To say it started on one day, or one month, or one year...would be wrong....it started with stages.
Jobs lost in coal/steel....1980s? Yep....roughly 300,000 in the Ruhr Valley area over a decade.
1990s? There was reunification shock & Euro preparation.
2000s? Hartz IV welfare got introduced, with wages stagnant for the whole decade.
2010s? Nuclear power halted.....Russian sanctions hurt (2014)....dieselgate occurred....production peaks occurred.
So....Germany is facing significant signs of deindustrialization, often described as "escalating" or "creeping" by economists and industry leaders.
Germany's industrial sector has been shrinking due to a combination of energy crises, policy missteps, global competition, and demographic challenges.
It's BS if you think it just started in the past five years (with Covid).
Investment flight part of the story? Yes.
Job losses are a monthly topic now....with companies like Volkswagen, BASF, Bosch's BSH unit, and Lanxess pursuing cuts.
Economic shrinkage? GDP growth is the lowest in the EU post-pandemic, with recession risks persisting into 2025.
If you look at the next six months.....job stability is likely to be the top problem discussed.
2 comments:
Bottom line, they did it to themselves. Same way they did it here in the U.S. Unfortunately in GER they don't seem to have the will to stop or correct it.
There were different elements working to downsize the German machine. Each time they gave another benefit to the working class...it added cost to a product. The cheap Russian natural gas....gave them an advantage...until the war. When they went anti-nuke energy....they presented new problems. With crime increases between 2010 and 2020....they needed more cops...costing tax revenue. There's probably over 700 'paths' they took to reach the present mess. They have one single plus-up remaining....developmentally....they can blow the socks off almost every single industrial nation. If the 'rocket-scientists' ever up and leave....they are finished.
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