Performance on the International Economic Level: Germany Vs. America
Comparing the performance of Germany vs. the U.S. could give us some insight on the economic model that is responding successfully to the economic changes on the global level. On the industrial and financial level, the German model had done much better compared to the American model in sophisticated industries, such as engineering, chemicals, pharmaceuticals, and metalworking. On the other hand, the German model had allowed banks to perform better and to induce better lending rates. Streeck (1997:2) described the German success as, “advanced capitalism as an institutionalized high-wage economy combining high competitiveness in world markets with strong social cohesion and, in particular, low levels of inequality along a variety of dimensions.”
On the Other hand, the focus …show more content…
First, she argued that historical change does not always comes in the form of independent causes affecting dependent ones, but rather, systematic change could occur through shifts in the configuration of central trends, and thus, we must examine the connections and the strength between the parts, which will determine the rise or the decline of a “system.” Second, it is natural for systems to undergo expansion and integration, especially with increasing role and complexity of technology. Third, Regardless of how a system is well connected, no system is fully integrated. As a result, small actors might interact with each other and create disturbances, and depending on the conditions in the rest of the system, these disturbances could amplify to a large degree. Fourth, while we could deduct similar patterns across systems, the same acts have different consequences in different times and
Comparing the performance of Germany vs. the U.S. could give us some insight on the economic model that is responding successfully to the economic changes on the global level. On the industrial and financial level, the German model had done much better compared to the American model in sophisticated industries, such as engineering, chemicals, pharmaceuticals, and metalworking. On the other hand, the German model had allowed banks to perform better and to induce better lending rates. Streeck (1997:2) described the German success as, “advanced capitalism as an institutionalized high-wage economy combining high competitiveness in world markets with strong social cohesion and, in particular, low levels of inequality along a variety of dimensions.”
On the Other hand, the focus …show more content…
First, she argued that historical change does not always comes in the form of independent causes affecting dependent ones, but rather, systematic change could occur through shifts in the configuration of central trends, and thus, we must examine the connections and the strength between the parts, which will determine the rise or the decline of a “system.” Second, it is natural for systems to undergo expansion and integration, especially with increasing role and complexity of technology. Third, Regardless of how a system is well connected, no system is fully integrated. As a result, small actors might interact with each other and create disturbances, and depending on the conditions in the rest of the system, these disturbances could amplify to a large degree. Fourth, while we could deduct similar patterns across systems, the same acts have different consequences in different times and