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German Wages: Creeping Optimisim
The differences between eurozone members tends to be a key focus for investors and policy makers. There is another fissure that typically is under-appreciated. It is within Germany itself and is often not discussed in polite company. It is the divide between German workers and the economic elite. The German economic model, under which it exports 40% of everything it produces, presupposes a highly disciplined work force, where employers keep the lion's share of productivity gains and increases in unit labor costs are fiercely resisted. German officials pride themselves on rules-based framework. Yet, to an outsider, ... (full story)