How Does German Economy Compare to United States Economy?

Posted by

Some of our viewers may have grown up with
the idea that Europe is filled with nothing more than unorganised countries that are run
by corrupt and incompetent socialists. While it may be true in some cases, Europe’s
economic powerhouse Germany, is now the fourth strongest economy in the world, only a few
places behind top ranked USA. Today we’re going to compare the two, in
this episode of the Infographics Show, US Economy vs German Economy. Don’t forget to subscribe and click the
bell button so that you can be part of our Notification Squad. In 2016, The United States had a share of
around a quarter of the gross world product at $18 trillion, while Germany had a take
in 4.4% at $3.4 trillion. To put things into perspective, The US overshadows
Germany in terms of size and population with around 325 million people and a land area
of 3.5 million square miles (3,531,837 square miles) compared to Germany’s population
of 82 million and land area of 135 thousand sq miles (134,580 square miles). The USA has a labor force of 158.6 million
while Germany has 45.3 million. The cost of living in Germany is around 11%
cheaper overall than in the USA which is comparable to the salary difference. The disposable net-adjusted income per capita
for the average household in Germany is $31,925 a year, while it’s $41,071 for Americans. Both countries have a considerable gap between
rich and poor, with Germany’s top 20% of people earning over four times that of the
bottom 20%. American’s top 20% earn a staggering 8 times
what the bottom 20% do. As of January 2017, the minimum wage in Germany
nationwide is $9.79 (8.84 euros), while the minimum wage in the USA ranges depending on
each state and whether the job is one that earns tips. Germany has a reputable export market which
shipped goods to a value of $1.33 trillion dollars in 2016. 70.5% of that was made up of their Top 10
export products – (1) vehicles, (2) machinery including computers, (3) electrical machinery
and equipment, (4) pharmaceuticals, (5) medical products, (6) plastics, (7) aircrafts and
spacecraft, (8) iron and steel products, (9) mineral fuels and (10) organic chemicals. The fastest growing category for the Germans
is vehicle exports, with aircraft and spacecraft not far behind. In the same year, America exported only slightly
more than the Germans, with $1.454 trillion dollars of goods shipped, equating to only
around 7.8% of the economic output. The US Top 10 exports in 2016 were (1) machinery
including computers, (2) electrical machinery and equipment, (3) aircrafts and spacecraft,
(4) vehicles, (5) mineral fuels, (6) medical products, (7) plastics, (8) Gems and precious
metals, (9) pharmaceuticals, and (10) organic chemicals. According to Professor Bernd Venohr of Berlin’s
School of Economics, “America concentrates on the mass market and quantity, but Germany
is king of niche markets.” Germany has a strong manufacturing sector
which makes up around one quarter of its economy while the US sector is only twelve percent. Germany’s success relies on two important
advantages. The first is that they have a manufacturing
commitment with support for training and offers technical apprenticeships and vocational training,
along with sponsored school programmes. They also give company penalties for getting
rid of workers. The second is that they have a lower corporate
income tax rate which benefits investors and companies, who can reinvest and raise capital
more easily. While President Trump has criticized Germany
for its unwillingness to spend more on defence and endless trade surpluses, back in the Obama
days, government policy makers were seeking guidance from Germany to help them in doubling
the nation’s export growth, which was a promise from the then President. A large part of Germany’s export and manufacturing
success is due to its large number of small and medium size enterprises or SMEs which
have less than 500 workers and annual sales of under 50 million Euro. 99% of companies are SMEs and employ around
two thirds of workers in the country while in the USA, even though the percentage of
SMEs is the same, they only employ around 50% of the population. German workers have access to affordable and
quality healthcare, while many US SME workers probably don’t, and if they do it will be
of low quality. The decisions and policies of a government
highly affects the economy and quality of life for its people. Germany shows higher government effectiveness
than the USA with its integrity in policymaking processes and government institutions, with
accountability for its politicians and less corruption. The young adult population of Germany has
one of the lowest unemployment rates in the world and enjoy good morale in their workplaces
with a high quality of life so the fact that the German economy has been on a fast growth
rate compared to the US is believable. You could, however, wonder what manipulation
has been done to US GDP and employment statistics due to the poor corruption rating given by
The World Bank, The World Economic Forum and Transparency International. It would be safe to say that the US has a
lot to learn from the Germans in terms of their government and economic policies and
in fact Americans could be much richer if the US Government did not, overspend on healthcare
and pharmaceutical drugs, Spend $3-4 trillion on the Afghanistan and Iraq wars, Give fossil
fuel companies annual tax breaks of billions of dollars, and Ruin electrical engine designs
in the past which would have done away with the Middle Eastern oil dependence. So what does the future hold for these two
powerful economies? While America dominates the global economy,
it might not for much longer. With only a 1.6% growth rate in 2016, it was
far behind China’s 6.7% growth, who sit in second place behind the US in the top economy
ratings. Germany’s quality of life has never been this
high and the economy has almost fully recovered since the last crisis. But, although strong by European standards,
their economy could see some challenges in the next few years due to the refugee crisis
and the implementation of Brexit. So, which country do you think has more potential
growth in the future? Could Germany improve its ranking over the
next few years? Let us know in the comments! Also, be sure to check out our other video
called American Cops vs British Cops?! Thanks for watching, and, as always, don’t
forget to like, share, and subscribe. See you next time!


