How did the German government address the economic crisis?

Answer : In the early 2000s, Germany embarked on a pro-growth deficit-reduction course coupled with structural labor market reforms. It lowered income taxes to improve growth and implemented critical labor market reforms to improve work incentives and boost manufacturing productivity.

To reduce the costs of its public pension program, it increased the statutory retirement age, eliminated early retirement clauses and changed the way it calculates pension payments. Germany also adopted cuts to public-sector pay (e.g., no more Christmas-related extra payments) and reduced subsidies for specific industries.

1. international: struggle for hegemony and empire outstrips the fiscal resources of the state

2. political conflict: conflict between the monarchy and the nobility over the “reform” of the tax system led to paralysis and bankruptcy.

3. the enlightenment: impulse for reform intensifies political conflicts; reinforces traditional aristocratic constitutionalism, one variant of which was laid out in montequieu’s spirit of the laws; introduces new notions of good government, the most radical being popular sovereignty, as in rousseau’s social contract [1762]; the attack on the regime and privileged class by the literary underground of “grub street; ” the broadening influence of public opinion.

4. social antagonisms between two rising groups: the aristocracy and the bourgeoisie

5. ineffective ruler: louis xvi

6. economic hardship, especially the agrarian crisis of 1788-89 generates popular discontent and disorders caused by food shortages.

donald carl johanson (born june 28, 1943) is an american paleoanthropologist. he is known for discovering – with yves coppens and maurice taieb – the fossil of a female hominin australopithecine known as "lucy" in the afar triangle region of hadar, ethiopia.

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