“Shortage of labor supply” at poor wages. I fixed that for you. Saying wages are “going up” isn’t sufficient if they aren’t meeting the raised costs of living.
Exactly! For what they are asking...and what they are paying ,are 2 different things....they are asking phd,masters....to pay just above minimum wage..and then they cry "nobody wants to work anymore!" ...add that ,the lack of housing, inflation,bureacracy, living costs....
enginer on boat from Africa , should be help. Bring more this bright young people, they will be hard work, paid taxes, try improve German social benefit system , right, right ? They never be free rider of german wealth
The wages in Germany are pretty good, although they could be better. The real issue is the greedy government legally "stealing" the money trough Lohnsteuer, RV, AV, KV, PV. It's too little "netto" after "brutto". If you add the "Arbeitgeberanteil" in the work costs, you'll realise how much the employer has to pay and how little from it the employee gets. Also the "Steuergesetz" (tax laws or rules) is way too complicated and lacks transparency.
Germany - no career advancement, 40% income tax, 20% sales tax on everything you buy, homes unaffordable, no possible career advancement - gee, why are people just doing the bare minimum to survive and working part time so they can pursue their hobbies in their free time? I wonder?!
Yeah, mostly, but income tax isn't that high -- the various insurances clearly have a function. One can say the US has lower taxes, but if you spend 25% of your income on private healthcare for your family compared to 9% in Germany -- what does "tax" really mean?
Lack of employees? Are you kidding me ? I've sent almost a 1000 cvs....didn't get hired ....my friends the same...and then someone has the nerve of saying there are not enough workers? Yeah, right
@@comdo831 I'm not saying it is, but my friend is British whiter than a ghost....I came here, I got a job in less than 10 days....had a great interview....hired! Now you have 6 interviews....then an email ,saying they found a better candidate...next month the vacancy still there....
@@icosch929 then "blame it on millenials with their avocado toast " ....."nobody wants to work anymore!" ,I kid you not, some jobs put " free water" as perk...
The problem is competition in the international scenario. Multinational companies can move their operations to countries where people work more productive hours. The consequence is local unemployment. Yes, it's a race to the bottom, unfortunately.
In Europe, there's a growing sense of neglect towards the younger generation. They face lower salaries, longer work hours, and increased responsibilities while witnessing a surge in billionaires, particularly in countries like Germany. The housing market adds to their woes, as property prices soar, making it difficult to afford homes, let alone start families. To compensate, cheap labor from abroad is often favored, leading to frustration among the youth, who feel betrayed. People aren't inherently racist, but this frustration arises when governments prioritize external labor over addressing domestic issues. It's high time politicians acknowledge and tackle these pressing concerns rather than resorting to distractions. The younger generation deserves meaningful change.
"Cheap labor from abroad is often favored." -> I can approve of this. Even in my former software consulting company, where I worked, the testers were from Morocco. In Germany, the companies I applied to then stated that they have workers in Romania and Poland, outsourcing to other EU countries with a lower cost of living than ours.
This has been true in the UK since the 1990s, but every time anyone points it out they are dismissed as racist. It's staggering that we still can't find a way to talk about this like adults.
That statement is nonsense. I have had the chance to witness many young people "work". Many of them are not willing to work hard. They think that they can afford a house by doing at best a mediocre job. Well that is not good enough.
I appreciate your perspective, but respectfully, the issue runs deeper than work ethic. The landscape has changed-professions that once offered stability are falling short, and housing costs are skyrocketing. It's not about expecting a house from a mediocre job; it's about how even hard work doesn't guarantee a break. Jobs that once promised a stable future and ownership now leave many just trying to survive, especially in what are now considered "mediocre" jobs. Let's face the real problem-rising costs and stagnant wages.@@maxhill9254
He was asked 2 times if the salaries were too low. He said the opposite, that he saw an increase overall. Case closed. He is lying believing that he is still living in the 90'
Just remember you need to have enough young people to have a consumer economy and to have a good economy, but if you most of your workforce is now retired your economy is going to collapse because there simply no consumption. Which mean a lot of young German workers will migrate again to the United States like they did in the 1840's looking for opportunities.
