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Germany sees company bankruptcies soar

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Re: Germany sees company bankruptcies soar

#81
post #59
post #40

Earlier quoted context omitted.

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.

Given the constant noise we hear about policy paralysis and everything taking years to move, reforms seem really really hard.

Re: Germany sees company bankruptcies soar

#82
post #59

Earlier quoted context omitted.

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.

Given the constant noise we hear about policy paralysis and everything taking years to move, reforms seem really really hard.

I guess people don't have a clue about Germany's problems and their reasons. ( And many Germans just don't agree to that, too)

For example there have been short and medium term actions to lower down the electricity prices.

There have been some attempts to slow down the bureaucracy.

There have been a strong push for digitalisation (Especially the health system is on nice track, currently). Also it is esspeucz annoying by American HNs to read critics as digital government in US is bad. Estonia is the role model, here.

At all, this is the federal or national level. Other level do try to improve the situation! Darmstadt's push on pharmacy is very impressive, Schlesig Holstein becomes centre for green Energy and also EU is very important here.

Re: Germany sees company bankruptcies soar

#83
post #66

Earlier quoted context omitted.

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…

> 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. "Far" lower wages? Progressive income tax is constant at 42% for essentially the whole salary range that is relevant for an engineer (66-278k). As a concrete example, total tax burden at: - 70k is ~40% (42k net) - 100k with ~44% (56k net) - 200k with ~4…

This is not the whole truth. You'll get actively punished the higher your salary is. At the 100k Euro mark you will lose all government subsidies and the worst part is that the government will stop paying for elderly care for your parents. Instead, you will be forced to. Independent of your relationships with them. 100k sounds like a lot but you'll be left with 55-60k Euro after taxis, with elderly care being above 3000 euro a month for one parent only.
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