Germany’s Deindustrialisation Explained

[@SilentEire]

Hearing “The IRA’s impact on European industry” is wild without proper context 😂

[@Javadamutt]

Yep, it means a completely different thing to me

[@tiglishnobody8750]

How did IRA that based in Ireland manage impact Europe? I mean I kind impressed of their capabilities /S

[@MSDGroup-ez6zk]

How to fix the German economy? Learn its history. Germany is always on the wrong side of its history.

[@josjos2203]

I can’t believe the Irish did it again

[@MSDGroup-ez6zk]

@@tiglishnobody8750 well Germany is always on the wrong side of its history. IRA is aimed to create green energy for the world but at the same time, ExxonMobil's net profit hits a new record in human history. The majority of cars, commercial jets etc are using petrol.

[@SprocketHoles]

5 reasons Energy, energy, energy, energy, energy.

[@USEismydream]

You know something is wrong when you have a simple answer. And obv. that's not the only problem or even the biggest.

[@ja_u]

Not one answer. De-globalization and increased protectionism. Both from China and the US, paired with a pandemic, paired with an offensive war on the doorstep paired with economic struggles in China paired with economic pressure to perform better in the US.

[@weird-guy]

china,china

[@grodesby3422]

Mushroom! Mushroom!

[@ndchunter5516]

Don't forget Tax rate and bureaucracy

[@AdrianGlaser-v5q]

As a German I must say My soul died as he said Deutsche Qualität

[@LEONSKENNEDY91]

Same and I'm not a German A simple Google translate pronounce click would make it way different

[@cesruhf2605]

Germans always with the superficial details

[@Atlas_21]

@@cesruhf2605 Americans / British always horribly butcher even the most simple foreign words, they don't even try it seems.

[@SianaGearz]

Qualität kommt von Qual. Have you been tortured enough today?

[@Snailing_Suika]

bots dont have hearts fuck off "user-uk...."

[@josepedrosantiagosilva9625]

In Europe, there's a growing sense of neglect towards the younger generation. They face lower salaries, longer work hours, and increased responsibilities while witnessing a surge in billionaires, particularly in countries like Germany. The housing market adds to their woes, as property prices soar, making it difficult to afford homes, let alone start families. To compensate, cheap labor from abroad is often favored, leading to frustration among the youth, who feel betrayed. People aren't inherently racist, but this frustration arises when governments prioritize external labor over addressing domestic issues. It's high time politicians acknowledge and tackle these pressing concerns rather than resorting to distractions. The younger generation deserves meaningful change.

[@Tribuneoftheplebs]

This is why the far right and socialist parties are more popular with the youth.

[@doujinflip]

That’s a global phenomenon, not just Europe. Politicians worldwide have increasingly catered to older rich citizens at the expense of the less established youth.

[@Scroapy]

it has to also do with demographics, since elderly people want high pensions and often have way more capital than younger people.

[@jameslawrence3666]

until the Baby Boomers depart and take their huge cohort of votes with them there is little hope for the 'younger generations'

[@starmaker75]

Older gens: worker harder but we are not going to raise wages because we are paranoid about inflation and we need to hoard as munch money as possible. Also older gens: why are younger gens are always mentally exhausting and not having the time for childrensnand housing.

[@alex_zetsu]

I'll take a comment to mention how the German Green party celebrated the closing of domestic nuclear power plants which were replaced by _gas_ burning power plants that have large carbon dioxide emissions.

[@Baddy187]

Yup, nothing more to add.

[@chrislouis7913]

Yep, greens are destruction of Germany. How people still favour them is beyond me

[@MidWitPride]

When you are so paranoid of nuclear technology, that you trust Russia and its gas exports more than your own nuclear engineers to run a power plant.

[@gp-1542]

What type of backwards ass thinking is that?!

[@threecards333]

It is always ironic when "Greens" promote carbon economy more than conservatives because they fear nuclear energy. I say this as physical chemist doing environmental chemistry research for the US government. Often facepalm when hearing political environmentalists undermining environmental goals due to their love of ideology over actual science.

[@Elongated_Muskrat]

It seems "Strategic Ambiguity" isn't an economic policy.

[@TheDavidlloydjones]

Well no. It's a strategic policy.

[@2MinuteHockey]

It was never "Strategic Ambiguity" Germany historically aligned with Russia for hundreds of years for control of central, eastern Europe and Atlantic influence.

[@HeadsFullOfEyeballs]

@@2MinuteHockeyGermany hasn't even _existed_ for hundreds of years. It fought against Russia in both world wars. When exactly was this long period where Germany consistently aligned with Russia?

[@2MinuteHockey]

LOL Prussia and Germany are the same state, they partitioned their Jewish neighbor, Poland for hundreds of years Lenin was funded by the German government to start a civil war in Russia to NOT fight the sneaky Germans WWII was literally started with a German Russian pact@@HeadsFullOfEyeballs

[@jeanssold2131]

​@@HeadsFullOfEyeballsGermany as a region is much older than Germany as a nation state. Don't make a fool out of yourself

[@lookatmyroflcopter]

You could also add a lack of infrastructure development. With bridges, road and trains becoming worse and worse.

[@maximonamitzhian9064]

Today I tried to get to work, in the city center of Berlin. My Ubahn stop has not been working for 2 years now. I got in the Ersatzverkehr, that leaves me a couple of stations ahead, where I need to get down and take another Ersatz, because the line isnt working there either because of "cable stealing". This brings me 5 more stations forward, where I take the first leg of my Ubahn ride, but because of low maintenance, this train can only ride for 2 stations, before we need to get down and wait for another Ubahn to take us all the way to where I need to go. Germany is a clown world.

[@lookatmyroflcopter]

@maximonamitzhian9064 lol my work stop I HH is still becoming wheelchair friendly and has been since 2020? Ish

[@ja_u]

Which isn’t really an economic factor. DeutscheBahn trains being known as late is precisely because DB cargo and other freight trains have priority. A passenger train will have to wait and stand by if it’s holding up a freight train. This is also why DB made pretty nice profits last year and before, the cargo business is booming. On the backs of passengers who suffer the consequences. Roads are very well maintained, also because trucks are a major economic factor and need to run efficiently. So no, infrastructure development isn’t an economic but rather social problem, economy has priority

[@lookatmyroflcopter]

@@ja_u whilst I take your point, bridges collapsing and road infrastructure isn't going to help the economy. Plus infrastructure building is actually beneficial to an economy.

[@LoneWolfInsane]

Dont forget digitalisation

[@richdobbs6595]

You didn't mention that German electricity prices are some of the highest in Europe, making them also some of the highest in the world for places that attempt to do manufacturing.

[@sascha5724]

not really anymore a lot of EU countries have high prices comparable to germany

[@richdobbs6595]

@@sascha5724 I just watched a Good Times - Bad Times video that disagreed with that. If you have a source I'd like to review it.

[@MSDGroup-ez6zk]

How to fix the German economy? Learn its history. Germany is always on the wrong side of its history.

[@sascha5724]

@@richdobbs6595 Ok, I'm confused, I've tried to write a comment twice now with links but they are deleted, probably because of the links

[@Dendarang]

True, someone said that Andalusia is actually in a great position to become a manufacturing hub as it could source a lot of very cheap solar energy and it has relatively low wages for EU standards.

[@johnl.7754]

With Germany having low debt level it has longer time than most countries in figuring it out.

[@jakalordarkblood4331]

Assuming they get their heads out of the sand and start using it.

[@domninin]

The problem is that for some inexplicable reason there is a law in our constitution that forbids Germany from going into debt too much, so it doesn't matter how our debt levels are currently, we can't really go into more debt anyways

[@krainex]

You can just ignore it

[@toxiq5295]

​@@krainex They tried that xD

[@hendrx]

@@domninin that's a great way to prevent wreckless spending by the government

[@akattau]

Slogans and ideology over pragmatism.

