This text was also published in German in ZEIT ONLINE on February 17, as part of the op-ed column “Fratzschers Verteilungsfragen“.
Germany is generating substantial export surpluses – but the profits are being squandered abroad. The solution? Investing in Germany.
Since the year 2000, every German has lost an average of €7,500 euros in savings abroad.
How could that be? Didn’t our country just post a record surplus, exporting significantly more to its foreign partners than it is importing? Yes, German companies and thus German citizens have produced and exported €2,200 billion more in goods and services than consumed: a positive trade balance. Continue Reading →