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constantcrying 2 hours ago

At this point it seems inevitable that most of Europe is going to experience severe economic struggles.

Manufacturing in Germany is dying, making anything which is cost competitive is impossible and the measures trying to fix it are miniscule compared to the magnitude of the problem.

mertbio 2 hours ago | parent | next [-]

Germany doesn’t compete in cheap manufacturing, they compete in highly precise manufacturing. There are bunch of things that are only manufactured in Germany. You don’t hear those companies that much because they are not public but they are well known by the people who work in specific industries. When you combine them, they are way bigger than the German companies you hear everyday which are laying off people or closing factories.

For some reason, every time Europe is mentioned, there is always a comment about how Europe is struggling but when you look at the quality of life, happiness or life expectancy, all those numbers are higher than the US. People should stop obsessing with GDP.

fransje26 an hour ago | parent | next [-]

> There are bunch of things that are only manufactured in Germany. You don’t hear those companies that much because they are not public but they are well known by the people who work in specific industries.

There is small town of 35,000 inhabitants around the corner from where I live. It produces 50% of the world's surgical equipment, from a base of around 600 companies.

There are good reasons why "made in Germany" is not as dead as some people want us to believe.

jiggawatts 40 minutes ago | parent [-]

A common talking point is that the number of people working in engineering is decreasing over time. The implication is that "we are making less", but the real story is that "we are making things more efficiently".

A case in point is agriculture in Australia, where a crop farm might be as big as a thousand acres, whereas its common in SEA for a family to have just one or two acres. The huge scale is enabled by multi-million dollar tractors, drones, huge irrigation systems, etc...

German manufacturing is the same.

bryanlarsen 26 minutes ago | parent [-]

Google says that the average farm size in Australia is 10,000 acres. I didn't think they were significantly smaller than the farms in Saskatchewan Canada which average 2,000 acres.

noobermin 2 hours ago | parent | prev | next [-]

certain people want the rest of the world to become like china and india, top down sweatshops so they can squeeze just a little more dollar out of people

constantcrying 2 hours ago | parent | prev | next [-]

I know many of these companies and I have even been invited to some of them.

I am not some American desperate to insult Europeans. I am a German, I work in the German industry, my livelihood depends on this economy.

>When you combine them, they are way bigger than the German companies you hear everyday which are laying off people or closing factories.

This plainly is not true. Even the "small champions" are struggling, because they are mostly suppliers to the large companies. A very significant part of the "Mittelstand" exists as specialized suppliers to the German car, Aerospace and Railway companies. If those are struggling, then the suppliers feel the pain just as much.

locallost 13 minutes ago | parent [-]

I am not German, but I live in Germany and things can be debated in detail and from various viewpoints. Things are rarely black and white.

But I am getting kind of tired of the canned half informed opinions like "outrageous energy prices" usually although not always followed by "closing cheap nuclear will do that for you". Energy like natural gas is still elevated compared to 2021 but it's nowhere near outrageous anymore. Electricity as an end consumer I can now get cheaper than in e.g. France, and they just announced dirt cheap industry prices etc. So things can be complex, what was the case in 2023 might not be in 2025. Things change but it takes too much effort to question if what was true two years ago is still really true, so we are stuck with these lazy views.

AlexandrB 2 hours ago | parent | prev | next [-]

GDP is a leading indicator. You can't fund European-style transit and social services forever if there's less money coming in.

mk89 an hour ago | parent [-]

Which is why is not a good indicator...

Government overspending, for example, increases the GDP.

gruez 6 minutes ago | parent [-]

No, GDP is a necessary but not sufficient condition for lavish government services. Yes, there are ways to juice GDP figures without actually having a functioning economy that can support lavish government services, but if your GDP is flat or declining, there's no way you'll be able to continue affording lavish government services.

trueismywork an hour ago | parent | prev [-]

Even those companies are struggling nowadays with quality of goods made in China improving extremely fast.

