The Four Reasons That Made Germany a Great European Power
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- Опубліковано 27 гру 2022
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German economy in a nutshell:
Germany makes the thing that goes inside the thing that goes inside the thing, and without that thing that goes inside the thing that goes inside the thing, everything would collapse, from toothpaste production to NASA's heat shield technology.
And they produce the thing that produces the thin that goes into the thing.
Example lasers working on nanometer level for the semicoductor industry
LOL, best comment ever;-)
Umm no that's Taiwan.
@@LancerloverLL no, Taiwan produces the thing. Germany produces the thing that Taiwan uses to produce the thing.
@@fabianL02 Doesn't Taiwan produce like 60% of the global semiconductor supply? It's literally the thing that goes into all other things.
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Trading with an expert is the best strategy for newbies and busy investors who have little or no time to monitor trade
There is one last point: Germany's SMEs are often world leaders in very niche fields and they often provide the production machines for other companies (so they can't be simply replaced by other companies). Plus, most of these SMEs are private companies or GmbHs (LLCs) with only few owners, almost always consisting of members of just one family, and very often family-led. These entrepreneurs know every employee by name, know their story (people often start in the company with an apprenticeshipment and stay in it till they retire) and their families. And they care about their employees. In times of crisis they rather cut their own salary than fire a single employee.
This is the most humane approach to business that've ever read of. Salute to the mittelstand!!! orhave I butchered it?
As an observer I expected this to be an individual point also. There is huge loyalty of the local business man to his staff and the region and also supporting other local companies by buying from them instead of cheaper Far East suppliers because he knows he can trust them. It keeps the money in the local area and country and increases knowledge and innovation
Yes, an example : Zeiss's unique flat mirrors that are used in the machines that produce chips ...
@Mar Coac that's impressive, do the employees change jobs as often as in America or are they equally loyal?
I see this to be more of a result than a reason. Particularly the high educational standard, combined with the social economy and the overall aim for stability can lead to the good environment for company culture of SMEs that you described.
Would add “Mittelstand”: Family-run small or medium-sized companies that are often global market leaders in a very specific product.
This is where other points become important:
- Cooperation between small companies only works if there is mutual trust and trust in the rule of law (little corruption).
- For companies in need, there is “Kurzarbeit” (short-time work) to be able to keep their highly qualified and specialized employees.
- Good vocational training: normally lasts 3.5 years, half in school and half in the company. (Of course there are also universities).
The Mittelstand ist getting smaller and smaller. More and more are getting poor.
Mittelständische Unternehmen sind keine globalen Anführer das schließt sich fast schon aus
While Germany seems to be very innovative when it comes to large-scale or industrial technologies, it is surely lacking when it comes to wide-spead consumer products. Like for example the precursor of the Walkman, called the 'Stereobelt' was invented in Germany, yet never was turned into a viable product. Or the MP3 standard, which enabled the introduction of digital music players was also invented in Germany, yet all the big players for MP3 players came from other countries.
But it Made Frauenhofer rich
Or when it comes to non state owned infrastructure - like internet, telecom, trains
@@vod96 but Deutsche Bahn, a state owned company and main provider (68%, with the rest being subsidized), really sucks compared to other countries in Europe (Germany is 4th for best railway transport) and compared to the efficiency of its private companies
@@Bolognabeef im afraid i dont follow - do you mean that DB is good or bad? Because im saying its bad
@@vod96 the Deutsche Bahn is a very big company. 90 procent is for goods and 10 accounts for passenger transport. As a Dutchman working for the dutch railways on the international passenger train from the Netherlands to Germany (ICE Amsterdam - Cologne - Frankfurt or the IC Ámsterdam - Berlin) I have to say the the German passenger railways is pretty bad. Some numbers: 25 procent have IC and ICE (high speed railway) have delays and passengers (especially from germany) are complaining a lot about the DB. Then in the summer the airco (AC) or often not working or the restaurant is not open due to technical issues. Then because of the delays DB have to give passengers a voucher for hotels where they stranded, and this is on a daily base a huge business.
Many people from the Netherlands think that the Germans are punctual and better but referring to the railways that is sadly not true.
In order to change this, germany wil need many years. There is a shortage is staff on every level. And maintenence on the tracks was the last years not very well done.
I hope the Germans will fix this 😀
Your economic success story videos for the large part, used to cover only policy based reasons for prosperity. I am happy that you have actually started mentioning social and cultural reasons too in these videos.
@Mar Coac your personal experiences don't matter, the truth is that the frugality of certain people's culture is reflected in their government.
10% of the richest People are 80% of Capital and Business in this Land. Thats are terrible! The same as in the USA !
I learned a lot from this video, although I studied in Germany and lived there for many years. I always admire the stability, the consensus and the long-term policies of the German, mentioned as the 3rd reason for Germany's success. In the country I live as well as the country I come from the long-term policies are like absent. The people in power would make short-term policies, that they quickly put together during the election campaign. Therefore such policies don't address issues, that need long-term solution. Otherwise to all from the UK I highly recommend the book "Why the Germans Do it Better: Notes from a Grown-Up Country" by John Kampfner, where other many more questions are answered.
I wouldn’t call cozying up to Russia for all those years long term planing at its finest
Yeah like strangling themselfs ith Russian resources and my car parts coming from Germany late because they don't have cheap resources anymore... 😂
I'm glad they were able to spend so much in R&D while becoming dependent on cheap Russian energy and not contributing enough to their national defense spending. Ideally that R&D will soon pay off in the Ukraine war efforts.
@Mar Coac 🤣 Maybe !
@@hieubuiminh4739 Yes, this is the missing point of the video : the energy issue
Germany is Germany because of efficiency and straightforwardness of Germans. They are dedicated, hardworking and hard bent rule abiding citizens. It's the same as Japan, Japanese people are the reason behind Japan's advancement the same as Germany.
