[constantcrying]

Germany's number one economic problem is energy costs. Blaming the increase on Russian gas hits only a tiny slice of the problem.

The real problem is a completely botched "energy transition", which deprecated very important energy sectors, which were still absolutely needed.

To be clear, I am in favor of renewables. One benefit is that they create independence from the whims of the US and Russia. Nevertheless the transition has been completely botched, driving up energy costs and making certain industries essentially non-viable.

The government focused on two things, increasing renewable peak production and deprecating nuclear. What they completely neglected is how to actually have a sustainable grid, which can cheaply deliver energy even with little sunshine and little wind. What was needed was easily regulated power (e.g. nuclear) and sufficient storage. Nuclear was completely abandoned and most government incentives were focused on increasing peak production, neglecting the storage of energy.

This is obviously harmful to the German industry, which is electricity heavy. This problem has also been consistently ignored and actively made worse in recent years, by continuing to shut down nuclear plants, even if it was clear that more energy production was needed.

[lotsofpulp]

While legislation restricting innovation is a problem, Germany, France, Italy, Spain, United Kingdom, all have the same bigger problem of expecting smaller and smaller working populations to support bigger and bigger non working populations.

In the long term, the level of wealth transfer in these countries is not sustainable, and each year it incentivizes those who produce to seek greener pastures where they get more rewards.

Look at these population histograms:

https://www.populationpyramid.net/united-kingdom/2024/

https://www.populationpyramid.net/germany/2024/

https://www.populationpyramid.net/france/2024/

https://www.populationpyramid.net/italy/2024/

https://www.populationpyramid.net/spain/2024/

[constantcrying]

You could outgrow the problem, by increasing individual productivity or you can stop the wealth transfer. It will stop sooner or later anyway.

I made some comments elsewhere about the long term. It is delusional to think that it is possible to continually have jobs that pay significantly more than identical jobs elsewhere in the world.

[lotsofpulp]

Yes, but the two are related because increasing earned income tax and other taxes to fund non workers on people who do work sap the incentive to work in a manner that increases productivity (either via working more hours or working on hard problems).

[constantcrying]

Absolutely, definitely those two problems can only be solved together. Although right now I see very little effort going in that direction. If anything social benefits and taxes are increasing.

Germany's progressive tax system also directly incentivizes working fewer hours, as the more you work the smaller your hourly wage becomes.