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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.