Barack Obama is focusing on a monetary policy for fighting deflation like Japan’s that doesn’t exist in the United States, reports The New York Times. But he appears to be overlooking a nation that could provide a more useful lesson for success.
German exports to nations outside the European Union rose 37.7 percent in September from a year earlier, according to Bloomberg News. The increase in exports from Germany, Europe’s largest economy, led to a trade surplus of $23.4 billion (16.8 billion euros) and assisted its automobile manufacturers in earning higher profits.
Not only did the German economy grow despite Obama’s weak dollar policy that has resulted in an 18.6 percent appreciation of the European currency. Germany has also decreased its unemployment from a reunification high of nearly 20 percent to a record low, less than the 8 percent promised by Obama for the United States with his whopping $787 billion of additional spending.
In a related story about international disapproval of Obama’s handling of the economy, a headline in today’s edition of The Wall Street Journal says, “Germany Criticizes Fed Move,” accompanying an article about his monetary policy that consists of a second round of quantitative easing (QE2) contributing to global inflation scare.
The United States Congress plans to withhold appropriations to fight Obama’s unconstitutional health care legislation. The Republican leadership should judge it as necessary and expedient to use similar tactics of austerity to promote economic development like Germany’s for the United States to effect safety and happiness.