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constantcrying an hour ago

I did not even mention energy prices in my post. But it is a basic truth that high energy prices reduce the competitiveness of industry.

>and they just announced dirt cheap industry prices

Any person who thinks that this is any more than a figleaf lacks basic economic understanding. Where does the German government get money? From German industry. The industry price is a tax break.

But you are also right, just continuously talking about the price of energy is another way to avoid talking about the structural issues. Lack of cost competitiveness does not just come from differences in the price of electricity.

The hard truth is that the Chinese are very good at manufacturing. Even for high quality products. For decades they have only gotten better and have taken over more and more industries, they did this by being cheaper and better, while also innovating. The future of the German industry depends on rising to that challenge and actually being able to stay better than the Chinese.

If you work somewhere in German industry, a phrase you are going to hear is "so haben wir das immer schon gemacht" (this is the way we have always done this) and you will find an institutional unwillingness, from the management down to the staff, to engage in radical change, to try new things and to embrace new technologies. This protects German industry from fads, which quickly fade, but it also means that it is always at risk of drastically falling behind when it comes to genuinely superior ways of working.

mertbio an hour ago | parent | next [-]

> Where does the German government get money? From German industry.

This is not true. Two biggest income source for the government is sales tax and income tax.

https://www.bundeshaushalt.de/DE/Bundeshaushalt-digital/bund...

locallost 36 minutes ago | parent | prev [-]

You didn't mention it, but it was mentioned somewhere else and is a typical response. My main point is that these things are complex and can't really be reduced to a simple sentence. As for the electricity itself, most countries have cheap electricity because of subsidies. The issue with German "high" electricity price was never that it was truly high, it was that the actual cost was on the actual bill. This is typically not true.

I don't work in the industry, but I agree with this assessment. I don't want to reduce all Germans to a stereotype, but I agree there is just a lot of inertia and being successful because it used to be successful. Like e.g. Intel, and it will eventually run out. The whole Europe reminds of the tired part in that wired vs tired meme. People live a good life, which is good, but it makes them want to strive to preserve that. So no wonder they trust their fortunes to someone like Friedrich Merz, a bean counter, whose biggest accomplishment in life was that he submitted a tax report on a "Bierdeckel". That's not the way to go forward.

One of the last worldwide relevant things coming out of Germany was the Energiewende, yet many people outright reject it because it interferes with their comfort and the way it used to be done. But in reality either by luck or genius, completely nailed it and was the first in creating a completely new world. But then nothing.