Secular stagnation is a condition of negligible or no economic growth in a market-based economy. When per capita income stays at relatively high levels, the percentage of savings is likely to start exceeding the percentage of longer-term investments in, for example, infrastructure and education, that are necessary to sustain future economic growth. The absence of such investments (and consequently of the economic growth) leads to declining levels of per capita income (and consequently of per capita savings). With the reduced percentage savings rate converging with the reduced investment rate, economic growth comes to a standstill – ie, it stagnates. In a free economy, consumers anticipating secular stagnation, might transfer their savings to more attractive-looking foreign countries. This would lead to a devaluation of their domestic currency, which would potentially boost their exports, assuming that the country did have goods or services that could be exported.
Persistent low growth, especially in Europe, has been attributed by some to secular stagnation initiated by stronger European economies, such as Germany, in the past few years
Any questions? Europe's problems arent due the Greeces; why no, the problem is Germany. Germany's Agenda 2010 backed off the social welfare train, Germany's economy rebounded, Germany double downed on the same policies, and -that- is what caused all those other nations to have to slow down their massive sucking at the state run economy welfare straw.
This is the self-serving explanation 'attributed by some' who spray paint this loutish graffiti and scurry away as an explanation of the lexicon. Because the last thing in the world our own parasitic elites want this nation to realize is that it is Germany who has the 'stronger European economy.'
Greece: The country's economy was devastated by the Second World War, and the high levels of economic growth that followed throughout the 1950s to 1970s are dubbed the Greek economic miracle. Since the turn of the millennium, Greece saw high levels of GDP growth above the Eurozone average, peaking at 5.9% in 2003 and 5.5% in 2006. The subsequent Great Recession and Greek government-debt crisis, a central focus of the wider Eurozone crisis, plunged the economy into a sharp downturn, with real GDP growth rates of −0.2% in 2008, −3.1% in 2009, −4.9% in 2010, −7.1% in 2011, −7.0% in 2012 and −3.9% in 2013. In 2011, the country's public debt reached €355.141 billion (170.3% of nominal GDP). After negotiating the biggest debt restructuring in history with the private sector, Greece reduced its sovereign debt burden to €280.4 billion (136.5% of GDP) in the first quarter of 2012.
What Wiki claims CIA Factbook says about German Economy: (54 is a cite to the CIA World Factbook)
The German economy practically stagnated in the beginning of the 2000s. The worst growth figures were achieved in 2002 (+1.4%), in 2003 (+1.0%) and in 2005 (+1.4%). Unemployment was also chronically high. Due to these problems, together with Germany's aging population, the welfare system came under considerable strain. This led the government to push through a wide-ranging programme of belt-tightening reforms, Agenda 2010, including the labour market reforms known as Hartz I - IV.
In the later part of the first decade of 2000 the world economy experienced high growth, from which Germany as a leading exporter also profited. Some credit the Hartz reforms with achieving high growth and declining unemployment but others contend that they resulted in a massive decrease in standards of living, and that its effects are limited and temporary.
The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and European recession cycle. German industrial output dropped to 3.6% in September vis-a-vis August. In January 2009 the German government under Angela Merkel approved a €50 billion ($70 billion) economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates. Germany exited the recession in the second and third quarters of 2009, mostly due to rebounding manufacturing orders and exports - primarily from outside the Euro Zone - and relatively steady consumer demand.
Germany is a founding member of the EU, the G8 and the G20, and was the world's largest exporter from 2003 to 2008. In 2011 it remained the third largest exporter and third largest importer. Most of the country's exports are in engineering, especially machinery, automobiles, chemical goods and metals. Germany is a leading producer of wind turbines and solar-power technology. Annual trade fairs and congresses are held in cities throughout Germany. 2011 was a record-breaking year for the German economy. German companies exported goods worth over €1 trillion ($1.3 trillion), the highest figure in history. The number of people in work has risen to 41.6 million, the highest recorded figure.
Through 2012, Germany's economy continued to be stronger relative to local neighboring nations.
What CIA Factbook actually says about German Economy:
The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, has contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 5.3% in 2013. The new German government introduced a minimum wage of $11 per hour to take effect in 2015. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2012 Germany reached a budget surplus of 0.1%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 though the target was already reached in 2012. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.
There is a political battle being waged to make damn sure that Agenda 2010 ("Austerity") and Merkel's doubleing down on THAT are never understood in America to be contributor to Germany's economic strength: our elites are urging us toward the 'secular stagnation' abyss not away from it.
Ultimately why? Because The Malthusians and their intellectual spawn are existentially terrified children, convinced since the 1800s that mankind's only hope is to newly target stasis in this Universe. As if. In this Universe? Stasis is death. Especially for economies. They have a theory based ultimately on mankind as bees and elites as beekeepers. And largely can't balance their own checkbooks, but are going to run soemthing called 'the economy.'
These Emperors, this time, are all about the Common Good, so sit back and relax, you will like it.
Our species surface growth paradigm -- surface gradient -- is all but consumed, and the more our technology advances, the faster the rate of consumption of gradient, the more highly concentrated the remaining pockets of opportunity become.
There -is- an alternative to endemic, chronic 'no growth', and JFK pointed at it. It is endemic infinite growth. Transition from surface based deveolopment wave to volume based development wave. It was not technological reasons that made us pause for now 50 years. It was Nixon's petty jealousy of JFK, period, and other equally short sighted reasons as well. We've not only wasted the last 50 years of national health and vitality and vigor, we've all but killed it. There is no technological reason why tonite, we are not able to take our children outside, point at the lights of the new cities on the Moon, and watch our children look up. Mankind's natural desire to do exactly that is proceeding, not because of whatever this sick federal government concer is, but in spite of it. NASA these days is being politically abused to put out the kind of tripe seen here, reported by Ed Hudgins: http://rebirthofreason.com/Forum/NewsDiscussions/3324.shtml#0
Instead, what is it that our children today are 'looking up' to? GM? The investigation of the recall? Solyndra? Curt Schilling's Studio 38? GE and IBMs crony capitalism? Non functioning websites pushing government health care, where folks pushed onto MEDICARE are lumped into that 6 or 7 million? Anything at all going an anywhere near that $4T being spent in DC?
Name one thing that this nation is doing today with that $4T that will be looked back on with pride in five generations. Hoover Dam? WWII? Sorry, those were the America generations with a federal govt that spent less than $1.5T/yr (in population and inflation adjusted dollars, compared to today's $4T). What the Hell is this nation doing with that $4T largely taxed from unborn generations(by handing them a busted national credit card?)
Watching China and India pick up where we left off? We may not actually be doing any of that these days, but we are world class leaders at throwing up some actor in a GM/Cadillac convertible commercial and beating our chest about what we used to do. Who the Hell is that commercial aimed at?
So what has been worth this $4T in federal overhead, bringing the nation to its knees?
Please say, "the saving of GM and Detroit." Public pensions for political cronies. Propping up unions and GE and Harris Corp and Lockheed Martin and Solyndras while the balance of the nation is on its knees, paying for all this and sending its young to respond to all the cynical flag waving going nowhere, running the expensive clock until the inevitable 'never mind, we didn't mean it until the next time." Now go tell the graduating class of 2014, this is why they were fleeced since long before they were born, and good luck, sorry we can't actually point at a reason for the fleecing..