An inspiration for Canada German trade surplus hits new record

 

Frank  Nov. 4, 2014, in Waterloo, Ontario, Canada

 

If you Google the Images with key words of Oliver Joe, you may get a lot of returns, the vast majority of them were the photos of Oliver Joe - the current Financial Minister of Canada, and the vast majority of his facial expressions have showed deep anxiety with few in happy.

Canada and Germany are both the countries of relatively affluence. However, the reasons for the affluence are fundamentally different.

According to the Key Facts and Figures on the Natural Resources Sector of the Natural Resources Canada: “Canada is blessed with a vast incredible wealth of natural resources, which contributes significantly to our national economy. Resource industries play a critical role in delivering jobs, growth and prosperity for Canadians.”

According to the Encyclopedia Britannica of the Resources and power of Germany: "Germany has relatively few domestic natural resources, imports most of its raw materials." "Oil is Germany’s principal source of energy. As domestic production is quite limited, most crude oil is imported. Many petroleum products also are imported."

From above, we may understand that, the affluence of Canada is mainly depended on the vast incredible wealth of natural resources. However, the affluence of Germany is not depended on the relatively few domestic natural resources, but, in must be depended on the hard work of the great Germans.

August 12, 2014, the article Finance Minister Joe Oliver warns global tensions threaten Canada’s growth said with that:

"Finance Minister Joe Oliver acknowledges that the Canadian economy is facing a challenging future, one that could see a fragile global recovery and geo-political risks hampering growth in employment and exports." 

"Speaking to reporters Tuesday, Mr. Oliver said the world’s two biggest economies — the United States and China — have struggled recently and that geo-political concerns in the Middle East and parts of Eastern Europe could threaten global trade at a time when Canada needs to grow its exports."   

However, facing with similar global economic situation, the economy of Germany is still in well developing with creation of a new record. The economic achievement of great Germans lessons the officials of Canada with that objective economic environment are not the main cause of the economic downturn at all. The key is that the government how to rational play own governing role to promote the well play of the internal potential.

Nov. 4, 2014, I read some reports that German trade surplus hits record in July 2014, I think of my Feb. 16, 2014 article Why German Economy Can Fly Against Economic Recession, in which I introduced that how Germans well play their internal potential and feb. 23, 2014 I added comments in the start of the article as follow: 

"In the morning, Feb. 16, 2014, I happily read the article <Olkswagen's US workers vote against joining union>, and produce a feeling that smart Germans civilize Americans to stop their semi-civilized behavior of chiseling holes on own lifeboat." 

"I am too excited and think of a lot about the wisdoms of Germans with strong desire to speak out."

"Germany may be one of the few rich countries relying on the hard working rather than that of natural resources, which has attracted great many people to explore the secrets.  However, most of them have focused on the macro policy with ignoring the micro details." 

"Here, I am trying to dig some trivia that is often to be unseen or to be seen but to be treated as not worth to mention. I believed that those are easily despised or neglected by others, are just precisely the most important. They are the true reasons or may be called as DNA that Germany has been success outstanding."

I excerpt some paragraphs of the article as follow, after reading what I have introduced, you will understand that, why, when great many people complaining that world economic downturn drags down their national economy, the German economy was able to outshine others.

In Germany, there also similar organization - Works council as that of Labor Union in North America, but, the initial purpose and actual effect has essentially different. In Germany, it is mainly for promoting workers to participate in management of the companies they work for, ans helping full exertion of workers' intelligence.

Recent years, in Canada, there more and more businesses are failed. The most of failures have the fatal impact of the Labor Union or the impact of the workers' ideological from Union's Culture. 

In the last century, after the U.S. President Roosevelt successfully saved the Great Depression by the means of the government intervene in the economy, the most of countries take Keynesian theory, such as, Fiscal Deficit, as the magic to sitimulate their economy. Now, most of them are debt-ridden, and some of them become losers with bared buttocks and broken spine.

However, at that time, rational Germans did not silly go with the flow. May be that they have foreseen that Keynesian Fiscal Deficit is the economic heroin with instant excitement, but long-term fatal. So, they adopts own Freiburg School neoliberal theory that can sustain for long-term stable development.

Now, nearly 80 years practice have shown that the choice of Germans are smart prescient.

In 2013, German job market has created a miracle in the history of the Federal Republic while the unemployment rate continued to rise to the record levels in the neighboring countries.

This success thanks in part to government launched Schroeder labor market reform so-called "Agenda 2010" in 10 years ago, in which, the key is to create low-income working class with withdrawal of the job market regulation to increase the flexibility for creating more jobs. of course, it promotes the emergence of a lot of low income work.

Robert Bosch who was the German industrialist, engineer and inventor. He has found the Robert Bosch GmbH in 1886. His philosophy is that: we should all strive to improve current situation.

As that of general popular practice of business operation world widely, in 1930s Robert Bosch GmbH once had listed and gave the stock to the management team. After a while, Mr. Robert Bosch found the top mangers changed their habit and attitude, they went to lazy and not work as hard as before. The dividend income encouraged them paying attention on enjoying life. So Mr. Robert Bosch changed his mind to have bought back the stock and delisted

Mr. Robert Bosch also summarized other bad effects as listed Company.    

1. Loss of autonomic power in decision-making.

2. Loss of autonomic power in financing.

3. The pursuit of the stock market value will be made fall into a short-term behavior in business running, to affect long-term development investment.

4. Listed Company can not keep excellent CEO, they may be ousted due to poor short-term profit caused by focusing long term investment. Some prospective researches may need long time to reach practical results, such as, 5 years, 10 years, even more. 

The workers in Robert Bosch GmbH belong to the Metal Union, the salary is highest in the Germany compared with other industry or Unions. The wages of the Board members lower two salary grades than that of the workers.

I think that, besides Germans, for any people in any countries, the wages of the Board members lower than that of their workers is incredible, not mention that even lower two salary grades.

In my memory, German Chancellor Angela Merkel is the first Head of State to criticize the unreasonable high payments of the corporate executives.