High taxes, housing skyrocket, low salary = disaster...

Germany built its current economic model on globalization and the ability to cash in its demographic dividend. The problem is you only get to cash in that dividend once, and globalization is dead. Germany will have to come up with a different model and the ride will be very rough. Keeping in mind the German demographic is going to be something much smaller than before so their new model will not be able to recreate the recent past.

The psychological state of Germany is not much different from when I moved to Germany six years ago. Even then, I was surprised that a country which offers its people so much generated so much unhappiness among the public. I joined a large German company in a very desirable city. Employees were offered excellent work-life balance and facilities by our employer and significant worker protections, a clean environment, and healthcare by the government. Nonetheless, people were unhappy. The situation is even more bizarre in the former East German states, into which the federal government has pour billions of euros into building modern infrastructure and providing services to people.

No vision - The same applies to the Netherlands, which is economically very dependent on Germany's economy well-being and also lacks any vision in politics!

When the hungarians are happier than you, something is wrong. Our main export is pessimism and alcohol.

Germany needs lower cost of energy, less regulations, better business climate that encourages people to start businesses and take risks. Germany is an industrial and innovative nation, and needs to get back to the fundamental principles that lead to that.

Bureaucracy has paralyzed Germany. That is the single most important problem.

The mood is worse than the reality.

What would help is DFB gets back to its winning ways.

It would be good to hear some data on income inequality. When stock markets are booming, but people on the ground feel insecure… income inequality is likely the reason.

its hard to build trust when they are lying about so many things

Energy is too expensive in the Eurozone. The economy competitiveness is not viable anymore.

Of course, the situation is not ideal, but we are still living under awesome conditions here in Germany

Scholz is the main reason for this pessimism. The public accepted that great changes are ahead, but the hesitant and half-hearted implementation are not going to convince anybody. Go big or go bust.

High energy costs is always a very very bad sign

I think we all know what happened last time Germany went through serious austerity😬🙋🏻‍♂️

Hats off to the USA. For the second time in history, they were able to plunge their Western European colonies into chaos. Truly brilliant work.

Living off welfare in Germany makes more economic sense thean working a low wage job. One of the reasons why the broad population is pissed off. Also basically unregulated mass immigration into the welfare systems makes the hard working middle class very angry.

Sehr komisch wie alles was nicht Links-politisch ist sofort als Rechtsextrem abgestempelt wird. Ist leichter als dass man eine Diskussion versucht durchzuführen. Es wurde auch nichts über den Flüchtlingskrisen gesagt, was sehr wichtig ist und dafür sorgt, dass deutlich weniger Budget da ist für die Nationalen und korrekt immigrierten Einwohnern.

Germany’s problem is structural. German economy is not keeping up with the new economy; digitalization and the new car technology.. it doesn’t attract the highly qualified professionals because of complicated bureaucracy and low wages. US is the magnet for world’s smartest engineers and IT professionals. You can be rich with your salary if you are qualified in US but not in Germany. Language is another hurdle. World’s brightest people speak already English and don’t or can’t learn German. Germany has been(still) making enormous sums of money of their beautiful and strong cars. But things have changed: almost everything is one way or the other digitalized and Germany is unfortunately hasn’t given enough consideration to this giant change. One single American car company(Tesla) has 3 times more market value than ALL the German cars combined. One Danish medicin company(novo nordisk) has more market value than all german car companies combined. Germans are innovative people but they have failed in the IT race. They will catch up only if their politicians start making a progress by investing in IT. One other problem is the highly skilled immigrants don’t feel safe and welcomed in Germany. Germany is unfortunately considered to be discriminatory. In US they don’t have “immigrant complex”. In US you feel that you are american but in Germany you feel like unwanted,unwelcomed immigrant. If you take a look at where these bright IT engineers in magnificent 7 companies’s employees come from you will see that majority of them are Asians, Middle Eastern, Eastern Europeans and Africans… Do something about it Germany! Don’t blame every failure on immigrants. Immigrants can be treasure for you(like in US) if you treat term well.. Hope the best for Germany and Europe.

Yeah folks keep doing what they are doing. Keep voting for the same visionless parties that have dug you into this hole. SPD-CDU/CSU two sides of the same coin.

Finalyy Dw started focus on own issues😅

DW has a personal problem with right 😂

No cheap fuel - no current economic model. From Russia with love ❤

Very insightful analysis! Thanks for breaking everything down.

Germans: My government can’t accomplish anything! American: First time?

It was primarily the CDU and its inaction that brought the country into this situation. And the nanny state already existed at the time of the 2008 financial crisis and not just since the pandemic. As far as the AfD is concerned, they want to abolish subsidies for farmers and Germany should leave the EU (a look at the UK after Brexit: there is now real poverty, dead inner cities, a catastrophic health system, completely ruined agriculture, zero investments, complete standstill). But it is true that the traffic light government lacks vision, or at least it does not share it with the citizens. The media in general could do a better job of clarifying things, like this video.

Omg as an expat now living in the U.S the best thing I ever did was leave germany

I start worry when the German farmers start marching in sync.