[@LuKo3x5066]

shutting down nuclear plants was also a "brilliant" decision when it comes to tackling energy crisis

[@misterlinux9290]

"cheaper energy?, no thanks 🟩🟩🟩"

[@hendrx]

that after cutting ties with russia before even setting up the alternative

[@2MinuteHockey]

it was a ploy with Russia

[@HeadsFullOfEyeballs]

@@2MinuteHockeyIf by "ploy with Russia" you mean "it was much cheaper to buy slightly more Russian gas than to run a small handful of remaining nuclear power plants at a deficit", sure.

[@neilclark8087]

Germany hs no energy crisis. I did not experience a single blackout in 50 years and there is not a single fuel station in Gemany without gas.

[@DavisBrown-q1d]

I'm interested in investing, but I'm not sure where to start. Do you have any advice or contacts who can help me out?

[@AmeliaWilliams-qb6uy]

Investing can be complex, so it's smart to get professional guidance when building your financial portfolio.

[@DavidButler-nm3rt]

It's a great idea to have a conversation with financial advisors like Naomi Dean to reshape your portfolio.

[@RoySmith-jb5jl]

I spread out my $25k portfolio across various markets to diversify my investments.

[@NallyBrown-rp4ou]

That's awesome! I ended up making a net profit of about $115k by investing in high dividend yield stocks, ETFs, and equity.

[@riccardocaccamo1290]

Naomi Dean stands out from other brokers because of her realistic approach, unlike those who often set unattainable targets and fail to deliver. She's truly unique!

[@aresthedevil]

It's hard to compete on a global state, especially when the USA is giving massive social benefits to businesses to move operations from Europe to the states. Globalized socialized business benefits and the race to the bottom in the context of corporate benefits is the problem.

[@Klote3241]

The EU is doing the same... its not just simple manufacturing business that is seeing competition. its also investing into new technological ideas and IP that create jobs. Germany hasn't really done that and has been reliant on cheap resources from Russia. Germany is also really bureaucratic in its government. Allot of processes still run on slow manual labor making Germany inefficient and expensive.

[@toyotaprius79]

Accelerating climate collapse, ecocide, debt and rampant poverty and inequity too

[@toyotaprius79]

​@@Klote3241inefficient and expensive bureaucracy? Ireland: Hold me pint

[@Ganymede559]

That's what the EU did to Britain in the 70's, so I don't know what you're whining about.

[@TheDavidlloydjones]

You don't think "giving massive social benefits" is the opposite of "race to the bottom"??

[@tobiwan001]

A few items should be considered here that have been left out in the analysis: (1) German industrial output is down but not the value-added. So mainly low margin processes were shifted abroad or shut down. It also reflects that the few energy intensive products that also have low margins - like ammonia production - was shut down. But overall Germany has a low dependence on energy prices. The loss in competitiveness mainly comes from higher wages as real wage have grown despite the inflation. (2) There is no evidence whatsoever that for advanced economies a higher share of industry as percent of GDP means more growth or more wealth. In fact it might even be the opposite. The US spent decades in de-industrialisation which is why it depends on imports from Asia and Europe for most of its manufacturing. It did not damage growth as the latter mainly came from high-value services. I also question whether the state-subsidized re-industriasiation of America actually helps them. It will mainly lead to more debt and unsustainable zombie companies that rely on US subsidies. (3) Protectionism has been growing over the last 2 decades in the US. However, the main problem is low demand from China and other emerging markets which is due to their economic crises. (4) The growth in Germnay is low, but so is unemployment. Real wage growth is positive despite the inflation problem. Therefore, the term "crisis" seems overblown.

[@caezar55]

Unemployment is low because of low birth rates. In 1964 there werre 1,400,000 births in Germany. They are now 60 years old and retired or retiring soon. Now, the birth rate is half that at 700,000. That's the real reason unemployment has fallen in Germany since it peaked in 2005. Many people are now retired, rather than unemployed. But economically there's no difference - they are not working and dependent on the State.

[@foregone_roulette]

State subsidized reindustrialization is necessary because the world is deglobalizing, and it will eventually be a security concern and not just a financial concern. If illiterate pirates chucking rockets at ships in the Red Sea is causing this much disruption to global trade, imagine actual state sanctioned piracy and the carry on effects to the global economy. The EU needs to wake up and smell the roses, because the global trade that they have become massively dependent on is at a huge risk of either seeing significant reduction or going away entirely

[@foregone_roulette]

Governments need to subsidize reindustrialization, otherwise corporations will keep chasing the easy money of outsourcing to a country that eventually becomes a rival or a security risk. The world is currently deglobalizing, and it will be a security risk to not have your own industry. Look at what is happening in the red sea right now, and the massive impact a small group is having on international trade. The EU has become too dependent on global trade, and needs to invest in their own yards if they want to remain competitive in an increasingly fragmented world. It's no longer just about low costs or ease of operation, and it never should have been in the first place because people will always choose the easiest and cheapest solution even if it harms them.

[@tobiwan001]

@@caezar55 that’s partially true. The birth rates are low now and have fallen - as in basically all developed countries - but the number of people employed kept rising and went from record to record. But there have been quite a lot of movements within. I.e. more women are working but fewer are working full time. Also the average retirement age has risen by a year over the last decade. That unemployment is low is therefore partially demographic but also reflects the positive economic developments between 2000 and 2019. in addition, Germany covers a lot of its employment needs with high levels of immigration. Per capita immigration has been higher than in all G7 economies - maybe with the exception of Canada.

[@tobiwan001]

@@foregone_roulette I think it depends on what you consider to be so vital and essential that it cannot be traded. I‘d say that there are some products that are strategically important and should be produced at home. But so far nobody does that: The US I still dependent on Russian uranium for its reactors even two years after the war in Ukraine began, the EU needed to act quickly to become independent of Russian gas. China, the EU and the US are all trade dependent. The EU a bit more as it relies more on importing natural ressources. But e.g. if China wants to sell us solar cells basically for free while 3/4 of the value added and most of the jobs are in Europe, I guess it‘s an acceptable risk. But I get your point. I still don’t see why the US basically subsidizes all sorts of manufacturing in areas were it likely will never have a comparative advantage. I want to maximize value added and productivity with the additional restriction of not outsourcing security risks. What Europe really needs now is more weapons and ammunition production and a more Europe-wide integrated Defence industry. That’s the starting point.

[@jontalbot1]

It’s very difficult dealing with deindustrialisation. Here in the UK we have struggled with it for a century. It’s what underwrote Brexit- a vote of despair

[@davecopp9356]

The problem is also, that with the deindustrialisation less low skilled people are needed in the country, but the government in Germany still keeps letting millions of immigrants in. There is a documentary, Zombieland, which shows what is happening in the cities, homelessness, drug use, criminal rates through the roof and so on, also home prices go up because of it. It is a mess, mainly home made by the puppets that call themselves politicians. Greetings to the UK.

[@thedailygreatness]

Why would yall Brexit without having a deal with US on deck? Doesn't seem like things were thought through.

[@jontalbot1]

@@thedailygreatness That’s another question. The point is the parts of the country which voted most heavily for it were the UK equivalent of the US Rust Belt

[@chrimbus71]

@@jontalbot1 Do you mean "the deplorables" Hilary?

[@jontalbot1]

@@chrimbus71 In areas abandoned by industry those who can leave. Those left behind are often older, less educated and poor. The Brexit vote was largely one between the better educated and the not so well educated although it was led a small group of wealthy people who wish it was 1850. Those people include newspaper owners. They are used to influencing opinion in the UK but are powerless to do so in the EU so they hate it. They imagined that once clear of the EU they could turn Britain into a small government nineteenth state. The problem for them is almost no support for this outside their own very limited circles. Almost no one understands what the EU is or does. Couple that with almost total ignorance of economics and it is not surprising so many people were taken in by the Brexiteers, especially those who are desperate for change

[@gottlichhg]

I wonder how much is decoupling vs. Intellectual property theft of manufacturing equipment.