> For some reason, every time Europe is mentioned, there is always a comment about how Europe is struggling but when you look at the quality of life, happiness or life expectancy, all those numbers are higher than the US.

But quality of life in Europe is decreasing fast. Pension is becoming unsustainable. Govts are going bankrupt. Infrastructure is collapsing. People correctly see that Europe as a whole will fall behind in some years unless things change

amarcheschi 34 minutes ago | parent | next [-]

Govts are going bankrupt

No they aren't

Infrastructure is collapsing

No it isn't

gruez 22 minutes ago | parent [-]

>Govts are going bankrupt

>No they aren't

They might not be "going bankrupt" in the sense that they're imminently going to default on their debts, but debts have reached unprecedented levels[1], and show no signs of stopping. If you know someone who's racking up serious amounts of debt on sports gambling or whatever, it's safe to characterize that as "going bankrupt", even if you think they'll be able to make the minimum payments on their credit cards for the next few months.

[1] https://www.economist.com/content-assets/images/20251018_SRC..., https://www.economist.com/special-report/2025/10/13/across-t...

croes 40 minutes ago | parent | prev [-]

And millionaires and billionaires become more and more.

The problem isn’t money but the distribution.

Volkswagen payed 4.5 billion in dividends in 2024

gruez 33 minutes ago | parent [-]

>Volkswagen payed 4.5 billion in dividends in 2024

How does that compare to Germany's deficit? Or their impending pension obligations?

jsheard an hour ago | parent | prev | next [-]

As the article goes into, Cherry had their lunch eaten because they barely made any attempt to innovate for decades. They coasted on their patents until they expired and then they were eaten alive, not just by cheaper alternatives, but by superior quality alternatives too. They were doomed regardless of where they were based.

constantcrying 8 minutes ago | parent [-]

>They were doomed regardless of where they were based.

This was not inevitable. You even mentioned the reason it happened.

Cherry isn't a one of here. This exact same story, successful product -> limited innovation -> bad clones from China -> superior "clones" from Chinese with actual innovations, keeps repeating itself in Germany.

Germany is objectively not a good environment for manufacturing. Especially when it comes to manufacturing anything cost sensitive, but these companies obviously have themselves to blame. The PC Hardware market has drastically evolved and if Cheery had actually wanted to, they could have been at the forefront of that. But they haven't.

dinkblam 2 hours ago | parent | prev | next [-]

> Manufacturing in Germany is dying

no surprise given the high taxes, extreme energy prices, massive bureaucracy, ridiculous regulations, work-hating employees and extremely business-hostile culture

cdmckay 2 hours ago | parent [-]

I think it’s mostly the loss of Nord Stream

mx7zysuj4xew an hour ago | parent | next [-]

This is it.

A lot of people seem to be pushing some weird "anti-environmental" when the simple reality is that all energy costs

I cannot understate the impact of Russian Energy being cut off. Right now we're paying roughly twice as much than we used to for compressed natural gas brought via tanker ships from the us. I genuinely believe that the war in Ukraine is mostly about energy dependence on Russia and Ukraine losing its transfer fees through their old pipelines

Phil_Latio 2 hours ago | parent | prev | next [-]

It's just one piece of the puzzle. The cost for Co2 certificates is a more major reason. Starting 2027, hedge funds can buy these certificates which will be the nail in the coffin. It's basically Bitcoin on steroids with the difference that people buy Bitcoin out of free will, while the industry is forced to buy these certificates which get more scarce over time.

aurelwu an hour ago | parent [-]

Anyone can already buy those certificates - but as its an artificial market where rules can be changed politically it's actually way more resistant to such things than regular markets, so if those hedge funds feel like they want to lose some billions they can certainly do that. There is a large enough stockpile of certificates + leeway when to submit them that any short term market squeeze will just be dealt with politically.

Phil_Latio an hour ago | parent [-]

This argument, namely that politics can lower the price (by emitting extra certificates) when it gets too high, contradicts the whole reason for the mechanism in the first place: They claim a free market can find the right price better than politicians. But then they interfer anyway?

