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I don't see how this answers the question in the title. How does the school of mathematics of the University of Goettingen help make German factory workers competitive with Chinese ones? Why aren't these companies moving their production to cheaper markets like companies elsewhere do?
You could make the argument that the Mittelstand has profited from Germany's controlling stake and dominance in the EU. One of the big arguments for non German businesses seeking to leave the EU have been perceptions of unfair EU bureaucratic advantage to German businesses at the expense of other member states. Having said that they have a very good national business model and an excellent culture around vocational t…
Yes. They are insulated by EU trade tariffs on goods external to the EU. Combine that with the most efficient factories in the EU. They get to provide things that can still beat China after considering the tariffs. In other words, trade barriers strengthened the middle class.
You could make the argument that the Mittelstand has profited from Germany's controlling stake and dominance in the EU. One of the big arguments for non German businesses seeking to leave the EU have been perceptions of unfair EU bureaucratic advantage to German businesses at the expense of other member states. Having said that they have a very good national business model and an excellent culture around vocational t…
Yes. They are insulated by EU trade tariffs on goods external to the EU. Combine that with the most efficient factories in the EU. They get to provide things that can still beat China after considering the tariffs. In other words, trade barriers strengthened the middle class.
Because German engineering is world-renowned. This much has been known for a good long while. You can take a German bearing of 'low quality' vs. a Chinese bearing of 'high quality' and easily tell that the German bearing is far superior. It only makes sense such engineering capability would result in a lot of manufacturing work in the middle-class range.
You can also get real high quality bearings made in China, but they will not be as cheap, and you will have to verify that you are getting what you asked for.
> The high taxes on assets in France and the inheritance tax in the U.S. prevent the accumulation of capital necessary for the formation of a strong mid-sized sector. I am surprised by this assertion. Allegedly family-managed firms can make long term decisions, but those observations are always subject to survivorship bias. At best I would think this issue marginal. (There's also a bias in the statement, as inheritan…
In the modern age, making decisions based on feelings rather than statistical evidence is abhorrent. $10 million dollars is peanuts for a successful business and if the majority of the wealth is tied up in a business what you are in effect doing is destroying a productive asset of the US economy for short term gain.
Rather than using your misguided moralisms to decide policy we should use evidence to decide on the policy that results in the best outcomes.
Because German engineering is world-renowned. This much has been known for a good long while. You can take a German bearing of 'low quality' vs. a Chinese bearing of 'high quality' and easily tell that the German bearing is far superior. It only makes sense such engineering capability would result in a lot of manufacturing work in the middle-class range.
And the reason that this is true is because Germany protect those jobs and values people that mastered their craft. Which are the valued blue collar jobs in US - doctor, chef, programmer and lawyer. That's it.
None of those are blue collar job, and chef isn't particularly valued in the US.
One day the VP from the American HQ came to the Indian office and yes he was German, during the intro meeting he talked about the low pressure from the tap. The tap was changed the next day.
I still remember that story because it taught me how Indians look at their surroundings and how a German looks at the same surroundings.
You could make the argument that the Mittelstand has profited from Germany's controlling stake and dominance in the EU. One of the big arguments for non German businesses seeking to leave the EU have been perceptions of unfair EU bureaucratic advantage to German businesses at the expense of other member states. Having said that they have a very good national business model and an excellent culture around vocational t…
Yes. They are insulated by EU trade tariffs on goods external to the EU. Combine that with the most efficient factories in the EU. They get to provide things that can still beat China after considering the tariffs. In other words, trade barriers strengthened the middle class.
The article asks why there are so many successful mid-size companies in Germany, and it lists reasons such as continuity of leadership, scientific competencies, system of apprenticeships and others. I don't see how this answers the question in the title. How does the school of mathematics of the University of Goettingen help make German factory workers competitive with Chinese ones? Why aren't these companies moving…
The search for precision and applied scientific discovery. [0] Enlightenment drives every aspect of German manufacturing. Factory workers are in an environment that makes things driven by these processes.
[0] An immediate example that comes to mind is the electric signal activation of the liquid suspension (magneto-rheological fluid) in the Audi R8. cf "The Audi R8: The Suspension" ~ https://www.audiworld.com/articles/the-audi-r8-the-suspensio...
This is an extreme example. It also highlights why Chinese/German manufacturing is different. One is aiming at mass market, low cost. The other high cost but desirable. The low cost German manufactured cars are measurably better than the Chinese.