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The eurozone is in crisis. Nobody has any money, they're spending more than what they can generate in tax, their growth is negative, unemployment is sky rocketing, yet the Germans have all the money, and their economy is growing. What makes Germany the powerhouse of Europe?
Swiss bank accounts from 1945?
Although not mentioned in the segment, social trust is very high in Germany, it is also very high within the scandinavian countries, which are also prospering.Quote:
Originally Posted by Ben
Social trust is extremely low in Greece, but very high in Turkey, whose economy is on fire with growth.
What d you mean by "social trust' ?
The belief that the government, your neighbor and your employer are not out to screw you. In Greece, Greeks do not trust any of the aforementioned.Quote:
Originally Posted by Prospero
In the USA, we are witnessing a dramatic breakdown in social trust which is likely to have omnious consequences.
Thanks - well yes, I agree with that statement regarding social trust. And I agree that the future for the US in the event of a further disintegration of this social trust is indeed ominous.
It may be that a community's or a nation's economic success together with a perception of general political and economic equity fosters social trust; i.e. social trust is not the cause of economic success but rather trust and success, under the right circumstances, foster each other.
Agreed, social trust alone is not enough, but it allows you to get through the really tough times. We never heard the German's whine during unification. Without any help from the rest of the world, they were faced with the prospect of cleaning up the mess that the old Soviet Union had left behind. They use to use East Germany as the dumping ground for toxic waste and raw sewage. I bet the cleanup was very expensive.Quote:
Originally Posted by trish
On the otherhand, Japan has enormous social trust, but their economy is in the third decade of a stuborn malaise.
Actually there was considerable social unrest in Germany during unification - with outbreaks of racist violence, especially in the former East Germany. And savage attacks on Turkish immigrant workers in the West also.