He did not lie when he said the "wages" are rising. He meant the wages as an economic concept and not salaries. The overall level of wages in the German economy as computed by economists and as a component of economy has been rising over the past year. You can refer to economic statistics published.
What are you talking about? You pick out one statement, and call him a liar. It's pretty odd, plus you're wrong. By the way, the nineties were some of the economically hardest times, as well as the early 2000's. Whatever you're talking about, you've got to clarify, otherwise it makes no sense.
@@Welgeldiguniekalias Yeah, after heavy reductions in demand and and creating surplus reserves did they reduce prices. Their economy isn't coming back anytime soon. Investors should not be looking into Germany for the forseeable future unless the country really show significant policy changes.
@@WelgeldiguniekaliasThat’s because lack of demand from industries leaving, not a good thing. BASF for example is moving most of its chemical operations to US.
Well, it's the same situation in the US and elsewhere: a glut of highly educated, university graduates in Arts and Humanities, who refuse to do "slave work", along with low-educated, drop outs. And a dearth of those with technically skilled trades in mechanics/machinery, electricity/electronics, carpentry, plumbing.
@@user-r8or-pko3dfg That is not true, the vast majority of majors in Europe are not in Arts or Humanities (unless you consider law a humanity) but rather in business, law, healthcare and engineering
Yes, I think we can all see where people of differing political views stand on the issues. I was glad to have the issues at the forefront without political finger-pointing.@@aaron.aaron.v.b.9448
@@jochen9367 lmao well none of that seems to be helping you, business in Europe has never been so stagnant outside of the depression. Should be focused on actually being productive instead of kneecapping every industry you have at any opportunity for green woke points
bro its not about people not having confidence in the economy. Its about the fact that no matter how much your wage rises, if the cost of living rises with then nothing changes
This is a concern but it's not as bad as many people make it out to be. What most people overlook is the fact, that even though cost of living increases, we own more goods than in earlier times and of more quality (phones, computers, cars, etc.) and use more services (education, holidays, etc.). Let's take housing for example. Yes, housing has become to expensive, but that's mostly because everyone wants to live in attractive places with public transport, high quality doctors and hospitals, parks, clubs, etc. Housing was previously cheaper because many things that cities nowadays offer were not available in earlier times. Of course that's not the whole story, there's clearly also a bubble going on, but I find this discussion often dishonest because often it is not highlighted what you actually get for your overpriced city center apartment. Housing far away from cities is nowadays still very cheap, it's just nobody wants to go there.
This. So much. Especially rent has gone up so much in the last few years. The pay raises aren't nearly enough. These "experts" always act like inflation is only affecting companies.
@@Neomadra Why do you think people move to the cities? Because the jobs are there!! I grew up in a rural area, in the 80s and early 90s we had serveral factories which employed a lot of people ... All these factories were moved to China in the late 90s and 00s. People lost their jobs. Many moved to cities for new jobs. The houses they built are now vacation homes for rich city dwellers. The houses which were sold for 50k in the 90s are now worth at least 300k. Its ridiculous.
@@Neomadra It's also not very useful to compare housing prices today with the standard of a few decades ago. After the war there was a lot of land available, people could easily find a place to build their own home. At the same time it was even politically encouraged to do so. Decades later, most of the attractive land and real estate (bound to great infrastructure) is already in the hands of families, which inherited it from their parents / grandparents, or in the hands of larger real estate firms. Then there is a lot of speculation going on in the market, artificially driving up the prices to absurd dimensions. I agree that our standards have risen tremendously since then, but still people should be able to find a decent housing without the fear of ending up poor.
Companies must be held accountable for the entire process of educating employees for the roles and careers they seek. It's merely a complaint about not being able to find someone with the specific skill they require at the moment. Then they suddenly decide they want another skill set. Workers are just laid off and replaced. However, the burden of developing the "right kinda employee" falls on the entire society.