[@fiqhonomics]

Intellectual property is a western construct

[@benjaminbewhite]

I have a made in Germany flower pot and saucer, it's ancient and a beast...you can literally feel the craftsmanship in it.

[@ayushkumar-bg1xf]

Like bmw , least reliable car

[@tismon112]

Figuratively

[@theconqueringram5295]

Germany's deindustrialization seems to be the talk of the town. Just yesterday, Economics Explained and Good Times Bad Times uploaded videos on the subject.

[@Atlas_21]

These channels copy (aka steal) ideas from each other all the time.

[@yusaki8064]

In terms of manufacturing, China doing so well is really hurting European industry. I know from what my dad has told me being a design engineer here in the UK. It used to be that China made cheap stuff, but it was usually low in quality and prone to breakage. But if a company or whomever wanted something that was reliable, safe and lasted, they would go to a European country. Since China and Europe were serving slightly different needs, they weren’t competing as much. But my dad complained last year to me when he found out a company in China was making a product very similar to what he was working on, but was able to do it much cheaper (likely because of the Labour costs over there). And I expect similar things are now going on with manufacturers in Germany.

[@ferhatdikmen3762]

What has changed in China is they can produce all kind of quality.

[@yusaki8064]

@@ferhatdikmen3762 True

[@danmoreman954]

lol, no they can’t. China is struggling to master the manufacturing of non-lethal baby food.

[@ThePirateParrot]

Its not the labour cost that is hurting European manufacturers the most its material refining. Nearly all bulk material refining steel, aluminium, silicon, chemicals, rare earths copper etc have been pulled into china by an aggressive ccp effort low cost of energy and low environmental standards. That means they have a massive supply of local material that can can be purchased at or even below cost. This means there manufactures have a significant advantage in finished goods cost. Labour doesnt really come into the sort of highend modern manufacturing germany specialises in. Increasingly however the bulk material and a chemical work is beinging under cut. This can have large effects on local industries as many of the byproducts of these industries are crucial components of others.

[@tylerclayton6081]

China’s share of global manufacturing has been declining for years now. And China has to export a lot more of what it produces than developed countries since China’s own domestic consumption is already low and declining even further

[@volkerr.]

We need to fix the 🇩🇪 government. The economy will recover on its own then. Too much and bad political influence brings us down

[@rickbhattacharya2334]

Issues with Germany are from every way. They basically took these upon themselves. Let me explain. 1. Skilled immigration, many Western countries are dependent on skilled immigration as their native population is getting old but instead of allowing skilled immigrants they allowed unskilled immigrants from middle East and Africa which not only caused issue at social level as they don't integrate but also bacame a tax burden. 2. Skill retention, both skilled Germans and few immigrants who works in Germany leavs as the income is low compared to industry and taxes are very high. 3. Integration issues, Germany cry a lot about they need skilled people but everywhere you go they ask for C1 German. To be honest German is not a widely spoken language outside DACH region and many people don't see learning such a hard language at that age. Add extreme paperwork at every step of your life made it not a shining place for people with options to settle in. 4. Wrong geopolitical moves, Germany depends on cheap energy but instead of staying neutral they basically cut it's ties with Russia without finding cheaper alternatives plus their issues with nuclear they basically damaged theirs own industry. If Germany again want's to lead they need to fix these issues. Only allow skilled immigrants and kick those out who doesn't contribute to the country, find cheaper solution or pressure both parties at Ukraine war to stop the war , reduce paperwork for everything and make more English speaking jobs. Otherwise the day of other competitors from South Asia, Latin America passing it isn't fair away.

[@Mayhzon]

You're already wrong on point 1. We don't need any migrants. What we need is native Europeans to multiply again. End of story. Thus you are also wrong about point 3. All that said, you are correct on point 2 and 4. But spare me with your migration.

[@grimgy4409]

One aspect not mentioned is how for years politicians used large sums of money ro pay off debt while letting infrastructure rot and while underfinancing authoritys. Plus bureaucracy (!)

[@djp1234]

They can't even keep up with Russia in artillery shell production. This is embarrassing.

[@ja_u]

Germany isn’t in a war, Russia has switched their economy into a war economy. If you seriously compare those you have understood virtually nothing about how this shit works

[@MaxMustermann-vu8ir]

Can the USA keep up with North Korea in artillery shell production?

[@djp1234]

@@MaxMustermann-vu8ir yes, but the MAGA republicans are blocking it. They want dictators to win.

[@tom_demarco]

​@@MaxMustermann-vu8iryes

[@affordablex4914]

@@MaxMustermann-vu8iryes.

[@MrFalut]

Germany, and in fact Europe, totally missed the era of digitalization and IT. Better energy access won't change the fact that US/Asians have a massive tech advantage

[@paul1979uk2000]

That's true and it is an area that EU countries need to get to grips with, high-tech is the future and the EU countries have been missing the boat on that. But they are more than capable of getting back in the game, South Korea is a small economy but very high-tech, the EU economy is a lot bigger than them, it's high skilled and has a big population, it's just a matter of incentive and right government policies to make it happen, and I think it will happen as high-tech reduces other industries, like manufacturing could be replaced by robotics and A.I. in the sense that most manufacturing is done much closer to where the goods are being sold, meaning it wouldn't be good for exports, which is what Germany is, but Germany is also in a good position to be the Silicon Valley of the EU if they pushed hard on that.

[@nox5555]

@@paul1979uk2000 The EU is leading in some parts of high-tech, its just not the sexy parts. the Machines and chemicals fueling the next industrial revolution all come from Europe... Nvidia uses European machines and silicon to produce AI chips. Also Robots and industrial software are very strong industries in Europe. SAP is just alot less sexy than google.

[@MW_Asura]

So?

[@weird-guy]

Germany yes, other european countries not so much, yes we still aren´t on a asian level but china,india ect leapfrogged, in sweden almost no one uses money anymore, in my country when you go to some public and private services a lot of times they tell you to go online, now i can tell you why it seems otherwise and the awnser is simple old people we have too many of them and that skew statistics, also you know who own most companies you guess it old people that are relentant to invest because they already ´made it´in life and have only the fourth or sixth grade so they don´t understand the modern world.´ EMPSA - European Mobile Payment Systems Association if we reach interoperability between all the systems we can rival upi,alipay ect Most of us don´t love karaoke thats why germans didnt remember asians really love karaoke and that´s why google(usa) will take over car inforntainment systems

[@nox5555]

@@weird-guy Apps instead of cash is just stupid and complicates everything... Technology doesnt make everything better...

[@nickn5644]

The problem is that alot of german parties dont want to take on debt, even to it would make economic sense. The Idea of "schwarze Null" (zero state deficit) is in it self flawed but its a fiscally conservative talkingpoint in politics and alot of people belive in it because they dont understand it

[@hendrx]

it will prevent the government from throwing tax money out the window, which overall is a great thing

[@ivani3237]

UK never had such bullshit idea as "zero state deficit" - so they should be much better in development than Germany, right ???

[@Purjo92]

@@hendrxYou think that Germany is so incompetent that it cannot be trusted with short-term debt as a tool to boost its economy? Even more corrupt countries can do it sufficiently to make sense in economic terms. Even China can and it does it all the time!

[@HeadsFullOfEyeballs]

@@hendrxExcept you're _supposed_ to spend money you don't have, as a government, during a recession. It's called anticyclic fiscal policy. You take on debt for stimulus to quickly get out of a recession, then pay it off when the economy is running again. The problem is that democratic governments are reluctant to save while things are going well (it's much more popular with voters to spend the extra money on nice stuff), so the second part of the cycle tends to not happen.

[@Schmidtelpunkt]

@@HeadsFullOfEyeballs "during a recession" That is the thing - the black zero is a good concept not to be caught with the pants down, like in the financial crisis 2008. But the purpose of not being caught pants down cannot be just to maintain that black zero. It is not that the second part of the cycle isn't happen. With that philosophy it is really just the second part of that cycle happening all the time.

