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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

#61

Post by bilekas »

dgellow wrote: post #55
geff82 wrote: post #43

Earlier quoted context omitted.

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.

I have to follow this sentiment, the food in Aldi & Lidl is perfect, actually in my country their fresh produce is always more fresh than larger chains.. Always.

So the cost does not reflect the standard.

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

#62

Post by stefano »

ed_balls wrote: post #52

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 a…

That point also ignores the fact that spanish workers are indeed cheaper than german workers. You can't focus on the unit of measure (the currency) while ignoring the accompanying number...

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

#63

Post by bilekas »

idclip wrote: post #58

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 cri…

Imagine a government who could be financially prudent..

Sorry but this is not why 'Politics is becoming extreme'.

The same way that not every citizen pays much attention to national debt until their on the hook for the bailout. Less drama is better. Strong and steady economy and forward planning.

I would take that over : "Hey lets just spend money we don't have, we'll tax is later or inflation or screw it, worst case, another bailout."

The proof is in the last financial crisis. Germany was able to buy up because they didn't spend like drunken sailors in a brothel during the, (identified by them and france) financial bubble.

Funny that.

I suspect the reason Politics is leaning more Fascist recently, is due to a bit of anger posts like yours that reflect nothing in reality.

Funny that too.

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

#64

Post by nothis »

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…

Economics in a nutshell: "There must be a single number that explains all of this!" It can't possibly be that Germany actually built its exports based on quality. That can't be replicated by tweaking some tax laws.

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

#65

Post by stefano »

blablabla123 wrote: post #6
billfruit wrote: post #2

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

Maybe there's a simpler explanation, in Germany businesses are run quite conservatively in comparison. Nice for stability but probably bad for innovation. By the way, Germany is one of the top 5 exporting countries since decades, so this has little to do with the Euro: https://wits.worldbank.org/CountryProfile/en/Country/WLD/Yea... https://wits.worldbank.org/CountryProfile/en/Country/WLD/Yea...

Can't be so bad for innovation if they're ranking first in this classification: https://www.bloomberg.com/news/articles/2020-01-18/germany-b...

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

#66

Post by arethuza »

nothis wrote: post #64
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…

Economics in a nutshell: "There must be a single number that explains all of this!" It can't possibly be that Germany actually built its exports based on quality. That can't be replicated by tweaking some tax laws.

A few years back I worked for a large engineering services company (that nobody has ever heard of) and one of the senior managers from Germany described the quality of Mercedes-Benz cars as a "national disgrace" - he was genuinely upset about it.

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

#67

Post by jhoechtl »

ubercore wrote: post #50
geff82 wrote: post #43

Earlier quoted context omitted.

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...).

I've only visited briefly, but Aldi in Germany was higher quality than any Aldi I've been to in the US.

To increase confusion in Germany you have to largely differ between Alid North (cold, sterile atmosphere) and Aldi South (a tad more of buying experience).

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

#68

Post by ergothus »

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…

> Not a word about the fact that Germany simply produces desirable products?

I dont think that's relevant though. Desirable products mean more countries buy your product, means the value of your currency changes, means your products are effectively "more expensive". Sharing a currency with other countries dilutes that effect, just like any prosperous region within a country sharing a currency with poorer regions.

I'm not an economist so I cant say how valid any of the points ARE, but from the logic presented I didnt think this was an attack on the quality of German products.

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

#69

Post by dr_dshiv »

ubercore wrote: post #50
geff82 wrote: post #43

Earlier quoted context omitted.

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...).

I've only visited briefly, but Aldi in Germany was higher quality than any Aldi I've been to in the US.

The Aldi in Amsterdam is a damn depressing store. Low ceilings, flickering lights, no organization or ambiance, and angry looking workers.

Miles from the Trader Joe's in California

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