That is an insane take. The role of educating people is on the education sector. Companies are not in the business of educating people. They don't have the resources to do that. Maybe a few large companies, but most don't.
The issue is being competitive. Many countries around the world offer skilled candidates. If German companies are forced to go through the expenditure and time of educating employees for every position, the competitivity of the German companies will continue to go south. Rewarding people for not working or not learning is a sure way of going down the drain.
@@hdaviator9181 So what did companies do before school was a thing, they took people in and trained them for the job they wanted them to do. It isn't schools job to teach someone out there everything they'll need to know for each specific job. Companies spent more time training their employees in the past to do the job right, but now they expect to hire people out the gate with all the degrees and 10 years experience. Trades today still train their workers, though not everywhere. I do remember coming out of high school. many trades in my home state were looking for already trained tradesmen instead of doing it themselves. Moved to another district, more prosperous. the trades would take people off the street and train them from the ground up, instead of waiting for the community college to pump out some fresh graduates. So maybe, companies should get back into educating their own workforce.
@@hdaviator9181 yeah right you ain't getting any practical experience from the education sector. they're demanding a lot of practical experience with a lot of technologies and tools from a junior who just graduated from university. where tf do you get a 5+ years experience of XY if you've never got a job to teach you that.
@@hdaviator9181It's not an insane take at all. They take advantage of skilled workers without ever contributing to their development. They basically get freely educated people. If they aren't going to contribute funds in educating them, then they should pay far higher salaries than they do currently.
more factories moves to the USA, rather than moving to China. Who is benefiting from the war and high USD interest rate? not China, it is the USA. Germany needs to educate themselves.
Instead of manufacturing you have a service sector now.Manifacturng is for low skill labour ,if you can't thrive in your current environment you're not of the competent workforce.
Chooses to laugh at Trump when he called out their dependency on Russian oil and gas. Chooses to openly stand by Ukraine and fund them billions instead of trying to ne more nuanced in their approach. Chooses to look the other way when its obvious the US military blew up the pipelines providing them with Russian gas Chooses to not fully join the US/UK operation to fight the Houthi rebels, knowing that blocking the entry to the Red Sea will cause a direct hit on their economy and the rest of the Eurozone. At this point, Germany seems to be getting ready to unalive itself for funsies.
@@sportsonwheelsshe was talking about sanctions on Russia. there is actually one pipeline out of the 4 that didnt blow up. but germany dont want to use it.
People can be poor and still experience economic growth, the reality if Germans don't replace themselves. No kids = no workers. It's only going to get worse.
That's not how economics work. This is such a typical and nonsensical statement. The split is increasing, but by no means are people getting poorer. All graphs are pointing up. It's only the positive gap that's increasing. Also, arguing that higher salaries would solve this just again shows your lack of economic understanding. Salary is the product of the ratio between supply and demand. Salary (price) follows those two crucial components. If you want to demand a higher salary, apply for jobs where supply is low and demand is high. It's not rocket science. Aslo, why do you think net wages are not increasing? Because companies cannot afford it. Inflation (which is a mere symptom of awful fiscal policies) is eating up any potential for higher earnings etc.
After living in Germany for 10 years with my family, I have decided to leave. Here are a few reasons why. The German tax system seems particularly unfair. It appears designed to discourage women from working, effectively nudging them towards being housewives. For those desiring to start a family, the challenges are manifold. Finding childcare facilities, like 'kitas,' is incredibly tough. Moreover, securing a larger home without exhausting one's entire salary is a formidable task. There's also a discouraging aspect to professional advancement. The tax structure seems to become increasingly punitive with higher earnings. This can dampen one's motivation for career growth. The education system, in my view, leaves much to be desired. It feels antiquated, seemingly more focused on stifling creativity than nurturing it, and tends towards producing conformity rather than encouraging individuality. As for healthcare, it's a mixed bag. Despite paying substantial amounts for medical services, finding timely and effective care can be a struggle. This gives the impression of a healthcare system that's strained, if not outright collapsed. The technological infrastructure lags behind other developed countries. Internet connectivity is often subpar, and there's a heavy reliance on paperwork in many aspects of life. The banking system feels outdated, and the bureaucracy is notoriously cumbersome and widespread. Furthermore, Germany's aging population and the current environment do not make it an attractive destination for skilled foreigners. This situation could lead to broader societal and economic challenges.