[@marvelv212]

Germany should get rid of US

[@freelnxer]

How? You got 34K US troops stationed in your backyard. PROTECTING you,😅 I assumed they are very persuasive people.

[@freelnxer]

May be Mr.Trump can do something about it, we'll see.🤣

[@docvolt5214]

Closing factories is moronic. The future is in heavy industrialization and automation

[@MSDGroup-ez6zk]

The thing is many people cannot survive in rich countries. the more expensive the rich countries' living costs, the lessor people including some most talented people can survive there.

[@eyeofthetiger7]

​@@MSDGroup-ez6zk The solution to that is heavy industrialization and automation which is the best way to lower the cost of goods and services. However, people still need to be employed.

[@MSDGroup-ez6zk]

@@eyeofthetiger7 actually automation creates more troubles

[@OPMDK]

“VW thought they’d selling loads of their IP goos in a place where private IP is state owned” 🙄🙄

[@user-propositionjoe]

Hard times caused by external factors, not the fault of Germany. It has enough money to weather the storm and adapt and bounce back.

[@ndchunter5516]

Some of the highest taxes and the overboard bureaucracy have nothing to do with external factors though

[@MesoScale]

Highest taxes, not true, look at basically whole Scandinavia. Bureaucracy on the other hand is heavy here, but does it really play a big role? I'd like to see some data on this.

[@peterp5099]

LNG is not cheap enough to make production in Germany as competitive as it was with Russian gas. Germany has essentially 3 options to recover it’s competitive advantage: 1. nuclear power. Takes about 20 years to fix the problem. 2. renewables. Takes about 30 years in total, but every wind turbine reduces the problem, so it would be only half as severe after half the time, as opposed to nuclear power, which would suddenly fix the problem at the end of the 20 years, but not help to reduce it before. 3. return to Russian gas. Building Nordstream 3 would take about 2 1/2 years, and would be the by far fastest way to recover German economy, but it would also require pretty radical and risky changes in Germany’s foreign policy. It boils down to the renewables being Plan A, Nordstream 3 being plan B in case the renewables don’t work well enough and fast enough and the situation becomes desperate enough to take the risks involved, and nuclear power being a mock alternative wielded by conservative politicians to pretend they have a better alternative.

[@arcadianfox8127]

Oh Lordie, I remember last time Germany had a recession.... Please not again

[@Mayhzon]

Time to get your beret, soldier. I already hear Hans screaming from the back...

[@jorisgulinck8724]

Germany can shift their industry tot military equipment. That way Europe can become less dependent of America. Trump wants that every European country spends 2%of its GDP on its military. So a lot of money can be made here.

[@GrammarNaziAUS]

A good idea. Too bad Germany is completely unwilling to pick up that torch and regear their industry for something that can actually survive in future. So long as Chinese subsidies continue, they simply can never compete with them, and I don't think those subsidies are going to end any time soon. The provincial governments of China may be heavily indebted, but the federal government isn't, and has a boatload of foreign currency it can use to support these subsidies.

[@HeadsFullOfEyeballs]

Military industry is very energy-intensive too, though. The problem for German industry right now is that we're cut off from our cheap Russian energy supply. I guess military equipment is usually so perversely overpriced that the energy cost only makes up a small fraction of the final price, but still.

[@GrammarNaziAUS]

@@HeadsFullOfEyeballs As you say, military equipment is usually extremely overpriced. As it stands, the EU has need for military equipment, and Germany is best positioned to provide it. If Germany had any sense, it would pivot towards military production, and let other EU members specialise towards other, non-military things. After all, what's the point of the EU, if not to allow these individual countries to specialise, but not pay too high a price for it? In reality, it's the inverse, to support dated industries, mostly, unfortunately.

[@MesoScale]

This is why Trump wants this in the first place. He needed EU to buy more American weapons.

[@Nils.Minimalist]

As a German, I no longer want to work so much just to say that we are the economic powerhouse of Europe. Besides working, there is a life to live, and we only have this one life. Blessed be the 4-day working week that I have had for 2 years now.

[@toyotaprius79]

Ireland did pay off 42% on your and France's central bank debt in exchange for a dreadful work-life balance, bullshit jobs and a bullshit economy, among the highest prices in the EU and a depressing renting/housing/homelessness crisis.

[@dejanbusse805]

Germany has the lowest hours worked per person per year in the entire world lol. Saying we are currently working so much for our status of economic powerhouse is ridiculous. The work for that status was done in the 1950s to 1990s.

[@katieee4915]

​@@dejanbusse805it depends also on how you count work hours German work hours tend to be a lot more efficiently and accurately measured than, lets say, greek work hours

[@MetallicReg]

@@dejanbusse805When you were around in the world and know how most other countries „work“, you would realize that the Germans really indeed *work* in the work hours and don’t just appear working in a defined space. A classic issue of such like Japan that glorify one of the most toxic work cultures there is.

[@GrammarNaziAUS]

​@@dejanbusse805Yeah. The German state and society used to have some pretty admirable aspects, but nowadays, it's just kinda pathetic.

[@dariusduesentrieb]

There is a potential buffer overflow in the code shown at 8:00.

[@PingSharp]

1:52 "Deutsche Qwalitäat"

[@bythecliff]

Here's a solution. STOP depending on exports and imports. Develop policies towards a self-contained economy. You don't have to "grow" all the time. Normal people just want to live with their basic needs accounted for. Ensure a self contained economy with strong supply chains for basic necessities. Everything else will fall into place.

[@julienckjm7430]

So in other words, Germany sanctioned itself?😂😂

[@Baddy187]

Regulations are a huge factor in this. They have been stacked on top of eachother during the last decades. This goes for business and private people.

[@spadress]

5:30 You must mean the end of North Stream 1. NS 2 was never operational

[@DieGurke_]

It was read till america blew it up

[@diogorodrigues747]

@@DieGurke_ Indeed it was ready, but opening it wouldn't solve much though - remember that pipeline gas wasn't sanctioned, Russia simply reduced the gas flow for blackmail reasons and absurdly increased the price with that. The peak gas price occured in August 2022, while the NordStream explosion was a month and a half after. Also that claim about America is BS for now.

[@DieGurke_]

@@diogorodrigues747 because america lied to ukraine and pushed them to war

[@santiagopayan2531]

@@diogorodrigues747 Yes, but in ensure Germany would not back out. In fact, int ensure Germany will have to buy USA LNG,. which costs 4x times more. In fatc, let's say teh AFD gets to power, and reverse all teh sanctions etc, they will not have Nordstrem 2 available.

[@MSDGroup-ez6zk]

How to fix the German economy? Learn its history. Germany is always on the wrong side of its history.

[@antoniomantilla7080]

WITHOUT ENERGY GERMANY IS IMPOSSIBLE TO MANUFACTURER ANYTHINGS

[@vitoanania6042]

whatever US does, the only option it's decoupling from China. Dependency on them (hoping trade would make them more "democratic") and Russia (who the hell attacks their biggest customers' allies) were understandable but big mistakes with the benefit of the hindsight

[@Schmidtelpunkt]

2014 would already have been hindsight. In 2022 It was just pure idiocy. And that parade of imbeciles causing it in the first place will be very likely reelected.

[@patrickbateman1660]

No it's the opposite. The US has sunk the German economy. The US started the trade war with china and forced Germany off Russian oil. The German economy was reliant on Chinese exports and Russian oil.

[@RCSVirginia]

As I posted on another YT video on this very topic: "Could it be that putting extreme economic pressures on your own native-born citizens, dismantling your nuclear power industry, not requiring the machinery of the alternative-energy industry to be manufactured in your own country or your fellow European Union countries, not properly assisting your own families with children and flooding your country with illegal aliens who never should have been there in the first place paid for by your own taxpayers were all colossal mistakes?"

