DanielleDurham 1

GermanEconomyandSocialStructure
Germany has been seen as a country of innovation and ingenuity but it has also had its setbacks in attaining that reputation. The economy of Germany has been commonly referred to as the sick man of Europe. This infamous nickname can be attributed to the many pivotal changes having occurred within recent years. While reparation expenses of World War I and II had greatly injured the German economy, the reunification of East and West Germany and the implementation of the European Union Money System have impeded the recovery of the German economy. Fortunately, over the past 10 years Germany has overcome their Great Recession, focusing their ingenuity and commitment to excellence in the production and exporting of products of unparalleled quality. Recently Steffen Kampeter, the parliamentary state secretary at Germany's Ministry of Finance in Berlin said, We changed from the sick man of Europe to the engine." Germanys internal progress has been drawing attention from all of Europe. Germany has seen many financial hardships in the past and has in the past few years developed plans promoting manufacturing and production within country borders. The implementation of this ideal has caused their gross domestic product to rise 3.6 percent in 2010 while decreasing the unemployment rate to an enviable 6.9 percent. (Schuman, and Himmelreich) By promoting internal productivity, they created more jobs within their population and sustained competitive advantages due to the push for innovation. Thus, the idea outsourcing becomes much less efficient due to the instilled expertise. According to the U.S. Department of State, Germanys major exports are: chemicals, motor vehicles, iron and steel products, manufactured goods and electrical products. The U.S. Department of State also addresses

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Germanys major industries. Germanys major industries include: car-making, mechanical, electrical, and precision engineering, chemicals, environmental technology, optics, medical technology, biotech and genetic engineering, nanotechnology, aerospace and logistics. (U.S. Department of State) Germany has positioned itself to have a stable and secure financial future due to implementing extensive emphasis on providing its needs within country borders. While Germany has developed a fantastically stable system of exports and industry, Germany imports certain goods. According to the U.S. Department of State, Germanys major imports are: food, petroleum products, manufactured goods, electrical products, motor vehicles and apparel. Germany is ranked fifth in the world for purchasing power parity terms. (Country Watch) Germany was assimilated into the European Union in the year of its founding in 1951, thus the currency of Germany is the Euro. This early entry into the European Union helped further trading amongst European countries. (Europa: European Countries) With the use of the Euro and influence of the growing services industry in Germany, this has allowed for much employment among the German population. The levels of employment function as the basis for the German social class structure. The first class being the professional, also known as the white-collar class, constitutes 28 percent of the population. This class tends to have the same traits as the American white-collar class; they are educated, professional and earn much higher salaries. The middle class constitutes nine percent of the population and is slightly less educated than the professional class and earning slightly less. Then there is the working class, which can essentially be divided into three sectors: best trained and best-paid workers (12 percent), skilled workers (18 percent), and unskilled workers (15 percent). There are also farmers, which constitute 6 percent of the population. Many foreigners fall under the

Durham 3 classifications of skilled and unskilled workers; 25 percent of unskilled workers are foreigners and many of them live below the poverty line. (Gordeeva) In conclusion, the German economy has been growing and recovering from hindrances in the past with its emphasis on building more opportunities for manufacturing and producing within country borders. This influx of internal manufacturing has lead to the growing working class. Bibliography: Gordeeva, Tatyana. "Structure of German Society." German Culture. 2011. Web. 16 May 2011. <http://www.germanculture.com.ua/library/facts/bl_social_structure.htm>. Schuman, Michael, and Claudia Himmelreich. "How Germany Became the China of Europe." Time 177.9 (2011): 52-55. Academic Search Complete. EBSCO. Web. 16 May 2011. "Germany." U.S. Department of State. U.S. Department of State, 2011. Web. 16 May 2011. <http://www.state.gov/r/pa/ei/bgn/3997.htm>. "Germany." Europa: European Countries. 2011. Web. 21 Apr 2011. <http://europa.eu/abouteu/member-countries/countries/member-states/germany/index_en.htm>.