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Germany has slowed down because the productivity gains from 20 years ago ("Agenda 2010") have run out of steam (Merkel didn't do anything for productivity for 1
by KingOfCoders 3y ago
Germany has slowed down because the productivity gains from 20 years ago ("Agenda 2010") have run out of steam (Merkel didn't do anything for productivity for 16 years), more recently consumer demand has decreased because Germany was hit by high gas costs (everyone heats with gas) and the current government increased costs for consumers (e.G. everyone needs to replace their gas heating - driven by the minister for the economy, madness! - who is a vice chancellor and therefor minister for economy but needs to play to his green base and does environment policty instead of economics) - so consumers have a very negative view of the future and are very cautious with their money.
Dropping German consumer demand has nothing to do with competitiveness and trade surpluses.
- NikxDa 3y agoJust to be clear here, the law you are referencing has been stopped and isn't passed yet. Mentioning it as if it were a fact is misleading, in my opinion.
- KingOfCoders 3y agoConsumer consumption is not based on reality but on perceptions by the consumers. If they fear the future, they don't buy. It is not important if the law has passed or not (if passed it would have gone into effect in some months), the damage - beside many other things - is done.