[@WL113]

I'm living here and I have only one dream: relocate to any other developed country with my family. I can't stress enough how much I hate this crazy place

[@USEismydream]

Klar, weil die Probleme von Deutschland auch fundamental andere sind und woanders nicht auch Probleme existieren. Gerade hinsichtlich crazy, puh, glaube dir ist die politische Stabilität in Deutschland absolut nicht bewusst und wie vermessen deine Einschätzung tatsächlich ist. Guck doch mal bitte nach was denn aktuell noch so alls als vollständige Demokratie gilt, gibt dafür ja den democracy Index. Da wirst du schnell bemerken, die Auswahl der Länder ist sehr gering. Ich verstehe ja Kritik aber dieses komische narrativ des ach so schlimmen Deutschlands ist halt so insane, wenn gleich verbreitet unter Menschen die leider nicht mal wirklich die nationale Politik durchschauen, geschweige denn etwas aus anderen Ländern mitbekommen.

[@weird-guy]

Germany is one the better countries in the eu, are you going to the usa or to the nordics Whats so bad in germany compared to other developed country? Or are you going to do a usa and uk style mo were they go live in poorer developed or developing countries while earning a income from their home country? they even prefer the fancy word of expat instead of the word immigrants 🤣

[@stefang5639]

If you take into account that Germany had to suddenly decouple from russian gas in just one summer then the numbers aren't so bad.

[@senseikanacke69]

Here in germany we all know the reason. Its Just because of the green party here!!!

[@Purjo92]

EU really needs its own "Made in EU" campaign. We need protectionism as a tool to maintain our industries' competitiveness against those countries that have higher emissions and we need to be proactive in setting new tariffs even against the United States which has double per capita emissions compared to the EU. We still should not abandon globalization completely, but strong tariff policies are needed as the world is getting more polarized and many countries want to be free-riders in the global effort to preserve our planet for future generations. It's not only about CO2, there are other things to consider like other gas emissions, microplastics, biodiversity, and outsourcing of Western consumers emissions to poorer places like China and Southeast Asia. Also, Germany should get rid of its dumb "no debt" policy which has zero economic sense. Instead of starving themself, they should look at what the US is doing with its debt-driven growth model that has allowed them to stay the number one economy in the West.

[@007GoldenLion]

😅 If protectionism worked, Argentina and Brazil would be the richest countries in the world.....

[@JSK010]

German just needs to make goods and services other people in the EU want to consume. No special campaigns needed.

[@GabrielCazorlaPersson1]

@@007GoldenLion Protectionism worked quite well for the USA

[@niku4154]

@@007GoldenLion Argentina and Brazil are not nearly as self sufficient as a Euro-Atlantic Trading Unit.

[@c.simmons2147]

The EU has had protectionist policies. That's how Germany was able to maintain a consistent trade surplus. In any type of true free market, it would be impossible to maintain a trade surplus for as long as Germany or China have been. Now the rest of the world is catching on to the idea.

[@misterlinux9290]

Greens: "we did it! We saved the world from the nuclear" France: "⚡⚡⚡"

[@derechtepurkus]

Except it wasnt the greens mate

[@HeadsFullOfEyeballs]

Germany's divestment from nuclear power was decided under the preceding conservative government, not by the Greens. Also, France's nuclear power plants are in terrible shape and keep failing during summer, to the point that France has had to regularly buy electricity from Germany, so I don't know about "⚡⚡⚡".

[@misterlinux9290]

​​@@derechtepurkus"energy? No thanks" - greens in the coalition government be like 🤓

[@justaplayer94]

@@derechtepurkus They literally supported the decision and would have done it sooner. Yes the "Conservatives" ( Merkel Era wasn't really conservative let's be honest here ) It was done but atleast they realise the mistake while the Current Coalition is still defending it and say it was a good choice.

[@wisdomnutrition6490]

I am sure that rising energy costs due to the failed economic and military war on Russia would affect the competitiveness of German industry, which has been the base of its economy

[@aliceg6745]

Come on, German people, pull yourself together!!! I completely believe in Germany 🇩🇪😘🇫🇷.

[@Rod-bp8ow]

Germany can always realize, reconcile its books, its account balance, its approach to businesses and economic activities. Credikt appliccaccion, warranti. Calidad exceptionale, Germane.

[@brushlickerstudio28]

Maybe Germany is failing because they spent last 30 years pumping their cooperation with Russia over heads of its eastern allies like Czech republic, Poland and Baltics. Now Russia nationalised their factories and such, materials are no longer that cheap and accessible and all of the sudden industry is in trouble. Mildly shocking, really.

[@brushlickerstudio28]

Volkswagen bought up Skoda only to fail in near future. This way Czech industry got vandalised, and brand will eventually leave Europe, just because someone was too greedy. Such enormous mismanagement of resources is a tragedy to entire continent.

[@ObeySilence]

Germany is failing because the US humiliated Russia so much that they attacked Ukraine. When we get a right wing government in Germany we just ally up again with Russia and China and we get the energy our economy needs to run. US-American think tanks have inflitrated German geopolitics. That will be over at some point. And when Germany freed itself from American shackles we lead Europe together with France against the Anglo-American empire!

[@masterlightjames950]

It was Germany who attacked Russia first, you dummy.

[@dnocturn84]

"Now Russia nationalised their factories and such, materials are no longer that cheap and accessible and all of the sudden industry is in trouble." This is not the problem. Sanctions and absolutely no access to (cheap) Russian resources are. Not just Russian gas and oil, but metals, chemicals, coal too, just to name a few.

[@bossss777]

Yes, germany should have cooperated with the 5million large baltic tigers, czechs and poles to get some nail painting services, more toilet cleaners, street sweepers and sex workers. are you serious? These countries already have germany as the largest trade partners already. germanys aggressive economic policy where it, for example, completely bought out, bankrupted and outcompeted the latvian industry that doesnt exist anymore after its accession to the eu (im from there) and picked up the workers to work in its german factories and toilets. industry needs cheap raw materials to be sustainable - which the germans denied themselves. im sure, however, that if germany had cooperated with estonia, instead of russia, it could have gotten those cheap raw materials. lmao. i sincerely hope germany becomes a banana republic, its got half of africa there now so with the industry moving to america its a just a question of time.

[@prunabluepepper]

The Nr 1 reason for the economic decline is ridiculously high costs because of high taxes and self-made inflation; followed closely by Nr. 2 extreme bureaucracy.

[@geralt7144]

There are other issues. Electricity prices in Germany are rising due to the the dumb decession to shutdown all nuclear power plants. That means Germany must import expensive power from other countries. Over Regulations and high taxes on top.

[@MaxMustermann-vu8ir]

Energy prices in Germany actually have been decreasing over the last 18 months quite sharply.

[@geralt7144]

@@MaxMustermann-vu8ir Because of government subsidies. And not everywhere. There are costs called network charges, which rise with every wind or solarfarm.

[@Lord_Inquisitor7]

3:23 “But unfortunately for Germany this strategy didn’t really work out” A common theme of Merkel’s government it would seem La

[@magnvss]

The analysis is incomplete and even ignorant, disregarding available and publicized data: Germany's real crisis is the retirement of its most hardworking generation, set to occur in the next 10 or 20 years, without effective replacement. Efforts to attract skilled workers have been made, but skilled workers often do not remain in the country (as addressed in several available analyses), and the country needs them in the millions, a feat unlikely to be achieved. There is no way to avoid a demographic crisis, and this will not only impact the already strained pension system (research its current problems online) but also any plans for the future that one may aspire to have. No children equals no future (and no possibility of economic plans of any sort). Even if we were to return to pre-pandemic conditions, with cheap energy and willing buyers from major countries, the demographic crisis would still loom. However, we don't have those conditions, and on top of that, we face new challenges. It was only a matter of time before Chinese products evolved to have acceptable quality in certain markets, and America would also seek to regain control over its own production to be less vulnerable to the dictates of other countries. The demographic crisis is not just a German problem; it affects all developed countries. However, for cultural reasons, it is still being ignored, as facing it would require admitting the failure of incredibly ignorant ideologies and philosophies that are still upheld that led to decisions that now cannot be rectified without understanding basic biological and sociological realities, which have become politically taboo. Hence, the consequences.