The funny thing is, that the germans think the same about the swabians (a german group). It is true for entire germany, but the swabians top it.
"Schaffe, Schaffe, Häusle baue"
(work, work, build home(s))
My area has an different saying
"Lieber n Ranze vum Safe als n Buckl vum schaffe"
(rather a big belly from drinking than a big humpback from working)
There is some truth to it, but in general it's a fairy tale. Mentality has an influence, but it's only half of the story. The other half are business decisions by company leaders.
The Introduction of the Euro was very profitable for German production, locking in prices well below the D-Mark thrusting demands for Made in Germany goods.
Without this advantage, Germany would have kept its currency.
Another Brexit fake news story
@@daniel6009 As the founder of (forget what was called), Germany set the terms.
@@wilhelmeley6617 Thank you, that's what it was!
The euro was greatest scam for german people and europe though
Great video. Like others said, the SME's play a large role in Germany's success. However, I don't think this can be copied into other countries as it is highly included into the culture over many generations and is still true to this day. For me, living in America, I see why the US is in such bad shape. Education, debt, no innovation and populism. If Germany can stay it's course and keep those values, it will always stay ahead of other nations.
We will stay in this course. Not even war brought down the german values of productivity, loyalty and work ethics
In Future German Economy will go down like in the States, we are Export Champion but the workers doesnt have an advantage. Also the demographic is a huge problem, the old retire and no new are coming.
About the financial crises: It isn't only about debt, it was a lot about keeping up the production capabilities. When the crises startet the government financed "short-work" (Kurzarbeit). So workers got their full wage while working less hours (financed by the government). Companies could on that way face the shrinking demand without firing anyone. When the global demand did rise again, German companies were just quicker in reestablishing their old production abilities. The didn't had to hire again, they just could call there employees back in.
Kurzarbeit doesn't mean workers get their full wages when they're working less. They get 60 % (or 67 %, if they have children) of their net wage for the hours they don't work under the Kurzarbeit scheme. And it's financed by monthly social security contributions by workers and employers (although in times of large-scale crisis, such as the 2008 financial crisis or, more recently, the corona pandemic, there are additional subsidies by the goverment).
That said, the system does serve to preserve production abilities, because employers don't have to fire their workforce and have them ready at hand when things start getting better.
How come no one commented on how efficiency, planning to the last detail and timeliness is hardwired in germans…they take the mantra of “first time right” very seriously and give 100% to whatever they do…really admire their work culture and work ethics.
as a german, i have to correct. yes, some people are like you mention, but we have plenty of others who are lazy, unmotivated and do a shitty job overall. wemight not have as much of these underachieving people as other countries, but still alot of them. so, the statement "germans are..." is not a realistic one.
I work in Germany and in a corporation sadly the employee's are lazy the management planing is a joke and accounting is compere to a farmer market
@@raze956 may be the germans i was interacting with were the studious ones …but yes as in most of the cases we have exceptions to the rule…so i do agree with what you said…damit bin ich einverstanden 👍
@@Zombie_M8 Sorry to hear that
@@Zombie_M8 Sounds to me like the definition of german phone and internet service providers 😅
Nice video, but the main point of seperation at school is mostly focused on mathematic understanding, even if you would land in the lowest form the "Hauptschule" (takes 9 instead of 10 years) you could add one extra year to get to the "Realschule" (the middle one take 10 years) and from the Realschule you can go onto a Gymnasium. After the 4th grade the elementary school teacher will recommend one of the 3 system to the parents but in the end parents decide where the child goes
in my opinion this is more than a weakness of the germans and the reason we dont do good in pisa. Its proven to be better to select students later like after the 6th class. You need a clear goal to preform well in school and thats often not the case at that age.
@Sebastian Jung I second this view. It is too early. And if it were not scary enough, for many people, even at the age of maturity, it may be early. Couple that with the pace at which our modern society redefines jobs based on what is needed, and you can see that training people in school for particular careers is no longer a sane, long-term model. Rather, focus on generic skills, help kids develop critical thinking, acquire skills and learn to be autodidacts as much as possible.
@@tcioaca Yes maybe the separation should be shifted 1 or 2 years, but mostly for the social aspects.
On the second point of your comment, I think you misunderstood how the german school system works. We don't train kids in school for particular careers. The separation is in much much broader categories that aren't even very sharp defined at the edges and you can change paths later when you want to. Even in our form of vocational training (wich is after normal school) more general subjects and skills are trained in the acedemic schooling part of it. (The vocational training is split in about 1 1/2 to 2 days school and 3 to 3 1/2 days of work in the company.)
Different states of Germany handled this slightly differently and experimented with educational separations. Berlin for example separates after 6th grade. Lower Saxony had an "in-between-school" (Orientierungsstufe) for 5th and 6th grade only to prepare and separate students for higher educational schools. They were designed to pigeonholed the kids. These were well advised to fit themselves into their given place as accurately as possible. This system was neither pleasant or cost efficient or effectively on the job. So finally they where abandoned around the year 2000.
It must depend on the State you are living in. In Berlin we are separated after 6th grade (4th grade is way too early imo) and it wasn't mostly based on mathematical understanding (German, English, Chemie/Physics/Biologie, Geography/Genral Knowledge etc.). You can also choose to go to a Gesamtschule instead of Hauptschule, Gymnasium or Realschule.
I always thought that you have to finish 10th grade before getting a Hauptschule certificate.
AGREED 100% to your talks on Germany! A great & sharp analysis! Big thanks
Great video !!!, hope VisualEconomik will have more videos
They never gave up... Respect
As a German, this video was really interesting to watch because in our media the focus is often on what is going wrong in our economy, politically or socially. So hearing how bad everything is going in Germany on a daily basis makes us citizens things everything goes wrong. So it's good to see our country from a different perspective to get a more well-rounded picture. Thanks for this video.
