Germany and its Economy Essay -- Economics

Germany and its EconomyKnown as the fair capital, Germany lies in the center of Europe andin the center of the European home market. Approximately two tercets ofthe top international fairs take place in Germany. Germany issuccessful. A leader in world trade, Germany is the third largest economy in the world and the biggest market in Europe. It wasntalways this way though European power struggles wounded the countryin two crushing World Wars in the first half of the twentieth centuryand left the country dominated by the victorious Allied powers of theUS, UK, France, and the Soviet Union in 1945.Germany has been through all of the phases of the business cycle manytimes. It even suffered immense depression after World War One in theearly 20th century. The Treaty of Versailles dug a deep hole inGermanys economy because the Allies had gotten a little greedy withtheir revenge. Payments made by Germany to the Allies be adrain of capital that would have otherwise been directed toward theg rowth of German industry. In order to pay its debts for World War I,Germany engaged in a huge hyperinflation of its currency, printingpaper marks until, in 1923, when they became worthless. Thedestruction of the currency wiped out the peoples savings, whichmeant that there would be very little capital on tap(predicate) within theGerman economy for years to come. With Adolf Hitler rising to power in1933, the German economy became increasingly socialized andmilitarized, passing through recovery to prosperity, which frightenedtheir foreign investors and made a healthy economic recoverynonexistent.Germany is referred to as a social market economy and remains a key ingredient of Europes economic, polit... ...Germany is doing well other than a fewscarcities. Because they are the third leading economy in the world,they rank up there with the U.S.and France. Germany has a fewshortages in labor and energy, but overall they succeed in exports andGDP growth. Germany is an economy not much d ifferent than our own.Besides both being defined as market economies, Germany and the U.S.also share the same periods of business cycle changes. They bothexperienced the Great Depression in the 1920s and 30s and are evenwitnessing a receding now. I would agree that an economy is just likea business. An economy goes through the same downfalls and good timesjust like a business, an economy experiences depressions, recessions,recoveries and prosperities and the goal of an economy is to have asurplus of money while supplying its citizens with needed goods andservices.