[@tobiasbremner9623]

Interesting and well written comment. I find that I agree with many of your points. But I do have a question. "as facing it would require admitting the failure of incredibly ignorant ideologies and philosophies that are still upheld "....What are these ideologies and philosophies you are referring to? And I don't ask in a condescending tone. I am genuinely curious and would like to learn more.

[@magnvss]

@@tobiasbremner9623 It would be a little ample to respond, but I suspect you will get the idea: the ideologies and philosophies that propagated the massive incorporation of women into the workforce as a part of a "solution" for the so-feared "demographic explosion" of old times (you can even watch old movies like Soylent Green with the theme) and the push to make women's goals equal to that of men. By the way, it was not a baseless problem; the problem existed. The pill and the ability to control natality made it way more possible. What they didn't know is that "the solution" would be so efficient that one day it would end up on the other side of the spectrum, with a negative birth rate. Other changes complicated the issue: massive migration towards the cities (urban people have less children because their needs are bigger and they are costlier than in rural areas) and the abandonment of traditional values, each element (and there are many) were on step down the family shrinkage. In the specific case of Germany, work ethics came first and foremost, what put the country on the top list of those who would face such problems. In the moment, it felt great because you multiplied the workforce, shrank the need for children's care, and so on and so forth, but it was a ticking bomb. Now, many women (and men) even idealize never having a family or children (whatever the reason, and they have plenty). The state coming to the rescue on questions that in the old times were family assurances (like what happens in poor countries where families are still huge, that is, the children are those who will take care of their parents when old) weakened the idea that there was some value in having and raising (and loving and whatnot) children. Western people are crazy for pets and animals though, so the instinct is not lost, it's diverted... as they say "my babies" to their cats and dogs...

[@liberatusblair]

​@@tobiasbremner9623one such "ideology" is the current stance of the german government on migration since 2015 as they invited anyone who wants to come without properly integrating them into the workforce and culture, but at least as of late thats being reconsiderd. Additionally, the reduction in amenities that support building a family and/or having children in the first place like kindergartens, nannies, teachers for schools and medical facilities that have been severly reduced by the current minister of health. There are many issues thats germany is facing currently and the current government is not properly adressing even one of them, wasting funds on a war that is none and environmental accomodation that leads nowhere. You could write books about the shortcomings, honestly.

[@solsunman383]

@@magnvss There's nothing inherently wrong with moving women into the work place, and having equal rights to men. HOWEVER, to do so without also providing the social support for families to make up for the fact that both parents are working means that such a policy will lead to fewer families being created (and therefore a much smaller next generation). This is the case in the UK, where there is some of the lowest levels of support for childcare in Europe. As a result the native British population (by which I mean all races, religions and ethnicities that make up native-born Britons. Not just White British.) is falling steeply, with only high levels of immigration keeping the books balanced. Naturally, this leads to a great deal of resentment, as successive governments and economists have hailed immigration as the only solution to the demographic crisis, rather than trying to address the true cost of child-rearing, which has been placed squarely on the shoulders of the parents. In this case, you can see that removing women from work would actually have an adverse effect, as parents would have half the income to support their children (so even fewer women would have kids). In the past, families relied upon their wider members (grandparents, siblings and friends) to help raise children when the parents aren't around. However, (in the UK at least), entry level work is often centralised to the capital, London, leading to much of the younger generation having to leave home and live in London, where there is no support network. The cost of living is much higher in London as well. All in all, the current UK business model is set up to inadvertently punish large, young families. As a result, many of the millennial generation are putting off having children until they are much older (which will lead to fertility problems and a much smaller replacement generation).

[@magnvss]

@@solsunman383 You are attributing statements to me that I never made, so it would be quite complex to engage in any meaningful exchange if you are attributing words to me that I never wrote. Yes, moving women into the workforce has consequences, especially if they are young and before they have started families, as this delays the time and opportunity they could dedicate to forming families, as demonstrated by numerous studies. Biology still exists, regardless of rights. Equal rights have nothing to do with the consequences of exercising those rights on a society: hypothetically, everyone in the West could stop having children, but that doesn't mean that such action would result in positive outcomes. Of course, once you integrate women into the workforce, you are ensnared: initially, it may feel like having two full incomes, allowing many people to afford their first home, etc. However, over time, the relative purchasing power of such wages diminishes, causing this initial advantage to disappear. Thus, we are left with the worst of both worlds: few children (which are necessary for economic growth, supporting pensions, sustaining the system, etc.) and individuals forced to struggle, as a single wage is insufficient. Nevertheless, studies show that economics alone do not explain low birth rates: in all countries with negative birth rates (less than 2.1 per woman), wealthy people within those same countries exhibit similar birth rates. If economics were the sole reason for low birth rates, economically well-off individuals would have more children, given their access to various resources. In different countries where various options have been tried, from the wealthiest (Switzerland, Sweden, Luxembourg, etc.) to the most modest, no incentives provided to potential parents have resulted in a substantial increase in birth rates. There may be a slight improvement for a while, but then rates fall back to previous or even worse levels. Nowadays, not having children is idealized by many, irrespective of economic factors and other considerations. Are there exceptions? Yes, there are (some smaller groups that challenge the norm, even among developed countries), but discussing them would require a deeper understanding of certain cultural dynamics, which you may find challenging to assess

[@Hungmorad]

They also did something to their nuclear fleet, not mentioned regarding energy issues

[@Jersderakerguoe]

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

[@Suleferdinand]

The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.

[@tatianastarcic]

Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.

[@CraigLloyd-fz6ns]

Please can you leave the info of your investment advisor here? I’m in dire need for one

[@tatianastarcic]

Finding financial advisors like Margaret Johnson Arndt who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@ScottKindle-bk3hx]

I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

[@S41GON]

Can it recover? NO

[@JosephSolisAlcaydeAlberici]

It doesn't make sense for Germany to maintain its manufacturing industry, given that its population is aging and has higher labor costs but without stable cheap energy. Germany should learn from Luxembourg or the UK in transitioning itself into a financial-driven economy.

[@user-nh1yb9mk7y]

And how it's going in the UK. The country has been in the decline, overpriced, too reliant on financial services companies based in one city and dirty money coming from the third world oligarchs and cronies.

[@zackgravity7284]

Go back to agriculture instead

[@zackgravity7284]

​@@user-nh1yb9mk7ydont forget ireland either..

[@ivani3237]

Yes, Germany definitely looking at UK experience, that's why they trying to keep industry as long as possible

[@zackgravity7284]

@@ivani3237 industrialism is a false god

[@ReekieReels]

"The end of Nord Stream 2" = the blowing up of Nord Stream 2

[@affordablex4914]

Yea and?

[@asdasdasddgdgdfgdg]

German exports are almost at an all time high, car production has also significantly increased and energy prices are lower than before the invasion of Ukraine (and I can give sources for all of this). So where exactly is this supposed deindustrialisation?

[@MathewLewit]

Numbers don't lie. A lot of companies left for all sorts of reasons (energy, labour costs, taxes and bureaucracy). Also, energy for large companies copy spot prices and they are still much higher (over 50%) than pre-invasion. This industry also does not make decisions based on "now", Germany is expected to have severe energy cost disadvantage compared to USA/China/India and it will get worse as emission allowances for industries in EU are decreased every year. Things are getting worse quickly, but that does not mean "over night". It will take a couple of years until German households will see the full effects of this change.

[@asdasdasddgdgdfgdg]

@@MathewLewit thats literally my point though, numbers dont lie. So where are the numbers which prove that Germany is deindustrialising? I already gave 3 numbers which disprove the deindustrialisation narrative. Even crude steel production, which "everyone" said would collapse, is stable (and technically speaking even more profitable than before according to the German steel guild, 2022 was even a new record WRT sales revenue).