Das waren auch alles Zahlen von früher, die heutigen Entwicklungen ergeben einen ganz anderen Trend.. Industrie wird abgekauft, wandert aus oder wird kopiert von China, Billigproduktion unterwandert eigene Unternehmen und diese brauchen ausländische Investoren oder machen zu. D.h. Arbeitsplätze fallen weg, Entwicklung und Forschung gehen in andere Länder und das BIP wird über kurz oder lang schrumpfen. Die deutsche Wirtschaft hat schon heute viel weniger Wachstum als noch vor 2 Jahren prognostiziert. Und das wird nicht auf magische Weise anders werden, sofern die großen Innovationen nicht wieder hier stattfinden werden, sondern in Ländern wie China, USA. Die Infrastruktur wird ebenso nicht besser. Also zeigt das im Video eben nur eine Seite der Medaille, wir stehen vor großen Problemen.
Kann ich nur zustimmen. Finde das sehr schade bei uns.
That's like most of the developed countries
50% of Germans don't have any savings at all wouldn't consider that rich.
this is the thurth of all countries. A small group owns the most stuff. It happens everywhere
@@RavenRock88 home ownership is also one of the lowest in the EU
@@rodox2832 yes. totally right.
@@rodox2832 It upsets me, nobody talks about poverty in Europe
Germans are far less privately indebted than U.S. Americans, for example.
very, very nice made video, thumb up. i just miss one point: the climatical advantadge: its easier to work when its not hot
Bro, amazing video, THANK YOU!
As a German I can cleary say that the separation isn't that "hard" in reality. For about 10 years there's no more bounding recommendation after primary school. So even if you're not the greatest student, you can visit the "Gymnasium", if your parents want to. And you only need to change your school if you repeatet a class twice.
True. That is one of the reasons why our strength is provided by the older generations and why many of the younger people cannot match the quality any more.
If a child shows good academic and technical ability is there still the option to go to the more acedemic school rather than vocational school? Or is that optional not there at all any more?
@@paulklasmann1218 The option for the academic school is still there, however it's level of quality decreased over the years. Still good, but not as good as it used to be. That's my general descreption of my homecountry germany: good, but continously decreasing.
@@alexanderklimke6508 Thanks for your remarks. I'm from the UK but moved to Germany in 2020. All the more reason for the parents to nurture the child's education and encourage them. That may also explain the worsening shortage of good engineers, doctors and nurses in Germany. There is a chronic shortage of skilled people, so much so that we have to find them abroad and bring them here. The same is true in the UK. Less students are taking the "difficult" subjects. I blame schools, parents and popular culture/social media.
@@alexanderklimke6508 Is it possible for parents to get involved with schools for special days where the parent can teach a particular subject or hold after-school educational activities?
Quality ! Germany is top world quality producer ! Everything top quality !!!
Looking dapper, Mr. Faulks!
@visualeconomiken Could you perhaps include a line grid in your graphs in the future? It would help interpreting plots such as the one shown at 7:15 tremendously.
There are 3 main types of line graphs in statistics namely, a simple line graph, a multiple line graph, and a compound line graph. Each of these graph types has different uses depending on the kind of data that is being 7:16 evaluated.
Source: Formplus
Such a shame Germany got all the blame for WWI be course of France’s proudness who lost the 1871 war to Germany. Which ignited WWII and the totally downfall of Germany in many aspects.
It's not a shame. Yes ignition might have been the big depression of 1929, but what followed was were own decision in most aspects.
Of course, what people should do is, separating Germany from 1930 from 1960. It's like two countries, just some people stayed.
In Australia our high school systems is also split 3 ways. We have regular high schools open to all, then we have private/religious school open to mostly people with money then finally we selective school open to only people who have academic scores in primary to school to get in.
That doesn't resemble the basis of the German school separation at all. The German system emphasizes vocational training and apprenticeships a lot more, not just public versus private or selective 'gifted' schools.
@@ArawnOfAnnwn Public high school do emphasizes vocational training and have 'Work Studies' classes to help people get a job when they are done with High School.
I am not sure Private and selective school do that.
For selective school I guess they would want kids to go on to Uni to be doctors, lawyers, engineers and whatnot.
For private religious school, their parents pay a lot of money for their kids to get getting so I don't think their parents would be expecting them to end up working as a mechanic, or digging ditches.
Disagree big time, absolutely no similarities. I been in both systems. Private schools give you better access and contacts after, but is not better than public. Private in some schools have better teachers, but that is not uniform
Great video!
Fyi: Elementary parts of the agenda 2010 policies have recently been abolished. Although they did indeed create a lot of flexibility to react to economic crises, at the same time they also allowed the emergence of a huge low-wage-sector. Which is in part a disguise for unemployment. Combined with 'relatively' high social security coverage for actual unemployment, this caused social disturbance. Whether the new system is better or not can only be observed years from now. Also the gap between poor and rich has increased, such as pretty much everywhere else in the world. Hopefully tho, the political stability will continue and not follow some of the neighbor's countries.
Yeah, there is another major reason for Germany's success. As you said our economy was totally eliminated after WWII. The phase in which Germany raised up to being a wealthy country again is called "Wirtschaftswunder" (economic miracle) here in Germany. This was only possible due to 3 reasons, lend money from the USA, highly motivated workers and lastly immigrant workers. Germany literally advertised itself in Italy and Turkey to gain more workers because we had more work places than workers. So yeah, a large part of Germany's economic situation was only possible because of the "Gastarbeiter" (guest workers).
as a German, I like seeing these positive comments. However, these days, it has to be said that the effective tax rate here is Progressive and also way too high. unnecessarily high. so high that it lowers peoples ability be sovereign and create wealth for them and their family. its state VS individual here. life quality has also been deteriorating after roundabout 2017. all of that... its also scaring off businesses, which means it scares off wealth creation opportunities for all. also, a "social market economy" like ours is BARELY a market economy. and people would be a lot better off with more free markets and less rules and regulation and taxes. you can't punish the most productive people for being more productive by taxing them more than others, who already pay ridiculous amounts. the top 10% of earners pay 55% of the entire tax revenue. the result of that will be the people, who enable all the other people to even create wealth and prosperity, who offer the average person the opportunity to even have a job, leaving. we have a huge social state, way too large, and yes, THERE IS SUCH A THING!
