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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

#271

Post by jimbokun »

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…

How do German grocery stores compare to Italy?

I haven't been to Germany (outside Frankfurt airport), but on my Italian vacation last year, just going to a convenience store and picking up some bread, cheese, and fruit was cheap but WholeFoods-like quality or better. Same with their supermarkets, with regional products featured with government regulations controlling what can be labelled that way:

https://www.thechefandthedish.com/single-post/2016/10/25/Wha...

Anything equivalent in Germany?

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

#272

Post by asjw »

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...).

Said the country where fresh vegetables are more expensive than junk food and cooking real food is for TV shows...

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

#273

Post by lifty »

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…

Very good point! In this video [1], economist Richard Werner rants about the existing central banking influenced economies, but at around the 47th minute he mentions the roughly 1500 "champions" (USA has 300), and he argues that this is the case because of the small local community banks that are present all over the country.

[1] https://www.youtube.com/watch?v=8FT-zyTX2nE

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

#274

Post by pvaldes »

moooo99 wrote: post #193
kensai wrote: post #167

Earlier quoted context omitted.

No pun intended, dude, but I think you speak mambo jumbo... :D "German products arent as high quality ad they used to be and most if them are pretty stale in terms of innovation." Germany just surpassed again South Korea as the most innovative country. News are just three days old. Where do you base your own assessment? Did your BMW break down? https://www.bloomberg.com/news/articles/2020-01-18/germany-b...

Disclaimer: I'm from Germany and work in the automotive industry I think he is partially right, at least when you define innovation as being mainly of digital nature. There have been lots of improvements on the mechanical side, cars have become a lot more efficient, and quieter (or louder if you prefer). But when it comes to making the cars smarter or even electric, there hasn't been a whole lot of innovation. Since…

I think that this was not exclusive from germany. It was a global change of paradigm

Every single big car brand experienced a period of very confused years (bordering panic for some of them) between 2000 and 2005 IMHO when faced the truth that the old trustable mechanics must either be replaced by mechatronica in a rush, or be overcomed and left behind by the new competitors.

Some so-so models were hurriedly launched in those years as result. Some of those soon started suffering lots of random errors and must be recalled and eventually replaced.

Cars now are computers with tires, all coated in plastic. Metal is ethernal, electronics not so much. Do not expect this soft and delicate matherials to last much more than your computer.

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

#275

Post by Tainnor »

glofish wrote: post #232
Tainnor wrote: post #220

Earlier quoted context omitted.

I personally don't like discounters (including Aldi), but a lot of people that are not in financial trouble go shopping there. Sometimes even well-off people. Germans can be very frugal, and this is especially true when it comes to food (although there are signs that this is starting to change).

It is fine to be frugal or go discount shopping - it is the quality of food at the American Aldi that felt me to like a really bad deal. The chicken thighs say cost fifty cents (not sure of the price but utterly cheap), but once you cook it was almost inedible, a mixture of fat and big thick bones - felt like not even fit for human consumption. Again European Aldi's are not like that.

As a vegetarian, I can't really comment much on meat quality, but there were a number of scandals in Germany w.r.t. to meat (google "Pferdefleischskandal" if you know German). Again, though, this doesn't reflect on the wealth of Germans as much as on the relative importance of good food (especially compared to e.g. French or Italian people). I don't know if it's a result of my generation's parents or grandparents growing up in the aftermath of WW2, but "cheap food = good food" is an equation that many Germans would agree to (and which I personally find quite strange). I see a lot of people that always buy the cheapest food, but then they have an iPhone, a fancy car, a house, etc.

This is not to say that there isn't poverty in Germany. There definitely are a lot of people who are just getting by, especially after the Hartz reforms, although the social security net in Germany is still quite good. But it's not like nobody is well off.

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

#276

Post by cyberpunk »

crispyporkbites wrote: post #264
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.

The finance gig I had the IT systems were core business. At one point there I was in a meeting where I was the sole engineer and there were 14 project managers involved in my project. We all had a nice laugh about it but, again, this to me is a sign of a sort of sickness, not a sign of success.

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

#277

Post by dboreham »

leipert wrote: post #263
chrisco255 wrote: post #256

Earlier quoted context omitted.

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...

See also Samuel Smith and John Smith.

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

#278

Post by [deleted] »

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.

[deleted]

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

#279

Post by elfexec »

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…

> 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.

Germany was export-oriented even before WW2. It's funny whenever you read about "How germany or japan became industrial powers after ww2". With many crediting the US or whatever aligns with their agenda. The truth is that both germany and japan were industrial powers before ww2 and they just reverted back to what they were after ww2.

> For example Germany is not a centralized economy (like the UK or France, which are grouped around London and Paris).

Germany is most definitely a centralized economy. Just because it doesn't have the dominant city center like London and Paris doesn't mean it isn't centralized. The reason why germany is a manufacturing power is because german federal government and the state decided to make germany export-oriented manufacturing power. While in the UK, they decided to become finance oriented and service oriented and shifted their manufacturing overseas. Which is smarter in the long run, only time will tell.

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

#280

Post by kaybe »

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…

That's why you have several stores close to each other which can all stay in business. You start at Aldi and get the basics, go to Rewe for fancier things, stop by dm or Rossmann for the most fantastic selection of toiletries and hit the bakery on the way back. Or if you live in the city it's easy to take turns every few days instead of doing it all at once.

addendum: I really like the efficiency of Aldi/Lidl with respect to filling shelves. Why does someone have to touch all the pasta packages and arrange them when it's almost the same work for the customers to grab them right out of the box?

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