Download e-book for iPad: A Supply-Side Agenda for Germany: Sparks from - the United by Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg

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By Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (auth.), Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (eds.)

ISBN-10: 3642742777

ISBN-13: 9783642742774

ISBN-10: 3642742785

ISBN-13: 9783642742781

This e-book offers with supply-side economics and the wanted reorientation it can deliver to West German coverage. The swap, prompt after looking out research, may upload as much as an total process for liberating markets, for elimination government-imposed distortions, and for utilizing free-market techniques to right distortions imposed by means of strain teams. the method may pierce Germany's state-supported encrustations and corporatism. it is going to equip the rustic to persist with the lead of the us and nice Britain in beginning to break out from the tangle within which taxes, rules, and unemployment have grown in step. the upcoming of entirety of the ecu inner marketplace in 1992 provides urgency to this task.

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I. THE NATURAL RATE OF UNEMPLOYMENT In the first part of this paper, I set out a framework to explain unemployment through the interaction of unemployment benefits with other aspects of the welfare state, such as entrenched union power, labour protection laws, and the high tax rates needed to pay for welfare. This can be thought of as a theory of the European labour market disease. The argument set out at great length in Minford (1988a; 1988b) is that these state interventions push up real gross wages that employers must pay relative to productivity; the result is that employment is cut and those not employed register for unemployment benefits, consequently being counted as unemployed in the typical European and other operational definitions in use.

In the days of the German "economic miracle" after World War II, the image of a hard-working society was shaped. Th~ German workforce was widely viewed as driven by a strong work 29 ethic. That image may no longer match the realities of today. Over the years there has been a gradual shift of preferences toward less materialistic values, which, according to many observers, is associated with a decline of the work ethic (Elisabeth Noelle-Neumann and Burkhard Strumpel, 1984). There is ample evidence that a large segment of the society now gives much more priority to leisure and self-determined activities than it did one or two decades ago.

Even the midterm elections are not necessarily a cause for much concern or seen as a challenge to presidential leadership. They may alter the political balance in Congress, thus making it harder for the administration to pursue its political objectives in the legislative process, but this need not mean that, politically, the president is effectively immobilized. History, including some recent periods, provides numerous examples of presidents who were able to work productively with a Congress in which their own party did not have a majority in either House or Senate.

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A Supply-Side Agenda for Germany: Sparks from - the United States - Great Britain - European Integration by Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (auth.), Professor Dr. Gerhard Fels, Dr. George M. von Furstenberg (eds.)


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