
The Fall 1999 Issue of The Global Connection, contains an article by
David Audretsch, "Can Schroeder Break the Industry-Labor-Government
Cartel?"
The article is a review of the current economic situation of Germany, with
respects to several different industrial segments, and its relationship to the
government.
From the article:
The economic model of the Sozialmarkwirtschaft
(Social Market Economy) at the heart of the Germany Wirtschaftsunder, or economic
miracle of the postwar era ha been based on consensus. This consensus
consisted of three principal actors--the industry employer associations, labor
unions, and the government. Through a broad spectrum of institutions,
such as the Work Councils, industry-wide wage agreements, and the apprentice
system, these actors provided the basis for unparalleled success in generating
high wages and levels of employment. Under this consensus, labor
fulfilled its obligation in the social contract by supplying workers with not
only the highest skill levels in the world but also the most disciplined.
continued...
For more information about The Global Connection, please see the GBIN
Web Site.

Audretsch, David. B, 1999, "Can Schroeder Break the Industry-Labor-Government
Cartel?" The Global Connection Bloomington, IN: Indiana University
7(1): 14-15.