Quote:
Originally Posted by StefanG
it's not Germanies problem when other countries elect corrupt idiots. what are they supposed to do - stop working so everybody else can catch up?
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Well, it is becoming a problem cause not only Trump is questioning this. Germany is growing, but who pays that price... Who is profiting most from the EU?
"Germany has the world’s largest current account surplus. Germans see it as a sign of how competitive their economy is. Why does the IMF see it as a problem? In your view, what can the government do to reduce the trade surplus?"
For an economy with a rapidly aging population such as Germany’s, it is normal to run a current account surplus. But not as large as the one Germany has been running for the past several years.
Having a large and persistent surplus can be bad for a couple of reasons. First, it can be part of a global problem: if some countries run large persistent surpluses it usually means that other countries are running large persistent deficits. Deficit countries risk running up excessive debt and therefore need to adjust. To help this process, it is only fair for surplus countries to adjust as well. This is particularly the case for countries that belong to a currency union.
Germany: Spend More At Home
So Trump gets more support that is Germany is profiting too much and that there must be a new balance.