write about German miracle
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Earlier this summer George Soros and some leading Keynesian economists criticized what they regarded as Germany’s overly strict fiscal discipline. Yet Germany’s real output expanded at a robust 9% annual rate in the second quarter, while the U.S. economy grew at an anemic 1.6% rate. So is Germany now a role model for how to recover?
In a June op‐ed, German Finance Minister Wolfgang Schäuble justified his government’s decision to cut spending, citing “aversion to deficits and inflationary fears, which have their roots in German history in the past century.” He was presumably making a reference to the destructive hyperinflation of the 1920s.
Yet Mr. Schäuble might have cited another relevant episode from his nation’s history. Sixty‐two years ago Germany became a role model for recovery from a very different crisis. In the aftermath of World War II, Germany’s cities, factories and railroads lay in ruins. Severe shortages of food, fuel, water and housing posed challenges to sheer survival.