How Germany is able to run the world’s second largest export economy • Hacker News Board

Re: How Germany is able to run the world’s second largest export economy

#31

Post by zwieback » Tue, Jan 21, 2020, 3:57 PM UTC

Not a word about the fact that Germany simply produces desirable products? Somehow that has to factor in. Financial policy and the education system favors a conservative manufacturing sector that incrementally improves upon what Germany has done for decades.

While I got my ME degree in Germany my dad, who is a solid state physicist, spent all his energy trying to accelerate the development of a German electronics sector. He was always ranting about the hurdles thrown up by politics in Germany, "We'll just continue building cars and machines for the next 100 years." Well, sounds like it's still working although the end of the cold war and the common market has distorted things in Germany's favor, an effect that probably won't last.

Re: How Germany is able to run the world’s second largest export economy

#32

Post by somurzakov » Tue, Jan 21, 2020, 3:58 PM UTC

so the point is that Germany takes over euro-denominated industrial export to itself and leaves other EU countries figure out themselves whatever they wanna do to survive.

Re: How Germany is able to run the world’s second largest export economy

#33

Post by jpfr » Tue, Jan 21, 2020, 4:01 PM UTC

The analysis is incomplete. It does not take services into account.

Yes, Germany has a positive trade balance in goods. But the trade balance in services is negative. This ... well ... balances the balances.

The UK has shifted its economy from production to services. Hence the negative trade balance for physical products excluding services.

Re: How Germany is able to run the world’s second largest export economy

#34

Post by durnygbur » Tue, Jan 21, 2020, 4:01 PM UTC

The most un-understandable thing is that none of this export wealth reaches an individual, especially a guest worker, a foreigner. It's quite shocking to discover by a foreigner specialist lured to the country by the multitude of positive economic news. Cost-cutting and exorbitant charges and contributions everywhere. The entire export wealth is captured by the oligarch families and the highest level executive caste.

Re: How Germany is able to run the world’s second largest export economy

#35

Post by varjag » Tue, Jan 21, 2020, 4:01 PM UTC

zwieback wrote: post #31

Not a word about the fact that Germany simply produces desirable products? Somehow that has to factor in. Financial policy and the education system favors a conservative manufacturing sector that incrementally improves upon what Germany has done for decades. While I got my ME degree in Germany my dad, who is a solid state physicist, spent all his energy trying to accelerate the development of a German electronics sec…

Perhaps a bigger distortion was everyone else deciding to become "value-add" over outsourced production. Only so much room for beancounters.

Re: How Germany is able to run the world’s second largest export economy

#36

Post by Kaiyou » Tue, Jan 21, 2020, 4:02 PM UTC

Schlaefer wrote: post #12

It was a fancy read until > an efficient & strong military Now I doubt everything.

Isn't it always like this. Things written tend to make sense until they contradict your prior knowledge.

Re: How Germany is able to run the world’s second largest export economy

#37

Post by jariel » Tue, Jan 21, 2020, 4:02 PM UTC

grogenaut wrote: post #30

pretendscholar wrote: post #16

Earlier quoted context omitted.

There are winners and losers to having a strong currency. It isn't inherently a bad thing to make the currency less valuable.

What are the winners going to be? What industries does Britain Excel at besides finance? I am asking sincerely.

Medical research and equipment, drugs, industrial equipment, engines particularly aeroplane, defence, branded goods etc.

Departure won't ruin London as a financial capital, but it will shift the types of financing.

Brexit is far, far more than just an economic issue.

Re: How Germany is able to run the world’s second largest export economy

#38

Post by notahacker » Tue, Jan 21, 2020, 4:02 PM UTC

pretendscholar wrote: post #16

heisenbit wrote: post #10

Earlier quoted context omitted.

Maybe, if it is rational to loose ones status as Europe‘s financial hub which was one of the key drivers in the past for the high pound exchange value.

There are winners and losers to having a strong currency. It isn't inherently a bad thing to make the currency less valuable.

The winners are normally exporters, who have other reasons to be concerned...

Re: How Germany is able to run the world’s second largest export economy

#39

Post by patrickmcnamara » Tue, Jan 21, 2020, 4:05 PM UTC

mandevil wrote: post #11

billfruit wrote: post #2

Very informative. Does this imply that Brexit is the rational choice for the UK?

Britain already used its own currency, so they didn't have the same sort of 'Greece and Spain suffering to subsidize German exports' effect going on. So I don't think this particular issue will be different from before Brexit. ETA: It will matter if the City continues to dominate European financial transactions, because it is the tremendous amount of money that goes to the City which keeps the Pound priced above the…

Their goods would also be subject to EU tariffs depending on how trade talks go and the EU accounts for ~50% of UK trade iirc. So it's still very up in the air.

Re: How Germany is able to run the world’s second largest export economy

#40

Post by maelito » Tue, Jan 21, 2020, 4:05 PM UTC

baud147258 wrote: post #27

esotericn wrote: post #25

Earlier quoted context omitted.

> this limit is raised for heavy cars Yeah, what's that all about? Surely the entire point is to incentivise people to _not_ buy heavy cars, since the lowest emission models (aside from electric cars) are smaller?

Except that the EU is an union of unequal countries, so if Germany (which is one of the most powerful, if not the most powerful country in EU) want to keep an industrial edge via a special case in law, they're going to get it.

It's also that Germany has a reputation for being the eco-friendly country, while in fact not really caring about its climate impact from some very important domains : high-carbon electricity, heavy polluting industry.