Gerhard Schroder served as German Chancellor from 1998-2005.(wiki photo)
Why is Germany in such great economic shape when most of the rest of Europe seems to be going up in economic flames?
I argue it is because of the lower taxes, welfare reform, and regulation reform agenda Gerhard Schroder implemented during his tenure as German Chancellor from 1998-2005.
Going against the wishes of many in his party (Social Democratic Party) and the largely influential labor unions, Schroeder implemented the highly controversial "Agenda 2010 reform program, which included cuts in the social welfare system (national health insurance, unemployment payments, pensions), lowered taxes, and reformed regulations on employment and payment."
The benefits of his economic policies did not take into affect right away. Unemployment in Germany soared to over 5.2 million people in February 2005 near the end of Schroder's term. But by May 2007, it had dropped to 3.8 million people. A drop of over 26.9%.
What Schroder had was courage. He knew his policies were right. It cost him the election to current German chancellor Angela Merkel, but the effects of his policies are a major contributor to Germany's current strength.
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Source: http://neilski.typepad.com/chicago_gold_and_silver_i/2012/10/be-like-schroder.html
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