How Germany builds 2x as many cars as U.S. while paying 2x the salaries

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12-31-11, 09:13 AM

#16

Vladi

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Join Date: Jan 2004

Location: Florida

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Quote:

Originally Posted by 4TehNguyen

in the 1950s, we had the highest salaries in the world yet our products had the lowest prices. That's because we had capital and less regulations to enable high efficiency and productivity

That was basically the "subsidization" by government in order to take even more dominant position in the world after the WW2. Kind of like what China has now.

Truth is you have to have regulations and they are good if implemented with sincere intentions, unfortunately today its only a question if you want to be regulated by a corrupted government official or a corporation. Somehow I still believe there are some neutral bodies that work in common folk's best interest. Somewhere.

12-31-11, 09:25 AM

#17

spwolf

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Quote:

Originally Posted by DustinV

Regarding the salaries, the German worker needs to get paid more because the cost of living is substantially higher in Germany. Everything is more expensive here, and thus, people need to be paid more in order to be able to survive.

If an American and German worker each get paid $ 60 an hour in the US and Germany respectively, the American worker can buy more with $ 60 in America than the German worker can in Germany with the same $ 60.

Once external factors like typical European taxes and prices are factored in, the disparity between the wages of both workers isn't that big.

also, europeans do pay more for the vehicles... i wonder if people would be ok if manufacturers would raise vehicle prices by 20% in US, and then give all of that money back to employees... I bet there would be outrage :-)