Good reasons. The tax burden and hurdles are insane. I am German, but also made the decision to leave, and build my company elsewhere. And to be honest, that was a life-changing decision in many - positive aspects. There is really not much reason to stay, if the location of your work does not matter anyway. The social security systems are also not a good deal: If you would just put everything you need to pay for your pension etc. and put it into index funds yourself, you would be far better off. If you have an average German salary, you will not be able to survive from what you will get at pension age. And this is today, I think in 25 years people will get nothing anyway. But average people do not have the extra income to invest a lot beside that. The system really feels like it is designed, so people have enough to get by on a daily basis, but to siphon everything else away. But if you really need the system, you will also realize that there is not that much solidarity, even if you paid for it, and never expected anything in return so far. Additionally, self-employed people are systematically disadvantaged in many cases. You get the feeling, the lawmaker does not really like people who are not servants of the state, or employees. Hundreds of thousands of Germans are leaving Germany on a yearly basis to relocate permanently. A significant part highly skilled individuals at their prime in life. No one is talking about that- I always wonder why. So they basically created an incentive structure to drive highly skilled individuals out, and replacing them with mostly unskilled ones, when it comes to the labor market. What really fuels this process now, is that it is far easier to work from anywhere in the world remotely. And additionally, as already stated above, Germany is not the destination of choice for most highly skilled immigrants at working age to compensate for that outflow. And the latest PR with what is happening will not make it more attractive....
Excellent comment (and the previous reply too). I have lived 15 years in Germany, became German citizen, but then decide to leave the country. My experience matches almost 100% with yours. The tax system is so appalling. I don't understand why someone earning more than 70K EUR annually would like to live and pay taxes in Germany.
May I ask where you going? I'm genuinely looking for countries where you can get visa and that's actually better than Germany. Looking at all factors I see no country that's clearly better than Germany. Maybe I'm not researching hard enough 😅
@@Neomadra Well, I think no Country is perfect in every aspect, and it highly depends on your needs and setup. I have been living in Cyprus (EU Part) for almost 3 years now, and like it very much. I like the climate, it is a highly developed economy, and that it is quite international, and English is the second official language here. I think it is a great pick, if you are self-employed, or have a business, since for immigrants, there is no capital gains tax, and the corporate tax is 12,5% flat. The health system / mandatory insurance is also good, and very affordable. Means you do not need an additional private insurance to cover all basics. But even if you also add a full private insurance, you are still paying 50% less with both than with the German GKV. If you are an employee, the conditions are still better than in Germany, but also not cheap, means a bit less attractive from a tax & fees point of view. Also the the salary level on the island itself is relatively low, if you are not working in the tech or banking sector. In most places rents are still also significantly lower, than in German metropol regions, but the cost of living is kind of comparable to Germany, likely because many individuals with a high spending power and because it is an island.
Indeed. Real wage growth has been negative for all of 2022 and 2023, with negative growth of up to -5.4%. Real wages have grown slightly in parts of 2023, but only by up to 0.6%.
Being dependent on expensive gas and oil shipped from the other side of the globe US, because responsible politicians in Washington demand that. I am not surprised at all 😨
@@deep.space.12 Taxes have nothing to do with that. Without taxes, living costs would be vastly higher for the majority of people, due to having to pay for private healthcare, tolls on literally every road, etc etc.