Trade union issues are ingrained in society- living wage, health care, social security, low unemployment , education, transportation, etc. The playing field is already near level. Then the focus can be on quality of work. Agreements are on more than survival issues.
Great Info!
Thank you...I am German living in Canada and missing everything about my German lifestyle.
I would also like to add that university and colleague is basically free (around 350€ for a term). When you decide to do the vocational training you get paid a salary from your first day on. We also offer a hybrid of university and training with a chosen company eg Siemens or Mercedes. It's called dual study and here you also get paid a salary and the company covers all costs related to your studies.
This enables everyone to peruse education
I believe the real reason for Germany’s success is the ability of their politicians to jointly work for the best for Germany’s interests. Unions working in collaboration with companies instead of opposition.
It is worth questioning who is rich in Germany. Like in many countries, wages aren't increasing similarly to living costs. In fact, employment contracts in present Germany are way worse monetarily compared to 20 or 30 years ago.
This is a VERY BRILLIANT video by a very brilliant creator!
Such a manipulated graph at 12:22. Mind blowing.
The German government is rich. The median fortune if the average German citizens is about 62.000€.
The average Spanish fortune is 120.000€, the Italian is roughly 180.000€.
Among the OECD countries just the Estonians are poorer.
I would add their energy policy. Until recently their low cost energy driven by Russian policy was a huge competitive advantage from an industrial policy
Federism is also a key to understand Germaniens culture and politics. The states compete with each other and partner when it comes to negotiations with the federal government. Education for example is mostly to be governed by the states. Business taxes are regulated by the Municipalities. So there are many fields of competition within a bigger system. Also the fact that there are several relevant elections every year make it hard to play a short term game as politician. It only can pay off on a super short term.
The federal system goes back to Germaniens confusing history of countless small states instead of one empire.
Therefore, it could be the template of a Federal Republic of Europe?!
Federation can't be answer for everything
Look at India
A big Britsh made frankenstein
No Simon, it goes back to the Holy Roman Empire of German Nations.
@@TheAlexkor ...Which was created by saxons, bavarians, teutons, francs, ...
just to fall apart again to even more clans and principles than before.
The theory from the national-identitarian 19th century that the Holy Roman Empire was the origin of Germany ignores the history of many centuries and is considered outdated.
Inspiring.
Man your videos are way better than DW, Histroy channel and NatGeo. Excellent!!
These are just the basics of running a country, don't know if that just shows how bad other governance is of other countries 😑
What music do you use for this video? All tracks are so catchy
I am from Germany and this video is far too positive on the $it$how we are currently in. Many problems in Germany...... unfortunately
Exactly this video is from someone who is either using material from the eighties or has very superfical knowledge. Just need to think of all the BS the momentary coalitian goverment is doing and it beats me how you can say things are positve in this video.
Yes because we for voted for ideals and no reality to often.
Das ist Korrekt und darum hat dieses Wirtschaftsmodell für die breite Bevölkerung keine Zukunft!
@@Willburys Alles klar. Und das denkst du weshalb?
Vollkommen Korrekt.
Die Innovationskraft basiert in Deutschland noch auf den alten Tagen.
Was Zukunft Technologien betrifft hängt Deutschland vielen Ländern hinterher.
Dann kommt noch hinzu dass das Bildungssystem im Vergleich zu anderen Wirt Nationen miserabel abschneidet. Was nicht in der Zukunft helfen wird den Innovationsrückstand aufzuholen.
Und hinzu kommt das wir einer der höchsten Steuern haben mit einem niedrigen Anteil von Eigenheim in Vergleich zu vielen anderen Wirtschaft Nationen.
I find that software developed in Germany are very much better than from anywhere else. I do software development for a living and I know good software almost as soon as I start using it
but good software, you don't evaluate by using it. You do it by looking in the code.
But the back side of this thouroughness is: Instead of putting 1000 softwares on the market, there are only 50 arriving. They are hesitating too long to put something on the market, that's a disadvantage in a fast industry.
Cheap labour in eastern europe, cheap resources from Russia. Gold and valuables from 2WW as a good kickstarter. Reduced expenses on military (US support) and ok they are industrious well educated and expansive.... oh and i forgot about euro currency that suits them and Benelux countries.
So right, education of all people is the most important reason for the success of Germany. We had nothing, no factories and no natural resources but a lot of skilled workers, many from the former german parts of eastern europe. They were poor but educated and eager to get a better future. That was more worth than old factories in France and Great Britain.
You forgot the (in my opinion) most important reason. The mindset of the people. Germans are build different. They are mashines. Strong, efficient, educated, punctual and directly. Most of the times they are brutaly honest but thats ok. Like you said they have a long history with a lot of struggles they had to go throuh. They fall, they rise, they fall again, they rise even greater.
Auferstanden aus Ruinen^^ The german economic is much like a phoenix. And thats why thair mindset is so unbreakable strong.
Don‘t underestimate the de-centralized structure in all aspects.
Lots of love from India! Keep up the good work!!!
To suggest an answer to your concluding question, is there veracity to the german flight capital plan during the second world war?
