Monday, March 7, 2011
Why Budget Cuts Don't Bring Prosperity
For grade 11 Mar 2011. According to this author, Germany's "boom" didn't last long. From the data in this article, what economic cycles are on the horizon for Germany?
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I believe that Germany's economy will be stagnant for the near future followed by further growth later on. I do not believe that Germany itself will be plunged into a long recession but a short one is plausible. I believe that the US is in a recovery stage as of now and that will help foster the growth of other countries like Germany where their currency is strong
ReplyDeleteThe author makes it sound like Germany will be in a deep recession. Cycle wise they'll go through periods of contraction. As Zach said, I can see it as being stagnant.
ReplyDeleteThe article mentions that Germany's government will be in a recession. Germany's economic boom did not last very long. Late last year, Germany's growth has slowed down sharply and they have not recovered yet. The author believes that a recession is in Germany's future, but I don't think that Germany will fall into a depression.
ReplyDeleteGermany will probably fall into a moderately short-lived recession, considering their economic boom was also short-lived. The chances of the country entering in a depression are slim, because the United States' recovery will benefit European nations, such as Germany, as noted by Zach.
ReplyDeleteWith an expansionary period like Germany had in the middle of last year it was natural for them to go through a contraction period because that is how the cycle flows. The economy is currently modestly tightening in Germany and I believe will continue in this way until another expansionary period.
ReplyDeleteI think the article is overplaying Germany's "downturn." The graph at the top left corner does not show a downward turn of growth for Germany in the past year (as it does for Britian), it just shows it at a slower pace than it was and at a slower pace than the US. I don't think a severe recession is in the future for Germany, they may just grow at a slower rate than the US without government stimulus programs.
ReplyDeleteAccording to the author Germany will fall into a recessionary period. In terms of the cycle, the German economy will go into contractions and expansions just like any other economy. It is unlikely that Germany will head into a depression.
ReplyDeletei believe that Germany's economic downturn is a grim assessment of what is to come because as evidenced by the graphs it looks as if the growth of Germany is slowing and it will probably enter a period of economic stagnancy but i don't think they will enter as deep of a recession as the united states did. i think that it will be a slow recovery to get back up to the point where it once was but they will get there eventually.
ReplyDeleteThis article states that Germany's economic boom didn't last as long as they expected. The economy is very stagnant right now and may even end up in a recession, but with the facts provided I feel that Germany will not end up in a depression.
ReplyDeleteBased on the argument in this article, it seems that Germany will soon be facing a massive contraction in private consumption and investment as the modest stimulus tapers off and the GDP loses one of it's main constituents: government spending. As this factor of GDP disappears, investment will plummet as expectations of future GDP drop to abysmal levels.
ReplyDeleteGermany is most likely entering a recessionary period. The country is currently stagnant with very little growth. I feel Germany's condition will only get worse unless more money is poured into their economy. Otherwise, the nation has the potential to be in a deep depression.
ReplyDeleteAccording to the text Germany will soon be entering a large contraction phase in the economic cycle. Investment will decrease in correlation with the decrease in government spending. I believe the country will then stagnate as inflation and unemployment both rise in accordance with the economic activities occurring at the time.
ReplyDeleteThe German Economy went stagnant because the business cycle has reached its contraction stage. Of course it would begin to decrease in spending and unemployment will rise. Germany is not immune from the crisis of the world, as much as it thinks it can be independent from the EU it cannot dampen the crisis the world is having.
ReplyDeleteAccording to the author, Germany is in a recession. The country is stagnant due to no growth in it's economy and such. Without any money flowing into Germany's economy, the country may fall into a depression. This will be caused by an increase in the unemployment rate and people not spending their money.
ReplyDeleteAs of right now, Germany is in a short-lived recession not a depression because their growth was short-lived as well. Its economy is in the contraction phase. Germany is likely to experience stagflation in which inflation increases as well as unemployment if they don't stop cutting budgets.
ReplyDeleteGermany will probably enter a recession because after its temporary growth, its GDP has now slowed down dramatically. Due to this slow growth, hiring has come to a pause as well. So Germany is currently experiencing stagflation and a recession will most likely follow.
ReplyDeleteIt is clear that Germany will be entering a recession soon because of its stagnant GDP. Growth has slowed down to the point where this will begin to affect the people of Germany in a very negative manner. Inflation is a clear product and so is unemployment, since businesses do not have the resources necessary to hire new employees. Stagflation can be seen in the horizon.
ReplyDeleteGermany is currently faced with a period of contraction that will ultimately lead to a recession. Based on the graph and the information presented in the article, I feel it is likely that Germany will be faced with a long period of little economic growth, but that the recession itself won't be too severe.
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