In recession battle, Germany and China are winners
By Harold Meyerson
Thursday, July 1, 2010
The Great Recession rolls on, but it's not too early to single out the major powers that have come through the wreckage in the best shape. They are the ones the other major nations implore for help -- to bail out weaker economies, to diminish their dominance of the world's production and start consuming more themselves. There are just two such nations: China and Germany.
Global unemployment might remain stratospheric, but in China, long-suppressed wages are finally increasing for millions of industrial workers. China's stimulus -- effectively the world's largest -- has funded bullet trains, airports and wind turbines. In Germany, unemployment has been running a point or two below ours, and exports remain high. Thanks to its favorable trade balance, Germany's finances are the strongest in Europe, which is why German monetary guarantees have been key to the future of both Greece and the euro.
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