After all, Germany’s exports have increased by nearly 11% in the first eight months of this year. Of course, we do know the argument that German exports are being decoupled from domestic value added owing to the increase in imports of foreign intermediate goods. Germany, so the argument goes, is more and more passing on goods produced abroad.
This situation suggests that, broadly speaking, we have been facing a shortage of highly skilled workers and a surplus of lesser-skilled workers relative to the optimum needs of our capital stock.