On the last point you've touched on the finance and lower debt, but don't forget community banks, without them German SMEs wouldn't thrive and its effect on the economy is felt on German society as a whole..
Geographic location determines nearly everything. Germany's climate is stable. It can produce lots of goods in that climate. It's surrounded by several countries to trade with. Large part of it can be cultivated. Very few major natural disasters have happened that required massive rebuilding. Without these conditions, none of the other conditions could follow.
What you describe is more like the big advantage of Europe and North America in general. Many western countries have exactly these conditions, that's why the western hemisphere is so rich in comparison to Asia/Africa/South America. But of course the western countries differ from each other. There are many little differences between the countries. And this video is about these details.
@@arctix4518 I gave a simplified version. Other environmental differences; soil type, type and number of rivers,, distance to tectonic plate boundaries (abundance of deep earth metals), connection to sea, sea ports and trading routes. Rain abundance and patterns. Mineral availability and access to it. Types of larger animals, can they be domesticated,, can they work for us. The amount of woodlands available (boats, wars, castles). Number of diseases, their transmissibility and cost. We, humans, exploit these geography advantages, thinking it's our mastery. Our social dance is but a small thing in relation to the rest it's only the last 50 years (and not all countries) that global supply chains are solving some of the geographic disadvantages. That's one generation.
all fair and valid points. Maybe I overestimate this but I want to mention: introducing the Euro maintined a low price for to-be-exported goods and services. Considering Germany was "Exportweltmeister" and still very focused on export that gave huge leverage for all industries. At the same time that shared currency gave the most important export markets for germany, the euro zone, access to "cheaper" money as interest rates now have been averaged with very low german interest rates. long story short : introduction of the euro as a major contribution for economic success starting at the early 2000 years
8:00 yeah, no. Since the school choice has been given to the parents, most wanted their kids to go to the gymnasiums the schools for the smart leading to them getting all the students and with it funding while the rest is barely scraping by leading to more parents wanting to put their kids in gymnasiums
Germany efficiency and productivity is a wonder to behold and a model to follow ... and equally terrifying when they stop playing nice. Never ever underestimate German resolve.
German productivity is definitely impressive but not their efficiency. Germany isn't efficient at all. BER airport is one such example.
@@macroxela compared to other countrys we are still pritty efficient
Its too bad they cant string together a good national energy policy
@@instanoodles lol, agreed.
Germany was bailed out. They didn't get where they are due to efficiency.
The Euro is another big reason for their success, especially in the past 20 years. When the Euro was created in the 1990s, Germany was the sick man of Europe, as you mentioned in your video, but what this meant is that the Euro was created with an under-valued Deutschmark, so for the past 20 years the EuroZone has been a protected market for German products. If there were no Eurozone, the DM would have appreciated against other European currencies as the economy of the former East Germany recovered from the shock of reunification, and Germany would not have had such an enormous trade surplus with the rest of Europe.
The German economy was stronger before the advent of the euros. What the euro did was it helped them buy cheaper raw materials for their industrial juggernauts. The Deutsch Mark( DM) was much more stronger and stable than the euros...
West Germany was already biggest economy in Europe before fall of Berlin war
You forget why Germany was th sick man. The cost of reunification was some trillions. And in the formerly socialist part named GDR they had to build up infrastructure and factories. As well the ratio of unemployment was up to 30% for a long time.
At the same time there happened the Strukturwandel in the west and south due to the ending of coal and steel industry. Many companies closed. It was on the news every day. Many companies outsourced work to Asia due to competitiveness. That were practically two Strukturwandel at the same time. It took two decades to overcome that.
Sure the Euro was good but the importance of Europe as a market has been shrinking over the years.
@@To.Si.Ma. You forgot another important part: in year 2000, the stock market wordwide crashed and lots of countrys didnt import so much anymore for some years. Germany was already "Exportweltmeister" at the top as export country, so when the entire world dont buy so much from the world market, they dont import from Germany as well, so there are less jobs in Germany. And another affect: chancellor Schröder and his government changed the laws, so because of these changes, the statistic for unemployment went extremly up for a few millions... my theory: they were corrupt and looked for an excuse to install a big exploited, cheap work force.
@@sammybeutlin2763 I had to research the export statistics and can t confirm that.
But talking about Schröders Agenda 2020 that was pretty much about faking statistics. - There were more peole unemployed then counted in the lists. Since they received social wellfare Hartz4 or they made a 1 Euro job or opened an Ich AG (1 Person company) or they received any other substitution they were not in the statistics for unemployment anymore. But at the same time more and more people had to ask for financial help.
So the statistics for unemployment went down but at the same time more people depended on financial aid.
You are wrong on that point.
That was the Agenda 2020. Faking statistics.
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As a forty-year-old German, I don't even know where to start. The German state is indebted to the point of no more. But we are creditworthy, so we keep taking on more. The capital Berlin alone would not be able to keep its head above water without federal funds, a bottomless pit. Nothing has been invested in infrastructure for ages, such as roads, bridges, fiber optic internet, etc. We're drowning in bureaucracy at all levels. The opportunity for advancement for the poor in education is nil. We are an extremely jealous society that is jealous of the unemployed and refugees because they are said to get more money for doing nothing, which of course is not true. The government has repeatedly missed the expansion of renewable energies. You hardly get a kindergarten place here. The health system here is a disaster. Hospitals are closing in droves because they are required by law to make a profit. My city's hospital hasn't had a maternity ward for years because it doesn't bring in anything. Some old police stations are contaminated with asbestos, known for years, nothing happens. The government lacks real vision for the future. The powerful business lobbies influence politics so that hardly anything is done for the common man. The Bundeswehr has been saved to death since the 2000s, which is particularly affecting us in the Ukraine crisis. Even before the arrival of the Syrian wave of refugees and then the Afghan and Ukrainian ones, more than a million apartments were missing here because the government has hardly built any social housing and is still not able to do it. Small houses in cities like Hanover near the center now cost one to two million euros. Even most Germans say we are such a rich country, the truth is that the number of millionaires is only increasing, which falsifies the income statistics. The middle class has been disappearing since the 2000s and poverty is increasing. The Germans have had fears of decline and existential fears for 20 years. Retirees cannot live off their pension. The pension system from the days of the German Empire will soon no longer be viable because fewer young people are paying in for the aging society. The government doesn't do anything, just says work until you're 70. The queues in the soup kitchens are getting longer and longer. The reunification costs a lot because the ex-GDR was on the ground. Also, under Chancellor Schröder, Germany became a low-wage sector, so that ordinary workers can no longer make a living from it, until today. Social benefits also have been cut drastically since then. Statistics only look good to economists on paper. Germany was at its peak in the 1980s and 1990s, but then the decline began. Corona, inflation and the Ukraine crisis are hitting us hard. The only consolation here is that things are much worse elsewhere.
