Fine for Foreigners

Modern German society is predicated on broad political consensus and a high degree of social solidarity. Though growing, the gap between rich and poor is less pronounced than in many countries, largely the result of massive state intervention. Taxation is comparatively high, while social benefits are relatively generous.

As foreigners quickly come to realize, life in this crowded country is highly regulated and rather bureaucratic. Free enterprise does not always sit well with the country’s collectivist instincts though. Germans like to feel that, come what may, they’re all in the same boat.

The viability of the country’s social market model in the era of globalization has long been hotly debated. Unemployment is stubbornly high and growth is often sluggish. In times of crisis though, the country uses instruments that politician in many other countries would not dare to consider. The demographic trend is as dire as in most other developed economies.

Despite this, the standard of living in the world’s third-largest economy is enviably high, and Germany remains a leading world exporter.