by for example swithcing 2 Eastmarks for 1 Deutschmark.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Feb 20th, 2012 at 01:11:36 PM EST
[ Parent ]
True, but if the Bundesrepublik had had even a half-assed industrial policy for the East, the salaries would have recovered in short order.

The fortunes would not, of course. My heart bleeds for them.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Feb 20th, 2012 at 02:25:12 PM EST
[ Parent ]
Sure, I agree. Salaries would have climbed back up at the pace East German industry had modernized, just like in Poland, Czech republic and so on.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Feb 20th, 2012 at 02:29:41 PM EST
[ Parent ]
'Ways and ways' are a matter of priorities. Who takes the hit. The wealthy or the workers? Germany wanted to reunify, but not at the expense of the wealthy and powerful.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Feb 20th, 2012 at 02:53:22 PM EST
[ Parent ]
As it was, the BuBa retaliated against Kohl by being extra hawkish, which was a contributing factor to the 1992 crisis which ejected the Pound and the Lira (and nearly the Franc) from the ERM.

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 Mon Feb 20th, 2012 at 03:13:56 PM EST
[ Parent ]

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