Germany

by: Sigilfredo Munoz, and Paloma Perales

 Market Economy
Germany's economic policy is based on the concept of the social market economy.
In a market economy, consumers decide the answers to the three questions. They do
this by their choices of what to buy. No one tells companies what to make -- they make
whatever they think will sell. If they choose wrong, they go out of business.
Economic Systems :
Social Market Economy. The state guarantees the free
play of entrepreneurial forces, while at the same time
endeavoring to maintain the social balance.
Services and industry are the major systems as well
with a small percentage of agriculture.
 Social Market Economy
Social market economies aim to combine free initiative and social progress on the basis
of a competitive economy. The social market economy is opposed to laissez-faire
policies and to socialist economic systems and combines private enterprise with
regulation and state intervention to establish fair competition, maintaining a balance
between a high rate of economic growth, low inflation, low levels of unemployment, good
working conditions, social welfare, and public services.
Germany is the third largest exporter in the world with $1.516 trillion exported in 2012.
Exports account for more than one-third of national output. In 2014, Germany recorded
the highest trade surplus in the world worth $285 billion, making it the biggest capital
exporter globally.
Central elements of a free market economy such as private property, free foreign trade,
exchange of goods, and free formation of prices.
 Products
Germany is the largest producer of lignite (brown coal) in the world. Germany is also
rich in timber, iron ore, potash, salt, uranium, nickel, copper and natural gas. Energy in
Germany is sourced predominantly by fossil fuels, followed by nuclear power, and by
renewable energy like biomass (wood and biofuels), wind, hydro and solar.

Most of the country's products are in engineering, especially in automobiles, machinery,

metals, and chemical goods. Germany is the leading producer of wind turbines and
solar power technology in the world. Around two thirds of the world's leading trade fairs
take place in Germany.
 Main Industries
● iron and steel, coal, cement, mineral fuels,
chemicals, plastics, production machinery,
vehicles, trains, shipbuilding, space and
aircraft, machine tools, electronics,
information technology, optical and medical
apparatus, pharmaceuticals, food and
beverages, textiles
 GDP
The fourth-largest by nominal GDP in the world, and fifth by GDP (PPP).
The service sector contributes around 70% of the total GDP, industry 29.1%, and
agriculture 0.9%.
 Standards of Living
Germany is one of the countries with ● In terms of employment, some 73%
the highest standard of living in the world. of people aged 15 to 64 in Germany
Germany is one of the most developed have a paid job.
countries in the world in terms of life
expectancy, degree of literacy and
per-capita income. The healthcare system
enables comprehensive medical care,
whereby the social security systems of the
statutory health insurances, care and
accident insurance and unemployment
support protect people against existential
risks.
Social and Economic Issues
A growing number of Germans are poor and depend on welfare. In 2007, one in 6 children depended on
welfare. That is up from only one in 75 in 1965. Poverty rates seem to vary in different states. Families that
are headed by a single parent and working-class families with multiple children are most likely to be poor.
Unemployment rates vary by region, gender, educational attainment and ethnic group.

Working-class families from ethnic minorities with multiple children are the group most likely to be poor.
Families headed by a single parent are also more likely to experience economic hardship than others.

A low birth rate and an aging population, and social issues such as child poverty, many who drop out school,
unemployment and out of wedlock births.

Immigration continues to be a concern of both economic and social importance, as religion in education.
Germany has always been and still is a society with a considerable rate of immigration. Together with the
enactment of a new set of immigration laws, integration of migrants has become a main focus of official
federal policy.
Movements
● Anti-Immigration Movement in Germany Reignites Debate Over
National Identity.
● Pegida protests: Germany's anti-Islamic movement sparks furious
right-wing power struggle.
● Anti-nuclear movement in Germany
 Type of Government
● Constitution- The Basic Law for the Federal Republic of Germany is the constitution of Germany. It
was formally approved on 8 May 1949, and, with the signature of the Allies of World War II on 12
May, came into effect on 23 May, as the constitution of those states of West Germany that were
initially included within the Federal Republic.

● FEDERAL REPUBLIC

● CONSTITUTIONAL REPUBLIC

● PARLIAMENTARY REPUBLIC

● REPRESENTATIVE DEMOCRACY