Dear Leon, I have some serious problems of historical context with this article. You refer to << Germany’s, once a military superpower turned economic superpower >>, which implies your starting point as the end off WWII, you then make a quantum leap to modern times and Germany’s economic genius.

Germany, and much of Europe for that matter, was annihilated by WWII, there was nothing left. As part of the Marshall Plan, or European Recovery Program, Germany was effectively placed under US funding and reconstruction administration.

This program included the setting up of “ground up” quality control production techniques under Professor Deming and the establishment of US manufacturing and trade. Not to mention the $13 Billion in US economic and technical assistance. This was in addition to $12 Billion in aid before the plan even started. These sums represented a colossal 33% of US GDP at that time.

Much the same approach was taken with Japan during the same period and it is no surprise that both nations became such economic and productivity superstars.

Yes Germany has applied itself well since then and has indeed maintained its industrial and economic momentum. So strong is its economy that it integrated the failed state of East Germany and remains the financial powerhouse of the EU, without which Greece would positively be sent into bankruptcy.

That << the German miracle rests on a vibrant manufacturing sector >> is misleading and contentious. Whilst it is true about their vibrant manufacturing sector, it is no miracle at all. It was built, managed, funded and administered by US technology and US taxpayers, not to mention the willingness of US industry to invest and trade with post WWII Germany.

It does you very little credit to point to Germany outperforming the US without acknowledging the fact that Germany, and Japan for that matter are what they are today, because the US administration, US taxpayers and allied forces made huge sacrifices.

No economic miracle, just hard yakka, that is the leaf we can take from Germany.

Is there a part two where you tell us exactly how we could implement these lessons we should be learning from Germany?

Excellent commentary, Spindoc.

Further, as a late age learner going on 90, one may suggest that lessons from a dead Maynard Keynes had much to do with the economic good that followed after WW2.

Keynesiam thus became a vital part of the Marshal Plan to help enemies gain their feet again rather than destroying future valuable human potential, the productive mightiness of which had only been steered the wrong way, rather than for the good.

Compare to Australia.

- A massive trade deficit.

- Very little value adding to our main trade exports.

- Either an over worked or under worked population, with 14 hour days now being required in some companies, while 600,000 are unemployed, and perhaps more are underemployed.

- A failing education system that has become heavily corrupted by socialiam and feminism, with a major decline in maths and science.

-An attitude of import, import, import, with minimal interest in developing anything made in Australia.

- A theory that all we have to do is increase immigration, and it will automatically improve our productivity.

cornonacob asks:

"Is there a part two where you tell us exactly how we could implement these lessons we should be learning from Germany?"

I would have thought that was obvious. The author writes:

"...it [Germany] boasts ...convenient access to over 500 million EU customers."

All we need to do is move Australia to Europe so we too can offer convenient access to 500 million EU customers and enjoy the attendant economies of scale.

Comparing a country in the heart of one of the richest markets in the world with a small country on the periphery is preposterous.

That being said we could be doing more to improve our infrastructure and investment in R & D.

Is there a part two where you tell us exactly how we could implement these lessons we should be learning from Germany.
cornonacob,
By adopting the mentality of a people who think generations ahead & not of todays's bank balance.