The price will rise much larger than a dumb, fixed increase-schedule would. Because the "market" wants it's profit.

AlexandrB 2 hours ago | parent | prev [-]

It's the loss of Germany's last nuclear plants in 2023[1]. For a country supposedly aiming for net zero the shutdown of their nuclear infrastructure was a huge "own goal". Really sad to see.

[1] https://www.cnn.com/2023/04/15/europe/germany-nuclear-phase-...

cenamus an hour ago | parent [-]

Strange that the share pf renewables has beem steadily increasing

jnurmine an hour ago | parent | prev | next [-]

Cost is not everything. Quality matters a lot.

If things are of higher quality, higher cost is acceptable to many.

As a trivial example, talking about a ca. 5 EUR purchase here, I bought a German-made pencil sharpener (Möbius-Ruppert nr. 0603 "Vertex").

It's basically a small metallic block (brass) with two holes with blades attached. It is surprisingly heavy and while it may sound strange, the sharpening result is simply excellent. (I bought some Japanese-made pencils to pair with it)

Chinese sharpeners can be had for under 0.5 EUR at best, they can be very cheap.

However, I had Chinese sharpeners and they actually were the reason I ended up buying a German one. Unless I lose the German sharpener, I will never need to buy another.

mzhaase an hour ago | parent | next [-]

Yeah well there are now plenty of Chinese designed products with quality as good or better than what you get in Europe: roborock, dji, bambu labs. The old Chinese = bad quality is no longer true.

hasperdi 23 minutes ago | parent | prev [-]

One thing that the Chinese are really good at is cost innovation, reducing costs as many ways possible to make their products affordable for the majority. Their aim for good enough quality.

I bet the sales ratio of the Chinese vs the German sharpeners exceed 20:1

pfannkuchen 2 hours ago | parent | prev | next [-]

Just stop trading manufactured products with Asia.

Their people are still transitioning from agrarian hardship to urban factory life, and there seems to be a zeal that comes with this transition, a willingness to work hard for what here today would be considered little.

Good for them. But in Europe we had this transition already and we became disillusioned with the lifestyle tradeoffs.

Having our people do nothing productive while all of our life objects are made by others is not sustainable and it is awful for the morale of our peoples. It needs to be stopped.

dinkblam 2 hours ago | parent | next [-]

> It needs to be stopped.

forcing germans to buy everything at 10 times of what it costs now is not the way to rescue the country

pfannkuchen 2 hours ago | parent [-]

Can you please think through what would happen a bit further? What you say here is a first order analysis on a very short time scale. It does not capture the end state of such a change. The acceptable transition period for a change depends on the severity of the problem the change is targeting, and in this case here the problem is quite severe, so our acceptable transition period should at least be measured in half decades, not weeks.

kragen 2 hours ago | parent | next [-]

No, we've been trying it here in Argentina for the last 75 years.

When we started, we were one of the richest countries in the world.

The end state is worse than you can possibly imagine.

It's not the way to rescue the country.

twodave an hour ago | parent | prev | next [-]

The harsh reality is that the world as it is depends on what amounts to slave labor, and that is priced into (or out of, rather) the goods that are imported. The mental and economic gymnastics involved in justifying it or pretending otherwise are just window dressing.

chasil 2 hours ago | parent | prev [-]

How is Apple not a forbidden product after this wall comes down?

Perhaps you can limit the allowed manufactured units to India, but the U.S. also wants those.

ReptileMan 41 minutes ago | parent | prev [-]

>Their people are still transitioning from agrarian hardship to urban factory life, and there seems to be a zeal that comes with this transition, a willingness to work hard for what here today would be considered little.

You don't find hordes of Chinese peasants in their dark factories.

Do you think that JLCPCB offer such prices because they have 2000000 lowly paid machinists drilling the pcb holes manually? China invests in all kinds of automation like crazy

theandrewbailey an hour ago | parent | prev [-]

Deindustrialization isn't fun. Don't worry, some of us have been down that road.

Sincerely, the American Rust Belt