[@donparkvideos]

Yes, please give the sources for all your information

[@asdasdasddgdgdfgdg]

@@donparkvideos are you asking me or the other guy?

[@donparkvideos]

@@asdasdasddgdgdfgdgYou. Thanks.

[@michaelogrady1002]

This post is presenting Germany as some sort of economic basket case but it is the third largest economy in the wotld with a gdp of $4.5 trillion.Its debt to gdp ratio is 64 %with exports in 2023 vslued at $1.64 trillion with a trade surplus of $210 billion. Their manufacturing industries produce some of the most respected brands in the world.Given the choice of buying a prestige car brand most customers would opt for Munich over Detroit .Germany is a member of the EU, its Customs Union ,Single Market of 449 million.Germany has faced challenges in its recent history such as reunification. Other G7 countries slso face similar challenges but have less leeway to overcome them.

[@querch1066]

A much clearer explanation of Germany's state of affairs.

[@soup100]

LNG is more expensive than Russian nat gas. Germany screwed up.

[@loopinglui002]

VERY IMPORTANT FACTOR MISSING: Stupid politics significantly hurt the economy in Germany as well! Ridiculous policies were introduced......

[@Ianmundo]

one aspect which has an impact is the decline of German automotive design quality. VW and BMW have been releasing notoriously uglier models for years, and show no signs of reversing the trend.

[@bcdaron]

It’s not just design quality, it’s the terrible reliability quality.

[@Schmidtelpunkt]

They also bet against electric cars, because the government encouraged them. Then again, it probably does not matter, as Chine will have cheaper models anyway due to their access to the resources, just like when they took over the solar industry.

[@HeadsFullOfEyeballs]

@@Schmidtelpunkt _"They also bet against electric cars, because the government encouraged them."_ This is kind of backwards, actually. German car manufacturers were afraid to transition to electric vehicles, because all their expertise was in traditional engines. So they lobbied the government to support internal combustion cars.

[@Schmidtelpunkt]

@@HeadsFullOfEyeballsTrue. The encouragement was giving in to the lobbying. It is not like that government back then took any active action. They just created the appearance as if it could go on like it was forever. So ironically a Green government would probably have saved the German car industry.

[@oerthling]

​@@HeadsFullOfEyeballsWhich trades short term teem vs long term. The paradigm shift from ICE to VE is here and accelerating. Either German car industry catches up and manages to transform more quickly - or it will relinquish more market share for cars to Tesla and China. Tesla was always focused on EVs so has no legacy manufacturing to worry about (and could improve it's car building consistency during a time when it has hardly any competition for effective EVs). And China sees this as an opportunity. It's car manufacturers would have always had a hard time to compete with European competence in building the best ICE motors and cars on that basis. But the changeover to EVs with its new focus on batteries and electrical motors vs 100+ years of optimizing ICE motors is a rare chance to compete on a much more level playing field (and China still has a relative advantage on labor costs).

[@pionieresvizzero2224]

This is what happens when you declare war against a low carbon energy source like nuclear power, to pursue the dystopia of 100% renewables.

[@bartroberts1514]

If only Germany moved forward with German geothermal electricity more aggressively, the way China moved forward with solar. In 2023, China installed as more solar than the USA has done in its entire history. Germany is well-suited to advanced deep geothermal electricity generation (and unrelated ground source thermal heating, too). There is no reason for Germany to rely on external energy of any sort other than the economic efficiency of trading on demand geothermal electricity for intermittent but slightly cheaper wind and solar.

[@eirikbjorlo]

Reputation for quality in cars vaporised with dieselgate around 2018 - been driving VW until 2019 when switched to Tesla

[@Exodius3]

The german E- car industry is heavily evolving, some former non E-car brands even want to completely swap to the electronic version in the near future, while leading the autonomic driving level with mercedes benz and BMW

[@dnocturn84]

Chinas strategy was propably always build on the idea, to reduce imports from nations such as Germany in the future. They brought all of this stuff for decades, made companies invest in China and share their knowledge with Chinese competitors and then wanted to make all of this stuff themselves in the future, by copying it. It was just a matter of time, when China would start to ramp this up. Now it happened. It will be hard to turn this around, as it was propably not part of Chinas long-term plans.

[@Starflight_Miniatures]

It's a shame for Germany, I love my vw but with the prices going up significantly, I'll have to look to cheaper manufacturers if I want to keep electric.

[@TlotloMotingwe]

Ah shit. Here we go again...

[@oskars1419]

I think Germany needs to reduce bureaucracy and taxes. and then take out loans and subsidize the economy

[@johndewey6358]

Since Germany is no longer getting the inexpensive piped gas from russia and taking in mostly expensive liquified gas delivered by ships, this has a HUGE impact on comeptitivesness (pricewise) of German export products. Gas or other fuels have an amplified effect on economy of any country as they are drivers of many other expenses. Additional pressures may come to German car industry since China is subsidizing its electric car productions and it is VERY busy buying and contracting the mined material needed for electric car batteries since China wants to sell expensive batteries to other countries and it wants to establish a near monopoly on mined material that are and will be used in all kinds of car batteries. So, even if VW switches to production of more electric cars, VW will have to buy the batteries or materials required to manufacture batteris from China. Time for WTC t step in and contain Chinese subsidies and monopoly actions.

[@AgentMoler]

I was a bit baffled by his comment that Germany’s energy prices are low. If they are deindustralializing, a major contributor to that would be the higher energy prices from importing LNG.

[@wolpumba4099]

*Here's an "Explain Like I'm Five" version of the abstract*, focusing on why Germany's strong economy is having problems: *Germany's Trouble* * *Germany is like the best toymaker in the neighborhood.* They sell lots of cool stuff all over the world. * *But things are getting harder.* Some countries are making their own toys now, so they don't buy as much from Germany. * *Also, Germany's toy factories need special power to run.* They used to get this power from a neighbor, but that neighbor isn't sharing anymore. * *Now, Germany's toymakers are worried.* They don't know if they can keep making as many toys, and that makes people sad. *Can They Get Better?* * *Maybe!* If the special power gets cheaper, Germany's factories might work better again. * *The toymakers might need to find new friends to play with.* That way, they can sell toys even if some old friends don't want to buy them. * *The big bosses in Germany are trying to help.* They want to build new kinds of toy factories that are extra awesome. *Important!* The world is a big place, and sometimes things get messy. Germany is facing some tough challenges, but they're working on figuring it out. *Abstract* This video examines the recent decline of Germany's industrial economy and explores potential remedies. Once a manufacturing powerhouse, Germany faces setbacks due to factors including: * *Protectionism:* Increased protectionism in both the US (e.g., the Inflation Reduction Act) and China (e.g., Made in China policy) has hindered German exports and investment. * *Declining Chinese Demand:* China's economic slowdown has reduced demand for German goods, impacting Germany's export-driven economy. * *Energy Crisis:* Germany's reliance on Russian gas, now disrupted, has harmed its industrial competitiveness and investment climate. *Can Germany Recover?* Germany's economic recovery hinges on: * *Stable Energy Prices:* Current low European energy prices, if sustained, could bolster German industry competitiveness. * *US-China Relations:* A de-escalation of the trade war between the US and China would benefit German exports. *Government Action* Germany's government could drive recovery through: * *Targeted Industrial Support:* Investments like those securing Intel and TSMC plants in Germany help develop strategic industries. * *Clear China Policy:* Germany must balance the risks of decoupling from China with the benefits of maintaining market access, a complex dilemma. *Let's be clear:* the global economic landscape is uncertain. This video highlights Germany's struggles as a case study in how international trade frictions and energy dependence can undermine even the most robust industrial economies. i used gemini

[@haxxersan]

It’s all about energy. They lose the energy advantage so they have to look for more added value sectors. There’s too many to compete with.

[@Thiago-im4ly]

Germany usually goes through these phases but we all know, as always, Germany comes through these phases stronger!

[@Doso777]

Brits trying to explain how another country can fix it's economy. Oh the irony.

