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

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

#51

Post by arethuza »

geff82 wrote: post #43
durnygbur wrote: post #34

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.

Someone with a regular job can not afford a house close to a major city any more and for sure can not afford any desirable German car. People dress cheaply, buy used cars and many live in frugal appartments, buy in stores that many American or Canadians would consider third world (never ever go buy stuff in an Aldi when you are used to Canadian standards...).

We had an Aldi open fairly recently close to where we live in the UK and I'd say it is pretty good, maybe not the absolute best quality but our nearest Waitrose is much further away.

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

#52

Post by ed_balls »

Good article, but the model is too simple. UK used to produce more cars than Germany, but it's the opposite now. Why? They haven't shared the same currency. German cars were better.

> And it means those same workers in Spain are less equipped to compete for Manufacturing jobs — because Elon Musk has to pay them in German Euros instead of cheap Spanish Peseta. If you’ve got to pay everyone in German Euros, you might as well get the most productive workers for your “buck”, right?

If that was the reason then he should move his factory 50+ miles East. Why the factory is near the Berlin? Network effects. They have the logistic, supply chain and talent. Even electric car project, created by Polish government is designed and build in Germany.

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

#53

Post by ailideex »

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…

> the common market has distorted things in Germany's favor, an effect that probably won't last.

Quite by design. Having the whole Europe on Germany's monetary policy (i.e. Eurozone with EUR interest rates) while not sharing any other policy is heavily in Germany's favour and one of the main reasons the European debt crisis happened.

Not to say that being a well governed country with good policy and a culture that is conducive to high productivity and good quality did not help - it definitely did. And I'm not trying to redirect blame for the Eurozone crisis - Greece has mainly itself to blame.

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

#54

Post by yorwba »

ginko wrote: post #21
drocer88 wrote: post #19

Earlier quoted context omitted.

New York, big three? Florida passed New York in population in 2014: https://www.orlandosentinel.com/news/breaking-news/os-florid... . Census figures released Tuesday show Florida passed New York as the nation's third largest state with an estimated population of 19.9 million. New York, now fourth, has 19.7 million.

By economy: https://en.wikipedia.org/wiki/List_of_U.S._states_and_territ...

You can play the same game for Germany: https://en.wikipedia.org/wiki/List_of_German_states_by_GRP

And if you looked at each of the regions at the top, you'll likely also discover large differences between close-by areas. The geographical distribution of economic activity seems to follow a kind of fractal structure.

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

#55

Post by dgellow »

geff82 wrote: post #43
durnygbur wrote: post #34

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.

Someone with a regular job can not afford a house close to a major city any more and for sure can not afford any desirable German car. People dress cheaply, buy used cars and many live in frugal appartments, buy in stores that many American or Canadians would consider third world (never ever go buy stuff in an Aldi when you are used to Canadian standards...).

Aldi would be considered 3rd world? What do you mean by that? I regularly go to Lidl and Aldi, they are perfectly fine discount stores.

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

#57

Post by ChuckNorris89 »

jpfr wrote: post #33

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.

This! Germany's manufacturing supremacy can't last forever with lower cost countries catching up fast. UK realized earlier it can't be competitive in manufacturing anymore. Knowledge work is the future in the West, not volume manufacturing.

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

#58

Post by idclip »

Theres a reason the Politics is becoming extreme, the largest economy is simply neglecting its citizens and simply saving a lot.

Edit: not trying to troll. Many are thankful, but many are worried aswell. I/we dont consider it difficult to understand. Work hard, save, dont go to wars, its a simple equation, but its not all rosey, and things arent perfect. Many claim this prosperity to be illusory, and fear a harsh crises ahead.

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

#60

Post by ChuckNorris89 »

geff82 wrote: post #43
durnygbur wrote: post #34

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.

Someone with a regular job can not afford a house close to a major city any more and for sure can not afford any desirable German car. People dress cheaply, buy used cars and many live in frugal appartments, buy in stores that many American or Canadians would consider third world (never ever go buy stuff in an Aldi when you are used to Canadian standards...).

Indeed, expats are lured here thinking Germany is the Promised Land but realize too late that they can't afford to buy a family worthy home on your average white collar wage and due to how German corporate politics work, most of the non-natives are locked out of the lucrative careers even when speaking the language.

Like someone said, Germany is a rich country of poor people.

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