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Krugman points out that the inflation adjusted wages of non-supervisory workers in the retail field in America has declined by 30% since 1973. He says there are no adverse effects on unemployment because workers in retail are not competing with workers in other countries as happens in manufacturing. They are also some of the lowest paid workers to begin with, and the numbers are not small. One estimate is that here are 30 million workers who would benefit from an increase in the minimum wage from the current level of $7.25 to $10.10. State by state comparisons provide proof of this as no evidence of losses in employment are to be seen when one state has raised the minimum wage and another neighboring state has not. Germany is facing a similiar problem of low paid temporary workers and a new coalition government is planning an increase in the minimum wage in 2014 as a response to increasing inequality and disparity in incomes developing in the last two decades.

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Merkel's leadership as Germany goes through the economic crisis. There is not much enthusiasm for further reforms among the Social Democrats or the Christian Democrats. Other than raising the retirement age to 67, the mood is not for any changes in that direction. The economy will contract by 6.1% but Merkel's decision is not to go in for a big stimulus under pressure from the US, and instead stay with the status quo combined with help to workers for unemployment benefits and for retention of workers by companies. As elections approach Merkel is considered favorably, and according to a recent poll by Forschungsgruppe Wahlen nearly 60% are satisfied with the grand coalition of the CDU and the SPD, 78% think Ms Merkel has done well as chancellor, and 58% want her to remain on the job. Actually Merkel's popularity is behind the CDU's prospects, the CDU itself is popular among only 35% of voters. Her analytical habits from her training as a physicist show in the way she is governing, which is thoughtful, and connects well with voters. Merkel benefits from the reduction in unemployment. Unemployment fell from around nearly 5 million in 2005 to around 3 million in 2008. The risk is that Merkel's popularity may be affected by an increase in unemployment to 5.1 million from the averaage of 3.3 million in 2008, according to an OECD estimate. Merkel stands behind a German response to the crisis which is to support the priciples of a social-market economy, make unemployment as least painful as possible to the jobless, to keep every job that can be saved in the nonfinancial sector with a 115 billion euro "Germany fund" providing guarantees and credits to companies that are in trouble because of the credit crisis. Stimulus packages of 64 billion euros supported the auto industry with subsidies to car buyers, and subsidies to keep workers intheir jobs. The idea was to come up with a German version of the response to the crisis by balancing the need to respond based on German conditions, and the concerns for inflation and the budget deficit, that is shared by most Germans. THe vision offered by Merkel is that of a physicist daughter of a protestant minister in East Germany, who is low on the rhetoric and good on substance, and willing to make decisions based on careful study and discernment rather than ideology, without sharp swings in any direction. Her vision comes from her days as environment minister, which is quietly pushing Germany into the forefront of countries developing renewable energy, moving ahead in energy efficiency, with anational goal of cutting emissions by 40% by 2020. The other areas are immigration and education, both key to the future of Germany because of the huge demographic change happening there. She has afamily minister Ursula von der Leyden, who introduced "parents pay", a14 month stipend for parents of newborn children linked to salaries, and to to improve daycare by providing places for 35% of children aged three or less by 2013. And Merkel has approved 18 billion euros of additional funding for research and universities. Says Leyden Merkel has made "daycare" an acceptable term in the CDU, and made Germans accept that they are an immigration country. Which tells you that you have to look closely to find the reasons for Merkel's popularity, which does not carry the rhetoric of an Obama, but is just as effective in German conditions. There are deepseated demographic changes going on in German society, which require a cultural change, and change in mindset, such as that for daycare, immigration, and blending the best of the old in the social market economy with the new like the changes in the educational system. The Economist says that in big cities today nearly half of the children under 15 are immigrants or their children and grandchildren, who are more likely to be poorer, unemployed and with less education. ...