Interesting to hear this from a German citizen, liberal newspapers like the Guardian in the UK are always portraying Germany as a huge success story and to be emulated in all areas. There are regular posters in the comments section, Brits who now live in Germany and claim it's nirvana. But I've suspected that the average German is getting a raw deal from the EU, they and the Netherlands are holding up the Euro and allowing citizens in other European countries to have higher levels of social spending than they would otherwise afford. The retirement age in many of these other countries is years before Germany. Would you have a better standard of living if you had kept the deutschmark?
I fully agree with this. I'm also a fourty-year-old German, but I emigrated a few years ago. Nevertheless, I deal with German public institutions on everyday basis in my profession. Germany is about a decade behind almost any of its neighbours when it comes to digitalization and efficiency of public services. And the worst thing is that, in public services and the legal system, there is no motivation any more to get back on the path of a world leading country. Shutting down nuclear power plants and other expesive ideological projects have become much more important than anything which would ensure the amazing level of wealth also for the future. The mentioned Agenda 2010 twenty years ago was the last attempt to make reforms to the extremely expensive social and tax system. During the sixteen years of Angela Merkel, nothing happened in this respect at all.
@@catinthehat906 I wouldn't say at all that the EU is a mistake, even if Brussels likes to exaggerate the bureaucracy. Germany pays a lot into the EU, but it also exports a lot. So it is not entirely altruistic for Germany to help finance other EU countries, otherwise no one would buy Volkswagen and so on. Even the Deutsche Mark would not change anything because we would have to exchange them for euros etc. anyway when doing business abroad. But many older Germans mourn the Deutschmark. Times were better, but that was only partly due to the stable currency. It's globalization, competition, politics since the late 1990s and not everything can be cheap enough for the Germans, including wages. The average citizen finds so many things unfair here, especially when funds are made available for abroad. German politics doesn't care much about ordinary people, but rather about the German stock index, large corporations and export deals. Corporations blackmail politicians into saying that if they have to pay higher wages, they simply produce cheaper abroad. That would not be possible in France and England. The people there wouldn't go along with it in that form. The business lobbies are too powerful here, they often dictate politics. It affects wages, food prices and so on. The welfare state is disappearing more and more. This creates dissatisfaction and unfortunately gives the right wing a boost. Ordinary people do not understand paying through the UN for flood damage in Pakistan while here the flood victims of 2021 still live in ruins, or some that Ukraine receives a lot of money but they have to go to the soup kitchen themselves, despite working. And not even the soup kitchen gets money from the state, it's privately organized. Until recently, there was also a levy for renewable energy, which all private individuals such as the unemployed and pensioners had to pay with their electricity bills, but not the power-guzzling factories such as a steel mill with electric blast furnace. All lobby politics. Hardly anyone here can live on unemployment benefits and pensions. The feeling of injustice here in politics is enormous. In East Germany in particular, wages are lowest there because of the costs of reunification. West German clients often order construction companies from East Germany, for example, because they earn less and are therefore cheaper than companies from the West, even if they have to travel long distances. In Germany, many things are done privately on a voluntary basis, which the state should actually do. The living standard sinks and becomes more expensive. As I said, Germany is only good at making millionaires and companies even richer. The normal worker gets nothing from the cake, wealth is not really redistributed here, so that everyone benefits. That's why the call for an unconditional basic income is getting louder and louder, since even employees and the self-employed go broke in the crises. We have a much slower internet than Albania, it's just embarrassing to be German anymore. We were that far ahead once. The old myth about Germany's economic miracle lives on abroad. Abroad, people always think the money is lying around here on the street. In the late 1990s it was said that in the near future we have American conditions here, that has been true for years. The middle class has almost disappeared. Traditional companies that are more than a hundred years old have gone under in the corona and inflation crisis. And it was hard enough for small business owners before. In short, most of the grievances here are self-inflicted by the government.
@@svenzwergreiher5664 The nuclear phase-out is correct, since not even the question of final disposal of nuclear waste has been resolved. In Germany nobody wants to have a repository in their vicinity. A nuclear waste dump was also supposed to be built near me, which fortunately didn't happen. You have to be able to store it safely for millions of years. The nuclear disasters of Chernobyl and Fukushima and the fighting at Europe's largest nuclear power plant in Zaporizhzhia are enough for me in my 40 years. Nuclear power plants are also a possible target for terrorrists. Even if the last German nuclear power plants disappear, the ancient, faulty ones in France and Belgium could still blow up and make half of Germany uninhabitable. As I said, we have delayed the expansion of renewable energies several times and canceled the subsidies for them. 16 years of Merkel were a total standstill. In foreign policy she stood for stability, in Germany she was hated, especially for maintaining Schröder's Agenda 2010 and the lack of visions for the future. Digitization in public services, as you rightly say, hardly exists here. But we also have an aging society here, which is not enthusiastic about it anyway.
