Germany: The New America?

Decades ago, the average middle class American had much less to worry about. Debt was lower, salaries were worth more, and unemployment wasn’t such an overwhelming issue.

Today, while Americans are struggling to make ends meet and watching their money disappear as quickly as they receive it, another country is feeling the ease of 1970s and ‘80s America.

Germany’s government focus has allowed the middle class a standard of living equivalent to an America of the past.

For one thing, college tuition payments aren’t as inconceivable and loan-heavy as they are in America due to government interaction. The German government offers subsidies for college, and it has also set up a program for vocational job training that allows many students to find jobs easily after completing their education.

An average six out of ten vocational students are offered jobs after schooling, and the unemployment rate last month was 6.8%.

20% of Germany’s GDP comes from manufacturing, the same as 1975 United States. But manufacturing has fallen in the U.S. since then, in turn aiding in creating a large national deficit. Germany, meanwhile enjoys only 1% national deficit...

And Germans are able to save much more of their income than Americans due to a low inflation rate. In Germany, the average worker saves 10% of income compared to a much lower rate in America. 

But is it really a matter of consumer attitude? 

From the LA Times:

Germany's economic practices and lifestyle are deeply ingrained in a culture that fears debt and inflation. In many ways, for instance, the nation discourages consumerism. Its streets aren't plastered with the billboards that dot the U.S.. Taxes on goods and services are high. Many shops and restaurants in Germany are closed Sundays.

Many smaller stores don't even take credit cards. Volkmar laughed about how consumers in other countries pull out plastic for the smallest of purchases.

"In France you pay for your croissant with your credit card. In Germany, they don't like it," he said, referring to both merchants and consumers.

Germans also average more free time than Americans as well. Yearly, many Germans vacation between five to six weeks each year. 

Maybe that extra relaxation time is the key to success!