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Peter Altmaier is director of the chancellery in Berlin, and is the person closest to Angela Merkel. This report in the Economist points out that Altmaier has played a critical role in steps taken by Merkel- as chief whip in parliament for the CDU during the Greece financial crisis and bailouts, as environment minister implementing the program away from coal based electricity, and in negotiating deals such as the deal with Turkey on refugees, and now with Brexit negotiations. Merkel has asked Altmaier to write her manifesto for the September 2017 election. A member of the CDU's liberal wing, Altmaier is known for being a scholar on German history, especially Bismarck, and a workaholic. Here he is mentioned as a bridge maker for the CDU to the Greens Party and was part of a group of CDU and Green Party politicians who met at an Italian restaurant in Bonn. As the moderates are now dominant in the Greens Party, a CDU coalition with the Greens could be shaped by Altmaier if the election results move in that direction. ...

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Debate in Germany over whether there should be exception to the minimum wage agreement of 8.50 euros per hour. The head of the federal employment agency, Heinrich Alt, says a universal minimum wage would reduce incentives for young people to join vocational training. The new labor minister, Social Democrat Andrea Nahles, says "there will be no exceptions, notwithstanding all the escape fantasies." The Social Democrats insisted on the minimum wage to win support from rank and file working class members after losing support in its own base with the increase in the low wage sector in Germany. Unemployment in Germany is less than 5%, but this comes with an increase in lower wage workers as part of the reforms under the Social Democrat Schroeder administration when unemployment was close to 10%. Economists say the increase in wages would increase weak consumer spending in Germany and increase imports from other eurozone countries. In 2011 the share of the German population making less than the new minimum wage of 8.50 euros an hour, according to the German Institute for Economic Research, is- for former East Germany 27%, for former West Germany 15%, for ages under 24 years 44%, for ages 25 to 60 years 15%. This does not affect the manufacturing sector in East Germany as wages in the sector are above 8.50 euros. The other problem is that wages appear to be declining in Germany, with wages decreasing by 0.3% in October 2013, according to the Federal Statistical Office. ...

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As growth slows in Germany, with contraction in the second quarter followed by expected growth of annualized 1% in the remainder of the year, debate is growting for tax cuts and ways to promote business investment. DIW, a think tank in Berlin, says the government's goal of a balanced budget may be unsustainable in the current economic climate. Deep spending cuts in Spain and Italy have not been supported by increased spending in Germany, say critics, leading to a too tight fiscal policy for the weak state Europe is in. ECB president Draghi is also pointing out the the need for changes, by saying- "It may be useful to have a discussion on the overall fiscal stance of the euro area with the view to raising public investment where there is fiscal space to do so."

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Public opinion in Germany now senses that politicians including Angela Merkel are reluctant to tell Germans that debt reduction has to be part of the solution for Greece, that some of the billions are lost and never coming back. They sense that Merkel and the Christian Democrats are waiting till after the elections in 2013 to bring this up directly. Even people on the street in Berlin know that Greece can never get back on its feet on the basis of spending cuts without debt reduction. The loan instalment approved in Nov. 2012 reflects the new approach of debt reduction but the German government is reluctant to talk about it. Opposition parliamentary leader Frank-Walter Steinmeier of the Social Democrats told ZDF German television: "The debt cut has not been avoided, it has been postponed to a time after the parliamentary elections. We are realistic and try to tell the people honestly and sincerely whats going on. Schauble and the present government try once more to finagle their way around the truth." Greece's debt has already reached 170% of GDP and can only go up as the economy shrinks further in year after year of recession. Norbert Barthle, a senior Christian Democrat, says if the debt reduction takes place today it sends the wrong signal to all the program countries, reducing the pressure for reforms and changes....

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The 90 minute nationally televised debate in Germany between Angela Merkel and Peter Steinbruck before the September 22, 2013 national elections.

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Recent polls suggest that 4 out of 5 Germans say they are not benefitting from the rebound. Germany has experienced growth with the recovery in export markets in Asia, but the benefits are not being seen at home. Experts at the OECD, and at Duisburg-Essen University's employment institute, say that there has been a downside to the unemployment rate having reached 7.6%; much of this gain has been achieved by expanding the low wage sector. Something like this has not happened in other European countries. The OECD employment outlook report 2010, reveals that 21.5% of Germans were employed in the low-wage sector in 2008, compared to 16% in 1998. The Duisburg-Essen University estimate is that 2.3 million workers were added in this sector from 1998 to 2008, with a total of 6.55 million workers in this sector in 2008. What is happening according to experts is that the Hartz IV labor-market reform is subsidizing the low wages paid by the private sector. And the German government has spent $50 billion in subsidies for people in this sector since 2005. The concern relates to consumer spending which is tight in Germany, even as exports have done well in the recovery from 2008. Average net income has actually fallen since 2004 in Germany, reaching 15,815 euros in 2009 from the figure of 16,471 euros in 2004. Germay has no minimum wage across all sectors. To have a minimum wage comparable to other European countries, hourly pay would have to be between 5.93 euros and 9.18 euros. The DGB group of unions have called for a 8.50 euro minimum wage. ...

