US Economy vs German Economy

Overview

• Europe often perceived negatively, yet Germany stands as the 4th strongest economy globally.
• Comparison focus: USA (top-ranked economy) vs Germany.

Economic Size and Population

• United States

  • Share: ~25% of global gross product ($18 trillion in 2016).
  • Population: 325 million.
  • Land Area: 3.5 million sq miles.
  • Labor Force: 158.6 million.

• Germany

  • Share: 4.4% of global gross product ($3.4 trillion in 2016).
  • Population: 82 million.
  • Land Area: 135k sq miles.
  • Labor Force: 45.3 million.

Cost of Living and Income

• Germany is 11% cheaper in cost of living than the USA.
• Disposable Income:
  • Germany: $31,925 per capita.
  • USA: $41,071 per capita.
• Income Disparity:
  • Top 20% in Germany earn 4x the bottom 20%.
  • Top 20% in USA earn 8x the bottom 20%.

Labor and Wages

• Minimum Wage:
  • Germany: $9.79 per hour.
  • USA: Varies by state.

Exports and Manufacturing

• Germany

  • Export Value (2016): $1.33 trillion.
  • Top Products: Vehicles, machinery, pharmaceuticals.
  • Strengths: Manufacturing commitment, skilled labor force, lower corporate taxes.
  • SME Impact: 99% of companies are SMEs, employing two-thirds of the workforce.

• USA

  • Export Value (2016): $1.454 trillion.
  • Top Products: Machinery, aircraft, vehicles.
  • Focus: Mass market and quantity.

Government and Policy

• Germany has a more effective government with less corruption and higher integrity in policymaking.
• US government criticized for overspending and less effective economic policies.

Future Outlook

• USA

  • Growth Rate (2016): 1.6%.
  • Challenges: Overspending on healthcare, wars, and dependency on fossil fuels.

• Germany

  • Currently enjoying high quality of life and economic recovery.
  • Potential Challenges: Brexit, refugee crisis.

Discussion Points

• Potential for future growth in both economies.
• Considerations for improving U.S. economic policies.
• Viewer interaction: Opinions on future growth potential for Germany and the USA.