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Saturday, September 24, 2005

Germany Shows Sign Of Recognition

While not overwhelmingly supportive of Angela Merkel as German chancellor, the German polls show less support for Gerhard Schroeder to remain as such. 42% of the Germans are in favor of Merkel while Schroeder is polling at no more than 30%. That is not a mandate for change but shows that some of the populace is ready for what Schroeder called "over-competition, jealousy and selfishness," with low wages for workers and low taxes for the wealthy.

Besides hitching themselves to France on foreign policy matters, for 7 years Schroeder's economic policies have been similar to France's with high marginal tax rates, high corporate tax rates, overly protective employment laws that stifle business's ability to remove bad workers. This socialist paradise has been leading Germany towards economic disaster with unemployment rates close to 12% and no business growth.

I do not have faith that the German's have what it takes to embrace capitalism before they bottom out. I expect they will lash out with envy at the Irelands and eastern European countries who are implementing low tax policies that gaurantee growth, unemployment and success as they have against America. The "sick man of Europe" will continue the negative trends of a welfare state until it is too late.

My question is will France beat them to the bottom? Some actually refer to them as the "sick men" of Europe. Whatever.

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