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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

#261

Post by NeedMoreTea »

cosmodisk wrote: post #195
lispm wrote: post #152

What is often overlooked is this: Germany was export-oriented before the Euro, during the transition and with the Euro. Germany was export-oriented before reunification, during reunification and after reunification. The industry will adopt to those external factors: Germany was 'Exportweltmeister' with the super strong DM (which dominated European currencies) and it is a leading export nation with the Euro. There are…

Was half way through your post when I was about to write my comment about hidden champions,glad you mentioned it. This is something that tends to be overlooked quite often. Very very few countries have a model like this.Take the UK, as an example.An average town or even small city rarely has anything that isn't just for local market. For a lot of companies it's kind of fine,as the market is big enough to earn comfy l…

There used to be tens of thousands. In 1979 there was a policy decision to end UK manufacturing and focus on the City and services. No end of highly successful UK export businesses disappeared. Many of them quietly a world leader. Many of them famous names that had existed for a century or two.

Sheffield was the steel city with all the production, infrastructure and suppliers to feed all the cutlers, precision instrument makers, tool makers, scissor makers and all the other specialisms surrounding tool steel and stainless steel. The Potteries, well you can probably guess that one. So it went on around the regions of each city and across the country.

I go beyond it being a shame, it's criminal, or bloody well should be. We have had no chance of balanced export books since 1980.

If you search around the web, there's a lot of archive sites showing what was lost -- though in truth it was far more an intentional destruction.

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

#262

Post by kevin_thibedeau »

hcnews wrote: post #161
magduf wrote: post #154

Earlier quoted context omitted.

Why is this downmodded? It's true, at least in America: the people who buy these cars new don't care if they still work 10 years later, because they don't keep them that long. The people who buy cars intending to keep them a long time don't buy expensive luxury cars here.

Couple of reasons I can think of: 1. Most people want cars to run 10+ years, even in America (I live in California). Capital, environmental implications, not many new features etc. are valid reasons. 2. Higher quality cars are better to ride in 5 years than lesser quality cars. I would rather drive first 5 years of a car than the only 5 years of a car.

None of that applies to Merc buyers. These cars use an unusually high amount of plastic parts in critical areas that reliable vehicles don't ever attempt. Modern Mercedes is not the same as it was 30 years ago. Quality has been sacrificed on the altar of profit.

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

#263

Post by leipert »

chrisco255 wrote: post #256
nostromo wrote: post #199

Earlier quoted context omitted.

I'm reminded of Trader Joe's -- a chain most people think of as a California-based chain of health food stores -- but has actually been owned by a media-shy German family for 40+ years.

Maybe Aldi is a better example? Edit: Didn't know this, but Aldi bought Trader Joe's and currently owns it.

ALDI Nord owns Trader Joe’s.

There are two independent conglomerates called ALDI. Aldi Nord and Aldi Süd (North and South). (History: Two Brothers who fought)

They devide Germany and the rest of the world between each other. Have a look at the world map: https://commons.m.wikimedia.org/wiki/File:Aldi_world_map.png...

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

#264

Post by crispyporkbites »

cyberpunk wrote: post #260

As someone who lives and works in Germany I'm always surprised when I hear of the strength of the country. I've worked for several very large corporations here, financial and automotive, and how anything is achieved at all remains a complete mystery to me. It seems to me that all the success reported is directly in spite of their attitude towards technology and IT in general instead of because of it. The culture here…

What you’re seeing are signs of a successful industry.

They have money to burn on irrelevant things. At the end of the day the IT system will typically not help your margin on a supply chain beyond a tiny amount.

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

#265

Post by novok »

biztos wrote: post #243
owenversteeg wrote: post #78

Earlier quoted context omitted.

The Aldi is "third world"? What on earth? I personally shop in Lidl, not Aldi, but Lidl is often compared to Aldi, about as popular and occupies the same price segment. And I eat like a king from there! Excellent protected origin cheeses, meats, wines, organic products... Half the time I leave the Lidl I go with a shopping cart that would make an American foodie drool. My most recent purchase there included Manchego…

I'm American and I find Lidl to be absolutely ghetto; Aldi only marginally less so; but neither of them as scary as Netto! A lot of my friends shop at these places, because they're really cheap, and if you don't actually care who gets your money (or you can't afford to care) it's sorta like why not? In their favor I will say that there is less choice of products than in, say, a Spar or Rewe (mid-market grocery chains…

Most americans are shopping at a grocery outlet, walmart, foodmaxx or a 7-11 equivalent buying hotdog meat and white bread, which is way worse than any Lidl. The furnishing might not be as fancy at Lidl compared to safeway, but what they sell is fairly decent quality.

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

#266

Post by cryptica »

This is a very interesting article.

I particularly liked the insight that currency stability may be desirable for the most successful economies but undesirable for the least successful.

Being in the cryptocurrency space, I can see how this also plays out on a much smaller scale as well. When your community is made up of nobodies, one of the few advantages that you have is that your cryptocurrency has more upside potential than established players. This can offset the significant downside of not having a reputation.

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

#267

Post by ahartmetz »

cyberpunk wrote: post #260

As someone who lives and works in Germany I'm always surprised when I hear of the strength of the country. I've worked for several very large corporations here, financial and automotive, and how anything is achieved at all remains a complete mystery to me. It seems to me that all the success reported is directly in spite of their attitude towards technology and IT in general instead of because of it. The culture here…

If you only work for very large corporations, you work for some of the most inefficient corporations. You get a higher salary for the resulting frustration. That's the deal.

If you want to work in an environment that works according to common sense and achieve something, take a pay cut and join a smaller company. Of course, you still have to do your research and choose wisely.

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

#268

Post by yorwba »

noobdood wrote: post #203
ChuckNorris89 wrote: post #127

Earlier quoted context omitted.

Indeed, I myself worked for one such niche high tech machinery German company. The problem is, due to the thin margins in these hardware gigs, the salaries are piss poor compared to the skills needed (M.Sc. and up) as even making iOS Apps paid better. Only the execs and the couple of grey beards who were with the company since its inception were well paid, everyone else not so much. That's the reason youngsters aren'…

The same stuff? What about quality? Newb here.

China probably has more people at every level of education than Germany, they're just more sparsely distributed. So the one person with really in-depth manufacturing knowledge spends their time supervising a bunch of greenhorns who barely know how to operate the machines, making lots of cheap crap. But they're learning something new every day and may eventually become skilled enough to cost-effectively manufacture high-quality goods instead. Of course at that point they won't be happy with rock-bottom wages anymore, so it's not clear that prices will drop much.

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

#269

Post by oblio »

durnygbur wrote: post #169
paganel wrote: post #144

Earlier quoted context omitted.

> The only reason I can think of any expat thinking about Germany as the Promised Land is self-delusion. It happens a lot in Romania and I suspect in other Eastern-European countries too.

I noticed this sentiment among Romanians and I hypothesize that it's related to the fact their aristocracy (ie. rich and affluent) used to be predominantly German speaking and of German origin. In many other post-Communist countries Germany is perceived much more critically.

Only in Transylvania plus strictly the royal family outside of Transylvania. I'd say it's the German rigor we don't have.

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

#270

Post by ahartmetz »

dr_dshiv wrote: post #69
ubercore wrote: post #50

Earlier quoted context omitted.

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

Aldi is not a "shopping experience", it's a place to get decent stuff cheap. It always amuses me when that somehow offends people's high end consumer (or whatever) sensibilities.
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