Wherever social hardship arises, a target-driven and transparent tax and transfer system like the one we have in Germany should step in and act as a cushion. In any case, I find the protectionist rhetoric coming out of Washington very worrying, especially as Germany is increasingly in the sights of the US.
Accusations that Germany is taking advantage of the United States and other countries with an undervalued currency are more than absurd. While there is a kernel of truth in the argument that the US dollar is strong, the United States has, up until recently, enjoyed a very favourable competitive position for almost a decade.