Germany racked up one economic success after another for most of this century. But the loss of Russian natural gas due to the war in Ukraine has dealt a severe blow to its industry through higher energy costs.

For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports.

Jobs were plentiful, the government’s financial coffers grew as other European countries drowned in debt, and books were written about what other countries could learn from Germany.

No longer. Now, Germany is the world’s worst-performing major developed economy, with both the International Monetary Fund and European Union expecting it to shrink this year.

  • @moitoi@feddit.deEnglish
    18•1 year ago

    The first dominion of the fall of the neoliberalism. Germany has multiple major flaw.

    It didn’t invest in infrastructure like railways. Poor workers use public transportation what makes good conditions rare and therefore reduce the consumptions. The incomes are too low in the country. People can’t afford a basic live and can’t consume.

    Budgetary rigor. Politics for years, we are looking at you Angela, wanted to spend the less amount of money they could. All of this ended with a lack of money in the system. This also is one factor to the rise of the far-right.

    Tax cuts for companies and corporations created wealth for the capital. The capital grew what doesn’t help the economy.