Ever since the unification of Germany in 1870, Germany has stood out as an economic powerhouse. Just prior to World War I, it had surpassed the United Kingdom in several key manufacturing areas and was ready to challenge the United States. By 1914, Germany was producing nearly 50% of the electrical equipment in the world. After the destruction of World War II, the United States realized that the stability of Europe depended not on the victors (the U.K. and France) but on the defeated, Germany. Picking up the pieces, Germany once again stepped up and became the strong core of Europe.

The ability of Germany to take such a dominate role in Europe was based on several factors, including a highly educated, disciplines and homogeneous population, excellent technology, cheap energy, and the luxury of living under the protective umbrella of the United States. When Europe had problems, such as the economic disaster of 2007-8, Germany took a strong lead in insuring stability and continuity in the banking industry. It was Germany, not any of the other Western European states which provided the base for the European type of welfare state. Unfortunately, as history shows, Germany can make many bad decisions for every good one.