Nah, stagnation. This is a cycle. The growth is in Asia. It is the Asian century. As long as there's no WW3 and China is not deceived by the US to act on war, this century will be Asian.
The UK was uncompetitive, beacause of the contribution North sea oil made on the Exchange rate,Google Dutch Disease,as well as overmanning and unrealistic wage demands made on British industry by the Unions.
When they choose to block themselves from enough cheap green gas and oil directly from pipelines for US interest, and now being dependent on high prices for not enough gas and oil shipped from the other side of the globe US 😞 It's not surprised that it's impossible to keep their wealth 😢
As long as the German society and German industries refuse to adjust in the new era, their society will keep dying, their economy will keep declining. 2024 in IT sector they still require German language mandatory, a lot of university credentials in an industry where after 5 years max your knowledge is outdated, moreover they cannot compete with their rich neighbours in net salaries. Germany and their industries operate still like we live in the 1980s and good luck with that
well the language can be learned but the number of companies that don't want to train new graduates is insane. he said that a lot of companies are in need of workers but those same companies are asking for a lot for minimum pay. "we need a junior developer with 5 years experience in X, Y and Z" yeah good luck finding that
@@medo_0x00”Deutsche Sprache, schwere Sprache” as the Germans say. People also like to forget that Germans are not friendly to foreigners (or each other), which decreases incentives to want to learn the language.
@@ehanoldaccount5893 compared to many other languages, german is not too hard. I have already learned it up to C1 level and in my experience, germans were never rude or unfriendly to me. Especially old people usually are the kindest. Well Germans are still hard to get along with because of their nature of not wanting to talk to anyone or being talked to but that doesn't bother me much because i myself am an introvert.
Would like to move and work there in the future for a few years, but wonder if my lack in formal education will impact my ability to get a job despite years of experience in the IT Security industry. I’ve seen this mentioned many times before that German companies look to University degrees for proof of knowledge when most of my studies completed 20 years ago have very little relevance today.
@@dog_knight yes it's true. Most companies look for a formal university degree. You might be lucky and get a job in IT without a degree but chances are slim. There's also Ausbildung or dual Studium where you'll study and work at the same time and get paid for the job. But since many people apply for these kinds of jobs in IT, companies would rather hire someone who's already in Germany because they don't want to go through the trouble of waiting for you to get a visa and stuff...
@@patrickperkins1189 If you don't think that a job is not worth your time and energy, don't work there. I'm not someone who just complains. Learn how the world works and act on what is right. Life is short.
@@patrickperkins1189 Then don't work (where you're at). I don't care if you complain and do nothing about it - if you do something about it, all power to you. I'm working for myself by myself. Do what makes you and your family happy. Don't work in a job that is meaningless to you.
if Germany is in decline with its economy, then the entire europe economies are collapsing. Germany economy is the best among all EU nation's economies.
it was Germany who started the love affair with Russia as well. Now they are trying hard to play the role of the biggest supporters of Ukraine but the fact is that Gremay played a main role in helping Russia with lucrative businesses. Schröder was the most important lobbyist of Gazprom in the EU.
Taxes on overtime work is there to get as many people as possible into the workforce and guarantee a life outside work. Family time. Unions have fought hard for that benefit.
@@oddvardmyrnes9040i do see your point, but I don’t need the state to engineer my life and how much time I spend with my family and outside of work. The reasons maybe noble but people shouldn’t be punished for working more or wanting to make more so that they can have better social mobility
@@moDLuffy .. True. The balance of this metric is tricky, like all of them are. I will say that the system is in balance right now, but I could be wrong. I tend to believe in a model of bonuses & profit sharing. I subscribe to an unescapable rule, work must be profitable. Just finding the balance for the individual & the common good.
Mid level software engineer makes about $40k in Germany. $200k in the US. A nurse in Germany about $35k, in the US $150k. You‘d be dumb if you are skilled labor to move to Germany.
