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by zinssmeister 525 days ago
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.

1 comments

>The decision to rely heavily on Russian energy to sustain its industrial economy has proven to be a bad idea.

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).

Are you suggesting that Germany is not "free" to choose to have economic relationships with e.g. Russia because of United States military reasons? Do you think the US military is the primary reason Germany (the people, the government) is reluctant to trade with Russia?
>Are you suggesting that Germany is not "free" to choose to have economic relationships with e.g. Russia because of United States military reasons?

Yes. America deeply disapproves of Germany having economic relations with Russia and it puts political pressure on Germany to sever those relationships.

It also puts heavy pressure on Germany to maintain good relations with Israel in spite of the racially-motivated genocide (which is a bit awkward morally speaking given Germany's history...).

It's plausible that blowing up the pipeline was supposed to reduce the risk of that relationship being rekindled - it was probably seen by America as a risk that all that was required to stop the Germany economy from screaming was to turn on one switch.

>Do you think the US military is the primary reason Germany (the people, the government) is reluctant to trade with Russia?

I think the reason that Germans are, on average, reluctant to trade with Russia but less reluctant to trade with Israel is mostly about the propaganda they consume which is, yes, indirectly driven by US hegemony.

Non-mainstream parties (i.e. those that America doesn't have its claws into) have a lot of wacky ideas about tossing out immigrants and turning on the gas taps to Russia again. There is a significant risk of them winning.

Just think about it. A German Russian partnership would become a major rival to American Hegemony. German know-how and Russian resources. Can you imagine what a force they would become? From Americas point of view it must not happen. It has nothing to do with Putin in particular, its Russia period. It has everything to do with threats from potential rivals to American power. Nixon and Kissinger thought a China Russia alliance was a threat so did their best to keep them apart. Jake Sullivan, Anthony Blinken, and Brett McGurk are the unholy triumvirate you want to look into for US Foreign Policy decisions in recent years. They obviously thought pushing Russia and China closer together was a good idea for maintaining America's world hegemony. Pax Americana.

As long as American bases remain on German soil, you bet your boots on the ground Germany is beholden to Americas hegemonic wishes.

Must be why the U.S. has been closing so many of them.
> Now Trump is in charge, Europe is being told that it still has to fall in line

Trump might ask the EU to be the 52nd state of the US.