Tuesday, January 14, 2014

Arbeits Reform macht besser

It's the Detroit labor movement's moment;
On the eve of the 2014 auto show, a small group of Detroit citizens gathered in front of the exhibition hall, loudly chanting "Germany to Michigan, Solidarity is gonna win" as reporters flocked to the building for a preview of shiny new models at the auto exhibition.
They were demonstrating for their hometown to overcome the crisis like Germany did. "Berlin has recovered but Detroit has not - the two most important things now are jobs and to keep people in their homes, and not have the banks throw them out," a protester explained.
In a city formally declared bankrupt last year, it's only at the North American International Auto Show (NAIAS) that there's any evidence of luxury and plenty.
Maybe that's because Germany reformed their labor markets a few years ago with the Hartz Reforms. Which cut double digit unemployment rates down to 5.5% within a few years, and left the German economy is good shape to withstand the 2008 recession. One of those reforms cut the duration of unemployment benefits.

Others introduced wage flexibility, and of course, Germany has no national minimum wage law.

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