Monday, October 07, 2002

Looking For Mr. Reagan (or Mrs. Thatcher)

Germany is in trouble. The economy is stagnant thanks to inflexible labor laws, an expensive social welfare system, and the on going costs of reunification. Ordinary Germans seem to recognize this and understand that their country is not headed in the right direction. However, they seem strangely apathetic about their future, an apathy borne out by the recent elections. Most of the Germans I spoke to before the election were going to vote for Schroeder although none of them really articulated any good reasons to support him other than they found him personally more appealing than Stoiber. In fact they didn't really seem all that interested in the upcoming election or concerned about the outcome. Most thought that Schroeder would win (a correct prediction) but didn't seem to mind if Stoiber would have been the victor. The overriding sentiment they expressed was that didn't matter who won because neither would make any significant changes to the status quo. The status quo that most had acknowledged was stumbling and headed for deeper troubles. It was an attitude that Homer Simpson might have expressed as "Yeah, but whaddya gonna do about it? "

Part of the reason for this was the two candidates themselves. Schroeder has essentially been a caretaker chancellor making small changes here and there but careful not to upset the unions and government dependents by undertaking any real reforms. At the same time he kept his Green allies at bay for the most part protecting German industry from further regulation and bailing out a couple of corporations on the verge of bankruptcy to retain favor from big business. His campaign slogan of "A modern chancellor for a modern country" was hardly awe inspiring although it did include a not-so-subtle dig on the age of his opponent.

But it came much closer to capturing the "vision thing" than Stoiber's promise of "competency for Germany." Hardly the rousing anthem for change that might have generated some excitement among the electorate and "energized the base" as American political analysts like to say. Basically Stoiber promised to reduce unemployment, cut taxes, and curb spending while not endangering any social welfare programs or changing the generous work benefit culture. His plan of gain without pain was greeted with cynical skepticism by the media and led many voters to come to the conclusion that there really wasn't a dimes bit of difference between the two contenders.

Schroeder's win means that Germany will continue to struggle economically without any prospect of the sort of long term changes taking place that are needed to right the ship. Of course a Stoiber win would likely have meant the same. What Germany needs is a strong leader with a clear and uncompromising view of what needs to change and how to get it done. (A strong democratic leader of course.) In the early 80's both the United States and Britain had such leaders emerge and pull their countries out of the economic and psychological doldrums that they had become bogged down. In the United States the answer to Jimmy Carter's "malaise" was Ronald Reagan. The answer to years of socialization of industry and bloated unions in Britain was Margaret Thatcher.

Today, Germany needs its own Reagan or Thatcher to bring about the reforms required to free up the enormous potential of the German economic machine and once again make it the envy of the world. Unfortunately, during this last election the choice for Germans was more like one between a Bill Clinton and a Bob Dole. Perhaps the apathy is understandable after all.

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