Maybe you want to live in a house that won´t be blown away by a wind. Maybe you want to eat healthy food instead the sweet rubbish they sell you in ´Merica. Maybe you want to vote for a third party. Maybe you belief creationism should stay in church. Maybe you want your children to be able to walk to school. Maybe you want to live where the police is friendly. Maybe deep inside you are concernd about all the weapons people own. Maybe you are jealous when its about workers rights. Maybe you are curious if there is live on other continents. and so on Don´t take me too serious ;-) But to be honest, I know of noone who is punished the harder he works. There are high taxes in Germany, true, but you get what you pay for.
What I found frustrating is, that everyone claims they know the reason because they correlate developments with recent events. But it is just unknowable and historically its just natural to have waves of up and downturns.
Labor shortage? I have a European master in Nuclear fusion with two years of experience, and I've been unable to find work anywhere in Europe. Is so much so, that 200+ applications later I just gave up. Companies are not willing to bring someone and sponsor them if they don't have 15+ years experience or if you're not a doctor or nurse
Stop paying money in Dols... My tenant, not working, living with job centre with 6 children.... Able to afford duplex apartment for free. I with good salary, living in old 80 m2 appartment
Economies are cyclical. Especially in an oversaturated world, constant growth is an illusion and Germany has been doing exceptionally well even when others did not for quite a long time. A cooling off phase was overdue, and it will pass as it has always done. Why is everything blown out of proportion these days?
Finally someone with common sense I guess we Germans gotten a bit too used to the good times, hard times will be overcome and especially this one. Humans are the most adaptable and resilient species, we will survive it.
Is it a general decline or just part of an economic cycle? How many times has the US been counted out economically? I remember back in the 70s as the US struggled through stagflation the "experts" were predicting that Japan and maybe Germany would surpass the US economically by the year 2000. The "experts" new favorite is China but now that is seeming more unlikely by the day. In a free economy all economics is cyclic with ups and downs and it really does not matter which party is in charge. So when times are good you prepare for the bad. In an unfree economy you don't have the same ups and downs it is just down.
Sure there are cycles but the government still has to act and put in place policies that can allow an upswing. It doesn't just happen automatically, in that sense the government plays a major role. The effects aren't felt immediately but over a number of years it becomes evident.
Can Russia be blamed for this as well? Germany has inflicted severe damage upon itself, not just on a minor scale, but to a catastrophic extent, all in service of furthering American interests. This incident unmistakably illustrates the detrimental consequences of being subservient to the United States.
Very embarrassing to not mention the huge raise in profits in companys and growing payout to investors. That money could be used for investing in the company and educating employees but it's not attractive to the shareholders
Gee, not having abundant cheap energy caused problems? Who would think that shutting down your nuclear power plants and scrambling to burn coal and bring in LNG at much higher cost would impact all the industry.
come on man. Nuclear Energy is most expensive. Imagine they used atomic energy back in the stone age. The waste whould still cause problems today. It seems that there is no way to communicate beyond the ages. At least I don´t know any stoneagian Language. So you even can´t give future humans any warning about the danger radioactive waste could be.
"It is surprising that rising wages are not driving consumption." Does this "economics expert" know what inflation means? Rent, energy, heating, food, ...everything went up so much in the last few years. Yes, i get paid more now, but because the essentials are so much more expensive, i have less money available at the end of the month.
Europe will never fall. Switzerland, Sweden, the United States, the United Kingdom and Singapore are the world’s most innovative economies in 2023, according to WIPO’s Global Innovation Index (GII), as a group of middle-income economies have emerged over the past decade as the fastest climbers of the ranking.
How is this country supposed to fix its economy? All sectors we used to lead in are systematically being ruined and destroyed. Education is bad. Taxes are high. Entrepreneurship low. Investment is low. Infrastructure is bad. Digitization is waaaaaaaaaaaaaay behind. Labor force gets older and more lazy and less educated. Bureaucracy is reaching insane levels. Tax burdens on private citizens and corporations is ridiculously high. Smart people are leaving while uneducated people are imported. The entire social care sector is turning on itself. Pension scheme is falling apart. Healthcare system is falling apart... Glad I'm already gone.
