Germany's Unemployment rate is less than the U.S.

Oh while the Wall Street types wail keyword protectionism, the Economic Policy Institute has an amazing snapshot on Germany's labor statistics:

EPI:  Germany vs. U.S. unemployment, April 2009

Germany has a “short work” program that encourages employers not to lay off workers. If an employer’s production falls by 10% or more, the government will pay the employer 67% of a worker’s salary (60% for workers without children) if the employer keeps the worker on payroll. This policy, along with a “cash-for-clunkers” program, has meant that, as of June 1, Germany had not lost a single full-time job in auto manufacturing.1 By comparison, 92,500 American auto manufacturing workers have lost jobs in the last 24 months.2 The Big Three U.S. automakers and their suppliers have closed plants and dramatically reduced production, resulting in a loss of 354,000 jobs in U.S. auto and auto parts manufacturing over the past two years alone.

Now that is a Stimulus.

Now look at relative GDP (World Bank) and Germany is predicting a 6% GDP contraction this year.

relative GDP, 2009

EPI has a very nice call out on how the German people are not made to suffer like Americans during an economic downturn.

oecd growth predictions

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