The End of Economic Man, Chapter 6 (pt 3)

I’m going to work to finish this book next week. I have spent a month on this one even though it is far from central to my work. The macro economics is fascinating, however. Drucker claims that the validity of his argument can be seen in the unfavorable balance of German trade.

The Germans are distorting their economy by giving people non-economic rewards and protecting the farmer from industrialization. In the process, this prevents Germany from developing the resources it needs and causes an unfavorable balance of trade.

Of course, we have just survived an era in which macro economics failed to predict a collapse of housing prices and the failure of a housing market.