@@zs5002 i think you are underestimating Germans. So all countries around are funding their military just find , and Germany (the world's 4th GDP ) wont be able to? you are joking man.
The bureaucratic nightmare that is Germany prevented us from opening a business there. It's simply not worth the headaches. There are plenty of other EU countries that are far more attractive. We've decided on Norway, France and Switzerland (yes I know, not EU). Finding workers was not a concern.
He really thinks increasing work hours per person is free for the government?! So healthcare for overworked people is free? Child and elderly care for people who don’t have time to take care of their kids/parents/etc. is free? Making up for fewer volunteers in all kinds of social sectors who can do less due to higher working hours is free? As a fellow economist, I’m so tired of this short term thinking!
"Germany has some of the lowest wholesale electricity prices in Europe and some of the highest retail prices, due to its energy policies" Source - World Nuclear Association.
Gas prices are back down to 2015 prices so I can't be just that. They did lose a lot of the Russian market due to companies pulling out. There's probably multiple reasons for it.
Germany is experiencing the second part of the "win" in its win-win economic relations with China. The first part was when China got the jobs, associated tax revenues, and techs.
@@LaVictoireEstLaVietrue. Tbh UK isn't doing any better. UK has stagnated for over a decade and has barely seen any real growth. Japan didnt benefit either by being friends with the US.
Germany made a lot of money in China Was basically free lunch as the speaker mentions But china innovated when Germany didn't (e.g. EVs) so now Germany is paying the price
You have enough workers. Shortage is just a enthusiasm for not wanting to pay workers properly or invest in capital to make them more productive Lack of cheap energy is the problem.
„How did we get into this mess?“ Simply! „We“ (as in - the elected officials) decided to buy social peace for everyone: keep wages low, taxes high, and pump all the extra money into a welfare state. So that now people can enjoy the idiocy called „Bürgergeld“ (tied in with Schulgeld, Kindergeld, Wohngeld and Whateveryouwishforgeld). Luckily, some of us left the country ages ago to study and live abroad, where they thrived and made huge progress. With three M.A. and one M.S. I managed to save in five years in Switzerland what I would’ve earned in three years in Germany. And I pay more rent in Switzerland than I did in Germany. Plus, I enjoy six weeks of paid vacation every year and can afford to travel around the globe. Germany is a place for those who don’t expect much, don’t need much, don’t want much, and above all - don’t want to work, because Father Welfare takes care of the elementary needs of a family of eight.
Not only Germany but all of Europe faces the problem of lack of innovation, the creation of new businesses or unicorns, bureaucracy, high regulation from the European Central Bank, and the absence of AI development. How can they regulate AI without having any new AI-focused companies in Europe?
How much of German industry has moved to the US so as to take advantage of lower energy costs, tax breaks and the subsidies associated with Biden's "Inflation Reduction Act" ?
Mr Füst hits the nail on the head:the tax and transfer system urgently needs reforming. The system as it stands punishes you if work more. It's socialism gone mad.
Fun fact, the idea of govenment debt having a negative inpact on economic growth was based on a paper that showed negative corrilation between debt and economic growth, however the resault was based on an excel error. The paper was later refuted and when the error was corrected showed that there was in fact a positive correlation between debt and economic growth. So in short the zero debt policy is not helping the german economy, its actively hurting it.
The way Mr. Clemens Fuest explains and dissect the problems in a very systematic way that shows a good related knowledge background. I think the German government should be less talking politicians and more experts in the matters.
Clemens Fuest's forehead is the most German forehead I have ever seen. One could tell he was German from 1 kilometre away, without having to hear his accent.
Germany needed digitization in the 00s. German bureaucracy has stalled since the 80s and it will take a lot of painful short-term decisions to get back to an acceptable efficiency
There is NEVER a shortage of labour, absolute BS. The requirements and wages are just not adequate, skill shortage? Make apprenticeship program, retraining, upskill, but NO! Nobody wants to invest anything...