@@The_real_Marcoman yeah the German society is Bräsig and quite awful actually
You forgot the most important way they became rich. Charge you 2 euros any time you need to take a piss. 🤣
In the village i'm from we have a tiny company. This company has only ten employees but they produce for the world market. Specifically they produce high precision lifting benches. Those lift only to around 10cm height but you can lift to your desired height with almost nanometer precision. Doesn't sound really useful, does it? For what application do you need to lift somethig to nanometer precision? The anwser is: The production of modern high-end chips. They have have a couple competitors worldwide but none of them can reach their precision. You can pretty much assume that every single chip producer worldwide and most likely every single research institute worldwide had at some point business dealings with that tiny company situated in a tiny village in germany.
I know someone who grew up in Northern California migrated to Germany. I've his pics on Instagram working various trade jobs in Deutschland.
When you add in what we pay for healthcare some US States have far higher taxes.
healthcare is not tax-financed in Germany. This comes on top of Taxes. 7% usually.
Nonetheless, the bureaucracy is the worst here 😖
If you are producing part X in 1minute but you have 10minutes of bureaucracy for each part, that can't be efficient.
But everyone is insured, thats really nice. No big worries after an great misfortune("Schicksalschlag") of a friend.
I Like that^^
Then you don't know the British bureaucracy :)
What year is the post from? It can't be current.
Lmao, 1:43 that’s Tübingen a rlly little german city for students. It has 90:000 inhabitants 😁
I think the world should believe in German - a language with a logical structure like no other language - for instance, Relativity theory was considered in German and the basics of rocket technology or the communism manifest were thought in German.
Until World War II, German was the language of science. Many scientists of non-german speaking countries understood German.
germany had to rebuild after WW2 when France and Britain stripped them of technology. This means they had to rebuild with new technology with help from the US due to fear of communism. Britain had to pay back lend lease and the technology taken aged on infrastructure built during the Victorian era. In some ways loosing WW2 Germany actually won
Indeed Germany had kept the know how (companies did not vanish), they only gave "freely" patents, some of their top engineers and scientists were quite happy to be moved away from their former "working for the devil" german workplaces and have the possibility of "redeeming" themselves working aborad for former allies (eather West or East)... The discipline and the industrial and economical nationalism reenforced by the 3rd reich was still in the air after WW2... VW and the Beetle car are a perfect example of that.
West Germany was kept away from some industries (eg armement) but not for very long...
Especially GB took machine tools from Germany as war reparations. The Germans bought new ones with the latest technology using money from the Marshall Plan. Guess who was more productive in the following years …
The school footage around 8:05 is datamoshed so it looks like a cool music video.
Germoney: work work work
Nice, so everything that lead to this succes the greens want to roll back ^^
VisualEconomik forgot the German work ethic, which is or at least was up there with countries like Japan.
In our company we have a list of orders regarding the work discipline in german and japanese (Hessen)
Amazing
7:55 in Luxembourg too
Did you hear about the electric car from Germany?
Its called a Voltswagon
good one
Culture
Good products, hard wirking labour force, socical securiry, work ethics and skills and political stable. No other nation has all those 5.
People in germany always complain, no matter how nice the life here is. Might also be a reason for constant improvements.
I think the long-term stability and practical approach to education (especially trade schools) are the main reasons for German's success. Not sure about the innovation though - Germany isn't even a leader in Europe in terms of practical innovation, and Europe as a whole is well behind countries like the US or Israel in this regard. Perhaps you meant to say that they invest in improving their existing industrial processes, like the US does (but surprisingly most countries don't). That's sort of innovation too, and indeed it can be said that Germany re-invests in its industry.
In the current Bloomberg Innovation Index 2021, South Korea takes first place, overtaking Germany. So in 2020 Germany was the most innovative country and in 2022 it ranks fourth. Still a top spot.
@@nettcologne9186 I think this index credits Germany a bit too much, but it also points to what I was saying: Germany is a leader in industrial manufacturing, and any improvements there are considered "innovation". Maybe it's just me, but when I think "innovation", I rarely imagine better industrial processes, but rather new consumer-facing inventions. I realize that both are very difficult, and credit is due for industrial innovation. Germany, according to the index, has a lot of industry and high-tech manufacturing. This is correct. I'm not sure it should be such a key part in the innovation index though.
@@Ynhockey You mean new pro-(!) consumer-oriented inventions?
Well, due to the higher automation and robotics, i.e. the application of these (see my comment above) innovations, German workers/employees are more productive within an 8-hour working day than American or British colleagues, for example. For the same result, Germans have to work less. This leaves Germans more time for family, friends and leisure activities or travel.
(You can always find a German on vacation in the most remote parts of the world :-)
Germans therefore think, that their innovations are already
Pro-(!) consumer-oriented inventions.
Or did you want to point out something completely different?
@@Ynhockey how do you come to the conclusion that not consumer-facing innovation is worth less?
@Mar Coac it always depends on who you ask
Now don´t forget about the excellent social security system (excellent in comparison to most big countries).
At first I thought you are going to talk about our car industry throughout the whole video lol
Love this video. Though, seems like it could have been shortened to: less free market, but the government does its best but to totally shit the bed, so it works out on average to be not shitty
Well it's called social market economy. And it's definitely better working than the free market in the UK or the US. We call there system "Raubtierkapitalismus"... literally meaning predator capitalism. Short for the the strong have everything, the weak are eating shit
You forgot geography. Germany has flat fertile farmland with many navigable rivers for transport.
1/3 of Germany is forrested and most of the country is hilly with the flat north having been swamps. Germanies soil is a laughing stock compared to Ukrainian.
After your logic Ukraine and other actual flat landed black soil countries would dominate the world. But no, hills protect and bad soils make a hardy culture.
