Muddling through with no reforms for 16 years has taken a toll on Germany—and Europe. Now, the country is once again the economic sick man of the continent https://lnkd.in/e4zT8WFr Illustration: Peter Schrank
Daniel Dutta
1mo
Merkel was certainly the second worst thing that happened in German history. The ‚Wir schaffen das‘ led to migration into the social systems and the left politics of Merkel led to an attitude where Bürgergeld , burnout mentality and asking the state for solutions have become a dominant state of mind. Germany has lost the winning mindset of the ‚Exportweltmeister‘. Unfortunately Merkel paid the power with with ever increasing social costs to satisfy the SPD coalition. Instead of investing the profits of the good economic years into the future, Germany spend the money for the social system. Since people got used to more benefits with less work, it’s difficult to change the mindset. With less people paying into the social systems and more people who want the free lunch Germany is on it‘s way to a devastating future. In combination with an aging population the problems are almost impossible to solve in a peaceful democratic manner. Whether the trouble will come from far left or far right, it will not have a good outcome.
Vítor Paranhos
1mo
While much of our Western world is focused on social debates and various ideologies, other nations have been prioritizing economic growth, military strength, and cultural unity. It’s crucial to recognize that global tensions are rising, and the world may be nearing a significant conflict. Let’s hope we can refocus on what truly matters and work together toward a stable and prosperous future.
Additionally, Germany has lost its moral compass as its Foreign Minister, Green Party, recently said Israel can kill civilians in Gaza to “defend itself” with no exclusion mentioned. The statement was made in a speech at the Bundestag after 370 days of atrocities in Gaza and the killing of excess of 41,000 Palestinians.
Steven Bailey
1mo
Germany is in trouble- Merkel bet the farm on Russian gas believing she had the measure of Putin. A very conservative woman in a conservative country faced with a rapidly changing geopolitical and technological landscape she wasn’t able to lead the change from analogue heavy industry to digital and high growth technology businesses. They risk becoming the “new” Britain. Like GBs post industrial failure, nostalgic conservativism and dependence on past glories will hold back the investment in new industries required. Without GBs North Sea oil, or its vibrant parasitic financial services sector, to cushion the transition Germanys decline could be steeper! A scary thought for any student of history!
Stefano Tuveri
1mo
The economist is a master in "the benefit of hindsight" analysis ...
Techlusion
1mo
The current economic challenges facing Germany highlight the critical need for innovative reforms and a proactive approach to leadership. As Europe navigates this complex landscape, collaboration and forward-thinking strategies will be essential for revitalizing not just the German economy, but the entire region. It's time for bold action to reshape our future! #EconomicReform #LeadershipInChange
J Tondon
1mo
Strange but true: globalization promotes the free movement of goods and services, yet not of people. Nations defined by race, culture, color, food, and faith quickly intervene to restrict the free movement of people along with goods and services. Indeed, both race and faith represent a nation. Economies across the globe could be significantly improved, more equitable, and we would see fewer conflicts and NO large-scale wars. However, nationalism often overlooks these benefits, ultimately sacrificing them. If the free movement of people were included in globalization, it would be much more challenging to incite conflicts based on imagined threats and the unrealistic hopes propagated by politicians and their oligarch masters.
Ret.
1moNo one would ever have thought in his lifetime that Germany would fall from its pedestal as the world's leading carmaker. Then, the Chinese EV carmakers barged in with a bang, out of nowhere, catching the Germans with their pants down. In a nutshell, Germany's windfall from its car exports blindsided it from realizing it had a very very serious production cost problem at home. It thought it found a solution by buying Russian oil and gas on the cheap. But it got squeezed very badly when 2 seismic events wiped away the competitive advantage it had: - for one, the war in Ukraine forced it to buy oil and gas from Norway and the US at a price so steep it could ill afford. Its complete dismantling of its nuclear plants at a cost of half a trillion euros dug the Germans deeper into the hole. - then, its main export market for its cars, China, switched over to domestic players, whose EVs and ICE vehicles were almost as good but cleverly differentiated and above all cheaper than their own cars.