We're spending money on transport infrastructure, the social safety net, clean energy, and healthcare.  Germany has some of the best transport infrastructure in the world.  It's rail system is great and it is a pleasure to drive on the Audobon.  Each lane has a speed and everyone on the road respects the rules.  In my experience, you're safer because you can simultaneously drive fast and there aren't any idiot drivers on the road.  They have a generous (maybe too generous) unemployment system.  They have the highest use of solar and biogas in the world (maybe wind too).  Their engineers are already developing, commercializing, and deploying the clean technologies and efficient cars of America's future. They already have a universal healthcare system.

Germany has made the investments that we're finally catching up on, so what would a wise fiscal stimulus from Germany look like?  Ironically enough, I think the Republican version of 'stimulus' might actually make sense for Germany.  A cut in business and individual income taxes combined with an ease in regulations for small business might help revive their domestic marketplace.  As a believer in Keynesian economics, I think the German government should invest/spend on something, but I'm not sure what.  As I said earlier, I understand Merkel's position and could see that she might be annoyed by the calls for fiscal stimulus.

Germany's economy is by no means perfect, but it does seem that its 'socialist' policies have  put them in good position to weather the downturn.  I wonder if Obama is best served by focusing on convincing Merkel to take leadership and help the other Euro-Zone economies rather than just barking up the fiscal stimulus tree.