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In a closely watched election Mr. Wilders of the far Right in Netherlands gains 20 seats, far behind centre right People's Party for Freedom and Democracy of prime minister Rutte who won 33 seats. The Dutch Green party which is strongly pro- Europe went from 4 seats to 14 seats, the Christian Democratic Appeal party gained 19 seats and the pro-European Democrats 66 party also gained 19 seats. In the 150 member parliament Rutte needs 76 seats to form a new coalition government, and he is likely to ally with these other parties to form a new government that supports strongly the European Union. This editorial in the NYT says the people of the Netherlands turned out in large numbers to support pro-European Union parties. Next the focus is on France and Marie Le Pen's challenge from the far Right. Cyber threats from Russia are seen as a way to discredit otherwise strong candidates, and the French government is taking this seriously. Chancellor Merkel said she "was very happy that a high turnout led to a very pro-European result," and president Hollande said this was "a clear victory against extremism."  ...

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Matthew Curtin reminds readers about a couple of facts about Germany. There has been a leftward movement of the Christian Democrats which has supported social protections in the global financial crisis. During the crisis collapsing exports that hit Germany hard. The Free Democrats as a result are the only party campaigning for reforms and lower taxes. The Christian Democrats think some of the Free Democrats plans are unrealistic. There is heavy public questioning of free market economics, and the reason the Social Democrats did so badly with only 23% of the vote is that it supported pro market reforms and lost some of its working class base. As the work subsidies expire in 2010 unemployment could hit 11%. So he says don't expect much in the way of reforms just because the Free Democrats got 15% of the vote and are in the coalition with Merkel.

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NATO's new guiding document and security concept now includes China for the first time as a shared security challenge. In the past there were concerns about China yet Germany and France continued economic engagement with China as before. The clearly worded statement by Xi Jinping and Putin expressing strong disapproval of a world in which the US and the EU play a prominent leadership role, made just before Russia launched its attack on Ukraine, has changed the sentiment in Europe. It is now becoming clear to Germany that the world has changed.Under Merkel Germany expanded trade ties with Russia on energy and with China as a major trading partner. The first steps are now being taken to decouple the trading relationship with China and restructure Germany's trade away from China towards other parts of the world including India, Vietnam and other Asian countries. Mr Scholz pointed to this needed shift during the Trade Fair in Hannover. As part of this shift NATO now sees cooperation with Indo-Pacific partners Australia, Japan, and South Korea and India essential for meeting the challenge of Russia today and of China over the long term. The NATO document says about China that "its stated ambitions and coercive policies, challenge our interests, security and values." Here are some of the ways the world has changed today. There are new administrations and newly elected leaders in the US, Japan, South Korea, and Germany. The new administrations are led by leaders in Japan and South Korea that are keen on working hand in hand with the US to meet the challenge from China. In the US president Biden seems determined to build up America's strength to meet any challenges China can pose. In Germany the administration is run by the SPD socialists with the Greens and the Free Democrats coalition. The Greens led by Robert Habeck and Annalena Baerbock have taken a strong position to face up to Russia's invasion in Ukraine, and Mr. Scholz is following step by step and has distanced himself from old SPD and CDU policies of  Angela Merkel of close commercial ties with Russia and China.  Indian prime minster Modi was a close partner at the G7 conference in Munich, Germany. The leaders of Japan and South Korea attended the NATO summit in Madrid and met with president Biden as shown here.   ...

