Wednesday, March 20, 2013

Economic Collapse: Germany

Moving away from the developing nations. It is also time to point out that not only a developed nation, but one of the most economically powerful nations in Europe, Germany suffered an economic collapse in the 1990s that lasted nearly 6 years.  Their GDP contracted by 25% during this period and also illustrates that economic collapses aren't always the short and extreme contractions that we see with nations like Japan or Argentina, sometimes they are a gradual decline in GDP.

What is most interesting is that an economic collapse doesn't always entail massive societal decay and unrest like we see in Argentina, though I am willing to go out on a limb and theorize that there was an increase in crime and some unrest, and it has a lot to do with the nature of the collapse. Is it simply a severe economic contraction? Is there hyperinflation? What other factors would contribute to making a bad situation even worse?


  1. The west half took a hit. The east half (portion absorbed by the west in the 1990s) was very favorably impacted economically.

    1. I can imagine. I've hard that some of the Germans in the west are still somewhat ambivalent about the move, but I don't know if that is true or not.


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Seattle resident whose real name is Kevin Daniels. This blog covers the following topics, libertarian philosophy, realpolitik, western culture, history and the pursuit of truth from the perspective of a libertarian traditionalist.