  1. I am so glad to be born in Germany. Everything is wonderful here. Also healthcare, don't listen to Trump. He is fake news.

  2. LOL haha the only corrupt country is the us ??? living in Germany is more expensive because 50% of the salary is taxed and insurance.
    Also the refugee crisis is actually positive because we need more work forces!

  3. US Citizens are direct descendants of Europeans (mainly german, irish and english). Of course theyre going to be similar in many ways.

  4. Concerning the exports of the USA…. I wonder that weapon-exports are not mentioned at all. Do they belong to 'machinery incl. computers'?

  5. if america stop spending 25% of its revenue on welfare(which by the way the narrator forgot to mention)
    she could make huge economic advances. so much for pro-choice and celebrating EastEr/confession.
    and by the way, let's not forget about Japan. who really won WWII?

  6. When is Germany going to pay their fair share to protect themselves? The can't even pay their 2% of GDP for NATO defense. Since Germany can't or does not what to pay their fair share defense spending, this means the USA is subsidizing their economy.

  7. 00:01 "Europe … unorganized countries that are run by corrupt and incompetent socialists". Yeah, those poor people living in Switzerland, Norway and Co :)))))))

  8. people view Europe as "unorganized countries that are run by corrupt and incompetent socialists"?….
    Doesn't it fit a lot better to America!?!?

  9. honestly not free helathcare is not too bad but it is in americas case because its all so expensive, if everything where 1/4 of the price it is now the american people would be much more wealthy. also the military budget is completely excessive and the US needs to stop spending trillions on wars

  10. No one is going to talk about how German exports are subsidized artificially by them being in the Euro zone?
    And at the expense of other weaker Euro zone countries.

  11. i always wondering how can the axis countiers become so rich and even surpassing the allies force countries

    Germany, japan was totally broken after WW II
    except italia bcs italia not really broken after WW II

    anyone has a clue?

  12. USA has 22 trillion dollar debts and the numbers are growing! Germany has 1.9 billion euro debts and the numbers are going down.

  13. In 2019, Germany is flirting with recession, while the USA is experiencing healthy growth.
    (Even in the dated video, the lower salary in Germany did not fully make up for the lower cost of living in Germany.)

  14. Economic Senerio of a nation never remains constant . Changing policies of less developed nation are bearing fruits for them and their efforts cannot run void. Hence One America will loose it's position because of many factors : Climatic Conditions, Rising labour Costs, Aristocratic Style of Living, no Repare Culture , Maintainance of Large and Costly designed Infrastructures and Expensive American products are losing Markets . Moreover, America is a friend of none. But wants to become Boss of all . This may lead to declining status of American Economy. Now, as the necessity is the cause of invention many nations have their Engineers and Scientists who will never wait for transfer of American technology we they will invent new technology. As India doing. But our Government is not giving our men to do this under western influence . But we are now in mood to break them . History Teaches how to survive and thus many creatures adapted the condision and their generation changed and now they are existing with a different character.

  15. The US is following suit of what Germany did in the early 1900's economically. Not learning from the mistakes. The German economy is currently the most stable and more robust one in the world.

  16. actually over than 50 million are German-Americans or ' Deutschamerikaner ' .
    so you compare germans to multi-germans themselves .

  17. I am very proud to be German, especially when I think of other countries I’ve not only read (reliable) articles about but also visited, like for example the US

  18. Why does the world hated and envies the United States so much? I’d never leave the USA for Germany. The USA is simply a better nation to live in, and I’m Japanese

  19. I live in Austria ?? which is next to Germany. It’s a small country but it’s way better than Germany. We also speak German. They are very similar. Average salary is 4000$ a month and there are lots of big houses because there are lots of rich people including me. Lots of people have Mercedes Benz, Audi and BMW cars. Healthcare is free. No peasants.

  20. "unorganised countries that are run by corrupt and incompetent socialists"

    I thought we had a bit better reputation…

  21. I dont really know something about Economics im more the science guy but i think that Germany will experience higher growth due to the many sanctions the US puts on other coutries under Donald Trumps precidency

  22. Both are rich and marvelous country. The pinnacle of high technology quality sophistication and the best entertainment in the world. I'm from Indonesia as 3rd worlder we admire the german high quality machines excellent

  23. Compare USA economy VS United Europe Economy . EU economy 22 Trillions, USA economy 19 Trillions . For a ''group of unorganize corupt european states '' to beat USA economy with a big margin, must be really something :)))

  24. Comparing the US's economic growth rate to Chinas is a poor comparison. Here's why. If you have $1 and you find $0.50 your wealth increases by 50%. If you have $100 and you find $0.50 your wealth increases by 0.5%.
    China is very poor, s9 even a tiny increase results in a huge percentage gain…

  25. I believe Germany and USA are one of the closest allies in the world, despite desperately fighting each other not longer than 75 years ago.

    Love for USA from Albania.
    Liebe fur Deutschland von Albanien.

  26. “Germany shows higher efficiency in policy making” LOL The Berlin airport is the most delayed, overpriced, corrupt controversial structure ever designed… and its all done by the Germans

Leave a Reply

Your email address will not be published. Required fields are marked *