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Former German chancellor from the SPD party, Gerhard Schroeder, is interviewed by Rayond Zhong of the WSJ. Here he describes his views on the way Agenda 2010 was implemented in 2003 in Germany to gain public support for changes to Germany's welfare state. He also talks about the eurozone crisis and how Angela Merkel has handled the crisis, and the right approach for an Agenda 2020 for Europe. The interview was made at Schroeder's law office in Hannover, Germany. This is a detailed and exceptional interview by Zhong covering all facets of the eurozone crisis and Germany's response. Schroeder says it was right to give Greece more time to make the reforms, so that the Greek people could see that this path would help in a positive way. In doing this he cites his own experience when as the reforms for Agenda 2010 to make Germany more competitive were taking place- including cuts in spending and lower taxes- he turned down his finance minister Hans Eichel's proposal in 2003 for an additional 20 billion euros in cuts to put Germany in compliance with EU law....

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Former finance minister Peer Steinbruck will be the SPD candidate for chancellor of Germany in the 2013 elections. He is is trusted in Germany for his economic experience and handling of the economy during 2008-2009, especially with the eurozone crisis worsening. Helmut Schmidt, a former chancellor has endorsed Steinbruck. He could draw some right wing support from Merkel. Merkel is personally popular in Germany but the CDU has lost elections in key states, and its partner the Free Democrats is considered weak.

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The German government has taken notice of hate speech on social media and social bots. The Justice Ministry convened a task force on hate speech on internet. Justice Minister Heiko Maas promised legal action against social media like facebook and twitter if it violated laws of libel and inciting to violence. Chancellor Merkel is bringing in a data science expert Professor Simon Hegelich of the Technical University of Berlin for consultations in Dec. 2016. Only AfD of the main parties, with its anti-immigration stance, has not come out in favor of not using social bots or paid trolls in the 2017 elections. Hegelich in talk with DW.com says it is hard to legislate on this because the whole phenomenon has not been fully understood. Article 5 of the Constitution provides for free speech. Hegelich also says the state of technology moves faster than legislation, and being international sites like facebook, twitter and others pose additional issues. He does not say laws cannot be helpful but that its not clear how best to do this. Thomas Jarzombek is a CDU member of parliament and digital media expert. He says social bots are more likely controlled by foreign countries, and fake news sites are more of a domestic problem. Making this worse is the incentive for unemployed journalists to do blogging of the crude and aggressive type to make more money. Jarzombek sees the need for the press to do more in its role for the democratic process to function properly, by functioning in the role of "enlightenment" and "awareness."  Jenna Behrends, a law student and CDU local politician for Berlin-Mitte, says it is necessary for good bots to be used to fight bad bots, in an article in Der Spiegel. Major mainstream media would then have to launch social bots themselves to fulfill their role of providing the public with correct and fair information free of excessive bias and distortion of the bad bots. One example of this is shown explicitly here of German chancellor Merkel's picture with the words " Guilty of betraying the people," with links to "Drain the swamp," and "Brexit." A more complex question is one of how to let people vent out frustration about the mainstream media itself being biased in favor of the established views and not doing enough or giving enough space to reflect alternative views, so that these can be debated without inflammatory language and deliberate distortion. A whole range of tools and modifications of behaviour may be necessary ahead of next years elections in France and Germany, now that the phenomenon is better understood following a vote in the Anglo-Saxon countries.   ...

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Australia's minimum wage is set for 2015 at $16.87 Australian dollars per hour, or $13.55 U.S. dollars for people over the age of 20. This is 30% higher than the minimum wage of $10 in California, and almost double the federal minimum wage in the U.S. For years since the late 1990's it has been increased as Australia benefitted from a commodities boom. With the lower employment in the mining and other sectors in 2015, and a fading of the commodities boom, experts say the minimum wage needs to be restrained to reflect the changes in the economy. Unemployment at 4% in 2008, is now 6.1%. Unemployment for people 15-24 not attending school increased to 14.1% in Nov. 2014, declining to 13.1% in Dec. Workers under 21 are paid much less significantly lower on a sliding scale, an idea that could be borrowed in the U.S. as the minimum wage is raised higher to provide adequate income for workers with families to support. Experts point to high unemployment in the 1990's even when there was a low minimum wage. As a matter of fairness the wage setting body in Australia takes into account the median wage. It was 54% of the median wage in 2013, compared to 37% for the U.S., according to the OECD....