While Germany's geography does include flat farmland and navigable rivers, it's important to recognize that this is not unique compared to the rest of the world. Many countries possess diverse geographical features that contribute to their economic and industrial development. The relationship between geography, education, and job markets is complex, and making direct comparisons between countries might overlook the unique factors and challenges that each nation faces.
This Is an incredible perspective as to why Germany has been so successful it’s always boggles my mind
Love youre Videos greats from Türkiye🇹🇷
Great video!
But these music parts are annoying
5. "Vertrauen ist gut, Kontrolle ist besser " (Trust but verify ! ) instead of "Try-Errors" approach. Germans strive to do everything thoroughly from the start to avoid unnecessary mistakes.
6. "German's directness & pragmatism" instead of "Beating around the bush" mentality. It saves lots of time & energy-efficient to work on the problem.
Note : I'm indonesian, working in a middle-sized family owned company who's able to enjoy more liberties & Work-Life-Balance by making out the best of intensive but flexible german work ethic 😉
I think you have failed to mention the advantageous position the Eurozone offers to German exporters, which is likely a major factor for the lack of de-industrialisation in the economy compared to nations like France.
Interesting interpretation! You forget that France and Italy were suddenly liquid, which would never ever have happened without Germany's entry into the Eurozone.
@@nettcologne9186 liquid? What that means
@@manhoosnick solvent, able to pay
@@nettcologne9186 thanks
@@nettcologne9186 Liquid or not, France lost much of its industrial capacity since the 80's. There are probably many reasons for that and the eurozone is maybe not even to be blamed. Germany seems to have played better cards and more smartly than France.
France's relative industrial and economical decline compared to Germany is a very interesting subject that ecompasses numerous and varied subjects (politics, traditions, trends, geographics, culture, climate, education, history, geology, language, religion, nationalism, etc.).
That being said I still prefer being on the French side of the Rhine rather than on the German side, industry and economics are not all...
The great "wirdschafts wunder" has worked very well but some parts have dropped between the governing authorities of the "lander" and national government the most notable being national energy security. Also the automotive technology EV revolution seems to be more difficult to maintain leadership,
no it hasnt. We dont have a wirtschafts wunder at all currently.
We are destryoing our country more and more. People cant pay theyr bills anymore.
Not having to keep an standing army and yet still won’t get invaded is a very good way to save money
It is not so much saving money there. The army is just inefficient, the budget is on the level of france - who has a way more functional army.
aou learnt this "truth" (TM) from Trump didn't you?
Maybe it's also because Germany, after WW2 and finally entirely after Reunification in 1990, embraces the culture of enlightenment, which emphasized objective truths driven by empirical evidence, and is less driven by subjective truths driven by anecdotal evidence. While others have not or only partly embraced this culture.
Not sure this holds true: see anti nuclear movement, anti biotech, no modern information tech, refusal to maintain viable defense infrastructure and affording Green Party phantasy politics to name a few
@@Lengescp You are only pro-nuclear if you still hold the pre-enlightened view that men do not err and the risks you do not see are risks that do not exists, which is almost a religious view. The latest event pro-nuclear activists ignore is the Ukraine war and how nuclear power plants are used to store military weapons and launch attacks on others. Nuclear power plants are a poker game in the hopes, that you hold the better hand and the future won't bring an event which will cause a meltdown. Which is a pre-enlightened view.
No mention about energy and geopolitical long term strategy???
Could you do a movie about AGENDA 2000 ?
Open migration policy was not discussed here but I think it is also. A reason why Germany is rich. Many foreigners or people with foreign origins are creating companies in Germany far more than Germans do. An example is Biontech. Open door for immigration with all its drawbacks had a positive impact on the German industries which lacks and still lack skilled workforce and had helped the companies to find a workforce and produce products in Germany. I work in IT sector in Germany and I can tell you if the government was not facilitating IT specialists to work easily in Germany many companies won't find any specialists and they would be obliged to send jobs elsewhere to other countries.
Arfaoui aymen , How is that different from any other country ? Most governments around the world make use of foreign labor when there is a shortage of skilled ( or unskilled ) labor .
@@seeadler3233 Well, look at brexit britain to see the opposite. But yea, germany isn't unique here.
Literally all western nations accept migrant workers not just germany
@@stormtrooper8420
The differences is, that Germany has accepted lots of unskilled workers and has educated them and their children.
@@frankthetank5708 I don't think accepting unskilled workers are good for the economy, it's a burden
Imagine if Germany still had the eastern part of the country. Its economy would be through the roof. I guess the Kaiserreich did many things right providing education for everyone compared to other countries.
You are describing Singapore education system. Lol i think they copy 99% of Germany education
I wish we could say the same in the United States. Unfortunately, public education in the United States is in the thrall of left wing politics and obstructive teacher's unions, and has been for more than a half century.
No prospects for much change, either.
I would argue that the economic success of germany does not exist _despite_ the high taxes and social expenditure, but, among the other reasonst you mentioned, _because_ of it.
This money is, for example, used to ensure that everybody has the possibility to reach a higher edication without getting into debt (even including paying your living expenses when you are in university - BAFÖG). Another example are the vast social programs, that make sure nobody has to live in fear of getting homeless and thus enable them to take a risk and found a company to make their ideas come to reality.
3 days to start a company?? It takes 10 minutes online in Denmark.
Just for information, Germany is now again the third largest economy in the world, ahead of Japan
Hä? Where’s that data?
@@jonaskehrbaum4261 At the end of 2022, the gross domestic product generated in Japan was around 4.3 trillion dollars and that of Germany just above that.
@@a.h.2460 "Just above", by one dollar ? Isn't it just "equal" ?
And for how long ?
@@a.h.2460 Source?
This video made me hate the uk so much. Damn.