Category: Germany

German 30-year yield drops below zero for the first time ever

German 30-year yield drops below zero for the first time ever

Demonstrationen für soziales und liberales Europa

Demonstrationen für soziales und liberales Europa

Pentagon warns EU against blocking U.S. companies from defense pact

Pentagon warns EU against blocking U.S. companies from defense pact:

Some news outlets spin this as the US being against a joint EU military cooperation.

In reality, the US doesn’t want to see its arms manufacturers excluded from supplying any potential EU defence pact and threads to exclude European manufacturers from US contracts.

Average Salary in European Union 2017

Average Salary in European Union 2017:

I found the perfect example to explain the difference between “GDP per capita” and “GDP per capita, PPP”.

Denmark vs Germany

We all know that Denmark has some of the highest salaries in the EU. But, as everybody who ever been there will be able to tell you, living there is also really expensive.

Within the EU: Luxembourg, Denmark and Ireland have some of the highest salaries. But what does that actually buy you? This is what PPP (Purchasing Power Parity) tries to answer.

But first, let me go one step back and quickly point out the obvious. Comparing the GDP (Gross Domestic Product) as a total over nations, especially with very different population numbers, isn’t going to be that useful in most of the cases. data source 

The obvious solution is “GDP per Capita”, where one simply divide the GDP of a nation by the amount of people living there. This gives a very different picture indeed. data source 

That doesn’t necessarily translates directly to salaries, but gives a very good example of what people there earn. It also does not say anything about how well that wealth is distribute between poor and rich, this is another topic for another day.

But have a look how far apart Denmark with a GDP per capita of $56k is from Germany with $44k.

But Denmark isn’t part of the EuroZone and, as mentioned, living there is noticeably more expensive.

What purchasing power parity does, is to look at how expensive some products are compared in $ USD to find out how much that money actually buys you. So what do you think, Germans or the Danish, who will get more for their salary? data source

Despite a 20% difference in salary, Germany and Denmark are almost identical.

So if you want to save a lot of money, Luxembourg and Ireland look a lot more attractive.

Money isn’t everything.

Despite that, Denmark and Germany usually ranks as one of the best places to live in the world. Typically ahead of both Luxembourg and Ireland.

See ONI Quality of Nationality Index 

So what does that tell you?

If the accumulation of money is more important to you than the quality of life, you need to look at how much the cost of living is and not just the size of your pay-cheque.

Happiness isn’t about money or how expensive life is. It is a question of what you get for it. Not enough will guarantee misery, true. But after a certain threshold other factors start to become more important. Things like personal safety, a clean environment and being surrounded by other happy people is much more important than how big the balance on your current account is at the end of the month.

European Union Membership Referendum

EU-Kommissarin reist zu Handelsgesprächen in USA

EU-Kommissarin reist zu Handelsgesprächen in USA

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The problem with German | CIOL (Chartered Institute of Linguists)

The problem with German | CIOL (Chartered Institute of Linguists):

Germany urges other EU states to also stop arms exports to Saudi Arabia

Germany urges other EU states to also stop arms exports to Saudi Arabia

Supermarket stops selling foreign goods to make brilliant point about racism

Supermarket stops selling foreign goods to make brilliant point about racism: