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by zinssmeister
525 days ago
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Germany’s economy has been heavily dependent on specific sectors, particularly the automotive and machinery industries. These sectors are so vital that any decline in their performance could have significant ripple effects across the economy. However, the global market is increasingly shifting towards electric vehicles (EVs) with advanced software interfaces. Companies like Tesla and Chinese manufacturers have taken the lead in this space, while German carmakers have struggled to adapt to the EV and software revolution. Germany also has been facing two big challenges that have seen limited action: rising energy costs and slowing exports to China, both of which have started around 2020. The decision to rely heavily on Russian energy to sustain its industrial economy has proven to be a bad idea. The influx of low- or unskilled labor into a social welfare system, coupled with the challenges of cultural integration (German culture isn't the sexiest of things), has also turned out to be a bad idea. Bonus issue: Germany’s taxes are high, particularly for individuals and workers. Some of the highest in the world. This gives consumers less $ to consume with. |
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The decision to rely heavily on American military hegemony has proven to be a far worse idea than piping gas from Russia. Without military sovereignty, they don't get to choose their economic partners. Without the ability to choose their economic partners, they have to accept dictates about their economic relationships. Because of that they have to suffer.
The same thing happened with Huawei - America decided that Europe needed to decouple from them so decouple they did.
As for the moral argument - what Russia is doing in Ukraine is awful, but what Israel is doing in Gaza (with Germany's blessing) is SO much worse. Germany follows America's dictates on both, so their economic relationship to the genociders is still maintained even though it has very little impact on the health of the Germany economy.
Now Trump is in charge, Europe is being told that it still has to fall in line, but it needs to jack up its own military spending as well - America has shifted focus East and isn't all that interested in defending Europe any more (if it ever was).