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Germany sees company bankruptcies soar

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Re: Germany sees company bankruptcies soar

#51

As a German who lived abroad a long time, but moved to Berlin eight years ago, here’s my (completely personal) assessment of why Germany is going down the drain economically - and will continue to do so: 1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their…

I want to add to point 3) German's pay a lot of taxes. Living costs and rent are sky high in cities. In the past, I reduced my hours to 28 hours a week because the difference was negligible in taxes paid. I even got money from the government to pay rent because my wage was lower. There is a real problem where between salary band's, the money after taxes does not change significantly even if you're paid more. Working…

The problem really is the progressive tax system, which directly promotes low productivity, since working more usually means lower and lower wages.

I met many engineers who would be completely willing to work more hours, but it makes very little sense as you are working the additional hours for far lower wages.

The idea of banning lower work times is new to me, but seems in line with the German government approach to invent an anti-solution to the problem with severe potential downsides (e.g. for parents).

Re: Germany sees company bankruptcies soar

#52

The question is, are these companies the one that still work by fax and think the internet is a fad?

>The question is, are these companies the one that still work by fax and think the internet is a fad?

No, only the government thinks like that.

Re: Germany sees company bankruptcies soar

#53
post #39
post #6

The article focuses only on the near time statistics and is missing out the long term statistics as well as effects of the COVID19 pandemic. The effects of the COVID19 pandemic were that the bankruptcies law was temporarily changed, which had the effect that companies that were already on a way to bankruptcy could live longer. That is also the reason why in 2020 the numbers were at a low point for almost 20 years. Th…

There are some German articles that do talk about it in a bit more detail [0]. It's a mix of reasons 1) Covid grants that delayed bankruptcies, 2) Increase of VAT back to 19% for hospitality industries, 3) Increase in construction costs for construction companies, 4) inflation, 5) disruption in trade And this is not just traditional industries, even 1 in 10 startups risk bankruptcy. [1] [0] https://www.tagesschau.de/…

> And this is not just traditional industries, even 1 in 10 startups risk bankruptcy. [1]

That seems incredibly low though, even 10 years ago (and not specific to Germany) only 1 in 10 startups succeeded. [0]

[0] https://www.forbes.com/sites/neilpatel/2015/01/16/90-of-star...

Re: Germany sees company bankruptcies soar

#54
post #42

Earlier quoted context omitted.

> is there any reason why this post is voted down? Because it presumes the only reason people are voting "right-wing" is because they are reading "doomsday news". Versus, you know, disagreeing with the way the "left wing" have been running things. Not sure why the left are going with "You're not poor, look at these charts" as a political strategy, but unsurprisingly, people aren't buying it...the world over.

How is it possible that on Germany related news we talk about US again? Do you know anything about the current or former German governments?

>How is it possible that on Germany related news we talk about US again?

1. Where did I mention the US?

2. You don't get to tell other people what they can talk about on these forums.

Re: Germany sees company bankruptcies soar

#55
post #43
post #31

Earlier quoted context omitted.

> We estimate the ten-year cost of the legislation and executive actions President Trump signed into law was about $8.4 trillion, with interest. Yep, nothing to do with trump. https://www.crfb.org/blogs/how-much-did-president-trump-add-...

You’re providing a good example of how partisan bias makes you both snarky and stupid. For your own sake you may want to check that impulse. Otherwise, you are, despite your sarcasm, stating the truth. Nevertheless it might behoove you to learn more about how the US system operates. Like Biden after him and Obama before him, Trump had the choice to either sign the continuing resolutions that Congress sent him, or to…

The "lets get a huge tax break done" was absolutely his goal and plan and part of his election campaign, I didn't say anything partisan, simply stating that trump was absolutely part of the problem.

You wont find me defending any president :)

Re: Germany sees company bankruptcies soar

#56

As a German who lived abroad a long time, but moved to Berlin eight years ago, here’s my (completely personal) assessment of why Germany is going down the drain economically - and will continue to do so: 1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their…

I want to add to point 3) German's pay a lot of taxes. Living costs and rent are sky high in cities. In the past, I reduced my hours to 28 hours a week because the difference was negligible in taxes paid. I even got money from the government to pay rent because my wage was lower. There is a real problem where between salary band's, the money after taxes does not change significantly even if you're paid more. Working…

In the UK, the loss of subsidised childcare and tax free allowances creates an effective marginal tax rate of over 100% for a parent earning £100,000-£125,000.

Re: Germany sees company bankruptcies soar

#57

As a German who lived abroad a long time, but moved to Berlin eight years ago, here’s my (completely personal) assessment of why Germany is going down the drain economically - and will continue to do so: 1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their…

Most of these are legislative problems , in the sense that they intentionally exist. The legal climate of Germany makes startups nearly impossible, because the German government doesn't want risk takers to exist. I would also add that I have seen a determined anti-education attitude, especially against STEM education. In stark distinction STEM careers are usually considered "lower class" than civil service careers. T…

Just wanted to share the related Wikipedia article. Germans do - factually - work fewer hours annually than any other developed nation: https://en.wikipedia.org/wiki/List_of_countries_by_average_a...

Re: Germany sees company bankruptcies soar

#58

As a German who lived abroad a long time, but moved to Berlin eight years ago, here’s my (completely personal) assessment of why Germany is going down the drain economically - and will continue to do so: 1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their…

> Mindset and Culture

Every time I’m in Germany it astounds me how defeatist the German mindset is when it comes to taking risks, nobody wants to run a business or compete with the big guys because they just assume they will automatically lose.

Re: Germany sees company bankruptcies soar

#59
post #40

Earlier quoted context omitted.

A serious question: Is the situation better than other economies?

GDP wise Germany economy grew 0.3% in 2023. I think, it's one of the lowest in OECD if not the lowest.

This is not good, but the doom is over exaggerated. Especially compared to another countries (cough US) Germany has a functioning policy system. Reforms are very possible, population is not polarised.

Re: Germany sees company bankruptcies soar

#60
post #42

Earlier quoted context omitted.

How is it possible that on Germany related news we talk about US again? Do you know anything about the current or former German governments?

> How is it possible that on Germany related news we talk about US again? 1. Where did I mention the US? 2. You don't get to tell other people what they can talk about on these forums.

" Because it presumes the only reason people are voting "right-wing" is because they are reading "doomsday news". Versus, you know, disagreeing with the way the "left wing" have been running things. " This sounds very Us. also another OP clearly refers to us stuff.

You don't get to tell people what they can complain about.

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