Airstrip One

Senescence - 21st November 2002, 22.36

When an individual becomes old and retires from working life, their capital is often drawn down as they use both interest and principal to support their standard of living. The same analogy applies to a tired German economy, ossified and welfarist, living off its past successes in wealth creation, whilst suffering a slow but inexorable decline in growth, productivity and living standards.

What will be the results of stagnation in Mitteleuropa? None for a short while except a turning inwards and an unwillingness to finance guns at the expense of butter. After all, why should Germans work when "The unemployed in Germany are better off than many workers in Britain"

But they shouldn't worry. It will be some years yet before economic reality cames calling.