[@mpeGii]

ever thought about germany having 15% instant of 5% ill days actually because everyone is like "hey, lets say im ill" :D

[@hipnoe6279]

Just get a guy with a funny mustache to do it. That worked last time

[@blueciffer1653]

It did not work the last time

[@0ld_Scratch]

Es ist alles so ermüdend.

[@Bruhclan69]

2:59 this image...

[@CarlosKTCosta]

Current economic model is completely unsustainable, to put it simply, the best way to have a strong economy is having a strong internal market and not be dependent on imports and exports but, the way the market is set up you need an impoverished working class to be able to be competitive and poor workers do not spend the necessary money to sustain an internal market.

[@danmoreman954]

Germany does not have the workforce to maintain its industrial output levels. And the EU markets are shrinking as other EU nations are aging out as well. The loss of cheap Russian gas is accelerating the inevitable decline. Denying demographic trends is childish and unconvincing.

[@posthocprior]

Not mentioned: Germany closed all of its nuclear power stations (in the past five years).

[@cappaco1342]

China's domestic EV industry has "exploded" alright 4:35

[@DomesticMouse]

I suspect you forgot demographics. Germany is going to run out of workers.

[@bwhog]

"China's domestic EV market has EXPLODED!" HAH! How right you are. Cars and electric cycles have been reportedly spontaneously doing just that.

[@DBGE001]

For generations, Germany has been a manufacturing powerhouse. Now that picture is changing rapidly, as German industry increasingly struggles to compete on the world stage. Particularly hard hit are its mighty chemical and heavy industry sectors, which are now in rapid decline. One of the main drivers is policies that have made energy costs skyrocket. Germany’s BASF while maintaining its headquarters and a sprawling multi-unit production facility in Ludwigshafen, Germany, which houses 200 separate plants and about 39,000 employees. But that site is where serious problems have arisen in the past two years. The company has permanently closed two ammonia units there and has idled other several other units as well because they’re no longer competitive due to the trippled energy cost, moves that cost 2,600 jobs. BASF’s sales were down 21.1% in 2023, and adjusted earnings fell 60.1%. In the last week, BASF announced a further $1.1 billion in cost savings efforts at Ludiwigshafen. BASF announced a final investment decision on a $780 million project to double production capacity at its chemical manufacturing complex in Ascension Parish, Louisiana. The move marks the launch of a fourth investment wave in the US due to exceedingly high gas prices in the home country. BASF has not been alone in cutting costs and jobs. German seamless pipe producer Vallourec closed its plants in Düsseldorf and Mülheim in late 2023. U.S.-based Trinseo closed a styrene facility in Böhlen and a polycarbonate line in Stade, causing fellow American firm Olin to shut down related methylene chloride and chloroform production in Stade as well, all due to high energy costs. Germany’s Allnex closed its industrial coatings plant in Hamburg last year. Many factors contribute to the skyrocketing costs in Germany for electricity and natural gas: Russia’s invasion of Ukraine and the resultant sanctions, as well as the destruction of Nord Stream pipelines, for example. As a result, the country has been forced to import natural gas at substantially higher prices from the US and other suppliers. The damage has been done. Germany now has some of the highest prices for gas in the world. The German economic miracle was based upon a number of drivers, but the biggest by far was the cheapest energy in the world - Russian Gas. Germany was paying US$ 4/BTU for piped gas when Japan was paying US$ 18/BTU for Australian LNG. All of the German successes were energy dependent. That major advantage has now gone.

[@Saui1299]

That is simply bullshit, the German Growth after World War Two wasn’t because of Russian gas. In that time, there weren’t even pipelines to get that gas to Germany. Stop spreading misinformation

[@intersezioni]

we are still waiting for the "correct" and sincere video on the Italian economy that you promised to make 🙄😒

[@H3inrichXVI]

While the gas prices remain high in germany, the industrial electricity prices are now lower than before the war. So there is more than energy

[@MaxMustermann-vu8ir]

As a German, I would add two more reasons for the current crisis: 1. The pathetic german government. It's a coalition of 3 parties that basically hate each other, making it the weakest and least stable government post-WW2. Putin started his war just a few months after the german government was formed. A coincidence? 2. The majority of the population is stuck in a comfort zone. Germany was highly successful for decades and everybody got used to it. Problem #1 could be solved by the end of next year. As for problem #2, I'm not so sure.

[@adamcheklat7387]

Kaiser Wilhelm II would flip his lid.

[@alexanderchenf1]

Time to take more living space

[@Robert-xy4xi]

So that's more heavy industry going overseas out of Europe!

[@SAYYAM55]

The ringing of calls at the end of videos is really annoying. I get the message but the sound is very unpleasant none the less

[@gm2723]

@4:40 both figuratively and literally

[@anthonnybrownnn9760]

The cheap oil from Russia. Did helps the economy to float on top as well.losing it, that's a big blow to the economy. but say will get back on top.

[@toyotaprius79]

Was already a lose lose in terms of emissions

[@hendrx]

@@toyotaprius79 and now they are running the economy on coal, cause they shut down nuclear as well

[@johntowers1213]

how?

[@julianfitz806]

In your main Concurns you forgot insecurety in the industry about marketdesitions by the government and about the poitical situation voerall

[@JollyOldCanuck]

One of the key factors that allows a country's industrial base to succeed is cheap electricity, Germany needs to subsidize electricity for industrial ventures for the next decade while investing heavily in nuclear power plants over the next decade to reduce the market price of electricity to a reasonable rate.

[@KupoxChan]

That's just wrong. Nuclear power plants are not cheap. To build them up takes 10-20 years (see France or UK) and a single nuclear power plant costs like 50 Bn €. It's freakin expensive. Nuclear power plants can only be competitive if they are subsidized. ps: And the nuclear fuel rods that you need come from Russia.

[@JollyOldCanuck]

@@KupoxChanThe nuclear fuel rods that you need come from Canada and Australia. Nuclear reactors are very affordable to operate, the upfront costs are high but the operational costs are very low.

[@KupoxChan]

@@JollyOldCanuck Maintaining nuclear reactors is expensive too. France's EDF has 65 Bn € depts and the prices for nuclear power will rise in the coming years. Plus if Germany would now start building nuclear power plants, they would be done in ~2040. So this is no fix for todays energy prices. Also 2040 is the date when they will archive 80% renewable energy. So it makes no sense to go back to nuclear power. The CEO of RWE (Germanys biggest energy supply group) and many other experts says this too.

[@dnocturn84]

First of all, Germany needs to change its internal energy market. In order to boost renewable energy sources, the German energy market is regulated upside down, unlike any other European nation. You pay the cost for electricity based on the most expensive supplier currently on the market (which usually are fossil power plants, that are just kicking in as a reserve), even though your consumed energy was produced by something much cheaper. The difference in costs is a huge profit for the suppliers with very cheap energy production. Suppliers with expensive fossil fuel power plants will not get similar profits out of this. So this makes suppliers invest heavily in cheap renewable power plants, so they can get these profits. But this system makes all consumers pay insane prices to create these profits in the first place. This should be stopped and comnsumers should pay providers the real energy costs, that were actually required to create it. This would significantly reduce costs for electricity in Germany. The German government isn't doing this, because the current system is part of their strategy to promote renewable power plants AND especially privately owned, home installed solar power plants. But they could easily find other ways to do it instead, such as tax benefits or so.

[@JollyOldCanuck]

@@KupoxChan Renewable energy can coexist with nuclear energy, the amount of electricity generated by renewable energy sources tend to fluctuate depending on how cloudy or windy it is on a particular day. These gaps in power generation will remain a problem unless mass energy storage technology becomes financially viable by 2040, if battery technology doesn’t improve by 2040 Germany will be forced to rely on natural gas or nuclear energy to fill the gaps in its power supply. Germany does not have the luxury of being able to rely on hydroelectricity to generate the vast majority of its energy needs like Canada, nuclear energy is the cleanest and most reliable energy source available in the absence of Hydro or Geothermal power plants.