Many say the name of the country, Germany, has been blackened by the happenings within the past century. Germany was originally called Germania. Thousands of primitive tribes lived there. These tribes banded together and resisted the conquest of the Roman Empire in 9 A.D. If Germany had been conquered, its history, culture, and economy would have been immensely changed. A few centuries later Germany was conquered by the Francs. Germany was also home to Martin Luther who led the protestant reformation. After the French Revolution and the Napoleonic Wars, feudalism fell away in Germany, and liberalism and nationalism went into an all out clash. The industrial revolution greatly improved the German economy following a previous failed revolution.
…show more content…
It would be considered half way between capitalism and socialism. It is practically a free market, but the government intervenes from time to time. By decreasing poverty and broadening prosperity to a large middle class through government sponsored programs, capital market participation is enlarged. This leads to greater economic equality. This economy promotes private markets with state oversight of the economy. Some of the main components of the social market economy in Germany are: Private property, freedom to exchange goods, and freedom to set prices. Some of the state sponsored components include health care, unemployment insurance, and pension insurance as well as education. This economy benefits the working class by guaranteeing their health insurance, pension, and increased job opportunities for employment through government programs. …show more content…
It has a high illiteracy rate due to many students dropping out of high-school before they graduate. A high illiteracy rate will usually stunt the growth of an economy to a degree. Germany also struggles with a low birth rate and an aging population. The average family is only having one and a half kids. This becomes a problem for the economy because first of all those kids will have an incredibly hard time paying the welfare costs when the larger older generation starts onto welfare. This also creates the problem of an over abundance of jobs and not enough people to fill those jobs. Mainly Germany’s problems can be corrected through a few easy steps. The state needs to put an emphasis on getting kids through high-school, and the parents need to keep the population rate
It would be considered half way between capitalism and socialism. It is practically a free market, but the government intervenes from time to time. By decreasing poverty and broadening prosperity to a large middle class through government sponsored programs, capital market participation is enlarged. This leads to greater economic equality. This economy promotes private markets with state oversight of the economy. Some of the main components of the social market economy in Germany are: Private property, freedom to exchange goods, and freedom to set prices. Some of the state sponsored components include health care, unemployment insurance, and pension insurance as well as education. This economy benefits the working class by guaranteeing their health insurance, pension, and increased job opportunities for employment through government programs. …show more content…
It has a high illiteracy rate due to many students dropping out of high-school before they graduate. A high illiteracy rate will usually stunt the growth of an economy to a degree. Germany also struggles with a low birth rate and an aging population. The average family is only having one and a half kids. This becomes a problem for the economy because first of all those kids will have an incredibly hard time paying the welfare costs when the larger older generation starts onto welfare. This also creates the problem of an over abundance of jobs and not enough people to fill those jobs. Mainly Germany’s problems can be corrected through a few easy steps. The state needs to put an emphasis on getting kids through high-school, and the parents need to keep the population rate