United States Vs Germany

The US and Germany are not that much different in regards to economy. Both countries are dealing with problems in Social Security, an aging population, stagnant growth and budget deficits. A closer look at these and other factors troubling each country will be analyzed and discussed.

The United States and Germany are dealing with an aging population and Social Security issues. This generation of people will cause the Social Security programs of both countries to not have enough money when younger generations retire. Both countries are very similar in this regard since neither has been able to achieve a solution.

Another comparison between the two countries is the stagnant growth. Both Countries have very comparable exports and are leaders for their particular areas both are suffering from slow growth rates. The encouraging news is that both countries are soon to be or are getting out of the slump. Germany has had a export boom but the consumers don’t seem to be willing to spend more. The United States is very close to our German counterparts in which the consumers and businesses are reluctant to buy. The Housing market has cooled down considerably and has stayed stagnant for the last several months. Another crimp in the growth of the US is the imbalance of import and export. Since we are importing more than we export it can cause a large burden on the government.

Both countries are increasing spending and having tough times to stay within a budget. Some of the factors causing this for the US includes the war in Iraq and Afghanistan. But these are not the main cause of not having a balanced budget. Everyone wants money for their program and there are a lot who are not willing to reduce their spending to improve the deficit in spending.

The future looks good for both countries. Germany and the United States may take a year or more to get out of the slump that is currently holding back the economies. The governments