The G20 meeting, where all the leaders of the major world economies met to discuss economic matters, may be the focus on the growing difference of opinions between Germany and the United States over which path to take to cure the world’s ailing economies.German leader Angela Merkel believes that the massive spending President Barack Obama is advocating is not right for her country to undertake.
Merkel - parroting the familiar refrain of most Conservatives - is a proponent, at this juncture, of curtailing spending, and sees merit in Germans engaging in more savings.
President Obama, on the other hand, wants the major economies like that of Germany (ranked number 4) to emulate the profligate spending he and U.S. lawmakers - at least the Democrats – have contributed to the world money supply.
Obama also wants Germany to curtail its' forays into exports, and focus its' fiscal policies on consumer spending, so as to spur economic growth.
Merkel may not be operating on her own accord concerning the fiscal policies that she is currently championing like any astute politician; she may be listening to her people’s voice on this matter. Many of the German people did not support the bailout (110 billion Euros) provided for Greece, or the 750 billion for the European safety net.
This posture by the German people of disagreeing on their version of bailouts mirrors the anger felt by the Tea Partiers in America.
Germany and China find themselves allies on the issue of exports, while the United States, Japan, France and England are in lock-step with President Obama’s spending policies to get the world’s economies out of their doldrums.
Merkel has said that the German people should realize that if they cut their budgets, then they will be secured in knowing that there will be funds in the future to support pension, health and elderly care.
Only time will tell whose version on the respective economies will prevail. But as of now, both Merkel and Obama are sticking with their cure for the ailing economies.
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