Economic Policy Goals and Labour Policy of Germany

Document Type:Thesis

Subject Area:Economics

Document 1

Due to the number of complex issues that arise as to finding an optimum economic policy, law enforcers and government officials find it appropriate to establish agreements to create compromises. It is for this reason that even the most powerful governments in Europe find it difficult to bulge to every demand by the executive branch despite having control over both houses of Congress. All federal governments in Europe aim to establish healthy or strong economies with the aid of three policy goals like stable prices, full employment and economic expansion or growth. Labor policies refer to administrative judgments that determine the state of the labor force. Despite the common knowledge that labor policy establishment seeks to uphold the optimum conditions for the working force, most regions of Europe disregard such policies with some workers putting up with harsh environments, unfair compensation and unequal remuneration.

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The next section will provide details to ascertain the phenomenon. Germany, in the previous eleven years peaked unemployment rates in 2003 and the lowest unemployment rate achieved has been 2013. Concerning Gross Domestic Product, the rate has fluctuated and hitting the bottom in 2003 and the highest in 2013. The next section will analyze the phenomena. Regarding the current balance, the numbers have been stable with a range between 1 and 10 with the exception of 2009 when the figures plummeted. In 2010, Germany regained its economic status with an expansion of 4. 4% and in the next year, despite the Euro-zone crisis, the economy persisted in flourishing. The main characteristic of the Euro-zone crisis was diminished demand for Southern Europe capital products, which resulted in slight growths of averagely 1. 0% annually for the years between 2011 and 2013.

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Germany’s economy centers on investments and export-intensive models which other countries blame for the sluggish economic development characteristic of the Euro area. In 2010, the current balance rose to 14. 5 when other consumers of Germany’s export products resumed leading to more expenditure on investments. This section of the essay will evaluate the reasons for consistency with Germany’s current balance. Through the undervaluation of the Euro, the German Unit labor costs have consistently risen by up to 30% in comparison to other Euro-zone competitors translating to phenomena where German’s exports have become averagely 30% more competitive than competitors do. In the Euro, there is no currency revaluation, which creates ramifications for Germany’s consistency. Labor Policy in Germany Table representing youth unemployment rate by sex We attain unemployment rate by dividing the number of unemployed individuals aged 15 and 24 by the total active population of the same age group.

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