I predicted this nearly two years ago and was abused by people who said I had no idea what I was talking about. Well guys - time to say sorry. And let me predict a bit further: This isn’t going to end. Germany had an entire economy based upon two competitive advantages - cheap energy and a protected market (the EU). The EU is now signing free trade agreements with everyone and the cheap energy has gone for ever. Germany will have to become a service economy, just as the UK did in the 70s and 80s, and that is incredibly painful. Steelworkers become cooks, car workers become waiters. Germany will continue to decline for at least a decade, and will never bounce back to what it used to be.
The common problem in European economic failure is bureaucratic delays and politicians draining companies and individuals via taxation and then trying to force struggling businesses to buy new equipment and constant regulatory changes for agriculture.
Learn English, focus on service and innovation. Accept digitalisation Reduce redtape. And German wages are super low even in high tech sector. Senior IT engineer earns 60-70k in Us 140-170k
Workers aren’t working enough he says… In portugal currently 1 worker is doing the work of 10, while unemployment is very high and burnout rates are also very high so don’t go through the “workers not working enough hours” route, it only leads to a sick and poor society
USA freed and then protected western Europe for decades. Maybe it's time to take our own security, freedom and sovereignty a bit more seriously. Maybe Germany along with other European nations can find its sense of self-preservation and focus on the big issues, rather than pronouns, diversity and other made up problems. Oh, and maybe importing people essentially out of the bronze age into a highly developed western liberal society was not our best idea. Just a thought.
The USA infiltration in Europe is a big problem because European people are importing usa problems thru the internet that were never a problem in Europe, also the eu shouldn’t be the usa government pawn and don’t complain with the 2% gdp argument because the usa benefits from been a world military power
Because Gerhardt Schroder and the Greens for closing Nuclear Power Plants and making Germany a Vassal state of Russia and he got rewarded for that. You may research now where Gerhard Schroeder is.
Would be interesting to hear about his view of AI and robots regarding rhe labour shortage as well as people maybe no longer able work as long as before after a certain age.
I know people who overworking every day. Everything above 80 hours(on your balance) is payed out. But at around 40% of TAX. The people collect their 80 hours and then just use them to stay at home every Friday , or working 2/3 hours less at some days. It doesn’t pays to make overhours to make money, it’s better to stay home and do your private things.
Unless Germany innovates a new energy source, or returns to Russian energy which is unlikely then Germany will continue to buy expensive US oil/gas with its long supply chain and therefore expensive energy costs. Whilst this policy persists, Germany should settle-in to this new reality that will slowly but surely decimate its poorest, its industrial capacity and its national wealth. Congrats Olaf!
The US sabotaged the Nordstream pipeline, causing inflation, and yet no word of protest from Germany, and they even fully support the US external policy! What a bunch of spineless wimps this government is!
Absolutely horrible what is happening to the farmers in Germany. Germany has the same problems the rest of the world has. Government corruption, and overspending.
😆😆😆 If you do as the Americans say... ->your economy is destroyed, ->your standard of living drops, ->you are joining a war you don't need to fight, ->against a country who really isn't your enemy. --Colonel Douglas Macgregor.
the US runs an $80 billion trade deficit with Germany -- in fact the German trade surplus with the US almost exactly cancels out Germany's equally huge trade deficit with China. So ask yourself, who is really the one eating Germany's lunch.
"You CAN work more" quickly translates to: "you HAVE TO work more to keep up". Especially in cities where low wage jobs barely make enough to pay the rent and insurances. There is no mobility wage-wise in some jobs, and it cannot be the solution to ban "poor" from the cities, as then there will be the missing work force for for instance health and child care workers. You cannot optimise certain jobs, that sometimes need to be taken due to bad education, knowledge of the language or family situation. Also: "the problem with the debt brake is that it brakes ... but it works" ... Brilliant...!