German the 51State of US

Poverty will bring vision As i see comfort has weakened people here

There is one big uncertainty for many Germans coming: age and death, since the median age is 47 and the number wise biggest generation in retirement age. There was economic growth over the last decades, but the average German didn‘t perceived a real improvement in their financial status, even before the pandemic and inflation. A lot of uncertainty because of climate change, migration, divided mindsets and of course the horrible weather in winter

Situation currently sucks. Personally, I don't feel this labour shortage, I'm an expat, a qualified person with a German PhD in biochemical engineering, fluent in three languages (including German), living in the German region that is supposed to have the most opportunities for prosperity in my area, yet I haven't been able to find a job for 2 years. I would have left long ago if my children hadn't settled here

6:20 come on DW its #3 according to the recent stats (IMF 2023 compared to the shown World Bank 2022 numbers)

Economic investigator Frank G Melbourne Australia is following this very informative content cheers Frank 😊

It's ok to accept you're not always gonna have prosperity. They had decades of growth but didn't catch up with the fast going digital age. Now they're surprised that they're left behind.

No, Mr. Chancellor, Germany's only industrial goal is to engineer an independent energy source. I don't see anybody else in the world in the position to do so. Otherwise, you are always beholden to someone else. Solve your historic national challenge

Democracy and freedom depend on a population that actively support it. I'm all for the world, other cultures, working together and foreigners, but they mostly come from cultures that depend on authoritarians. They want a 'strong' man. They may abide by German law (may) but they do not actively support freedom and democracy. That is almost 30% of people not taking part in our values and passively appreciating our decline. Then there's another chunk of the population like kids and the old and sick that do not take part. From the remaining electorate there's a quite countable minority that is right extreme and actively sabotages democracy and freedom. The remaining part that values our freedom has become too small. Democracy can't live on it. Stop the senseless immigration or there will be no Germany anymore in the future. I hate right extremism but this is my pitch.

Time to drop the "green" policy. No more pretending, no more idiocy.

you just don’t get it do you? You had the cheapest energy in the world. When Japan paid $16/BTU you were paying $4/BTU When the rest of the world faced imported cars you hid inside the EU and it’s protectionism. When the rest of the world was building infrastructure for the 21C (like the National Broadband Network across Australia) you bought market share by propping up the EU. Now it’s all gone. You didn’t invest in yourself you invested in the EU - and they don’t care about you. Now you are in a deeper mess than you can imagine.

Prospects for Europe's largest economy is how not to be Europe's largest economy

As we delve into the myriad issues plaguing Germany, it's becoming increasingly apparent that the prevailing socialist framework is hindering rather than aiding progress. It's about time we shift gears and embrace a more capitalist approach, one that champions individual autonomy and minimizes government intrusion. The exorbitant tax rates, hovering around a jaw-dropping 50%, serve as a stark reminder of the systemic flaws that stifle innovation and discourage entrepreneurship. It's frustrating to witness a system that robs us of our agency, leaving us dependent on bureaucratic whims rather than our own ingenuity. Let's shake off this lethargy, break free from the shackles of excessive regulation, and pave the way for a future where personal responsibility reigns supreme and genuine progress thrives.

germany was kinda willfully oblivious to competing with the us. while everyone was gawking at the us social issues, no one noticed the economy raking up XP points in productivity and risk mitigation and then when we raised rates and managed, countries like german were caught unprepared to quickly adapt

Hahaha. I left Germany in 2016 for the US foreseeing what many Germans are starting to realize now: Germany has peaked. Leaving Germany was the best decision for myself of my life.

My opinion: With the work model Zeitarbeit, Gerhard Schröder established modern slavery in Germany. It´s a loop without security and dignity where only the employer benefits. So many people are caught up in that. This should get canceled.

I am Ukrainian IT guy and I literally dont move to Germany because salary would at best stay the same numerically Plus even startups seem to rely on the tech and build products as in Ukraine 10 years ago

The problem is that in each project they need to find compromises, three parties with totally different visions and approaches. They should agree that with each project one of the parties can decide as they think it is best for the country. Then we would have strong decision which brings us forward but not a weak compromise…

One doesn't need to be a rocket scientist to understand why people are unhappy. Germany used to be the industry leader worldwide and these days seem to be over. Auto, metal, chemical industries are in decline and one of the biggest reasons is energy prices. If you want to shutdown nuclear plants, cut the pipe and bet on expensive LNG import then you have to pay. As a result most energy-hungry plants shut down as their products are no longer competitive. These are self-inflicted problems which could have been avoided. It is even more aggravating that Germany is the colossus of European industry so its decline drags whole Europe down.

Olaf Scholz is at pressure? Feels pressure? Look at who you are talking about again...

So+1.5°C and if you start to use wild birds as shield in winter you should be able to avoid snow at all and slowly but still with step by step planting world should get into tropical weather direction

We're trying to build an industrialized, social, rich and happy country without Fossil fuels.

I don’t agree with this conclusion. Germany is in fact deindustrialising rapidly, with much of the industry relocating to the USA.

Without a vision is exactly what I had in mind about Germany, this is truly sad, once a poster boy of the developed world, this country seems to have lost it all, this is what happens when you are too confident of yourself. From woke identity politics to blaming/patronizing the global south, this country has become an oligarchy, pandering to the richest and taxing the working class to death.

Warum ist Strom in Frankreich günstiger als in Deutschland?

Germany just need to elect leaders that follow big brother U.S and all problem will be solved.

"Anyone who has visions should see a doctor." Chancelor Helmut Schmidt

The farmers and unions need to look at Argentina on how endless social spending ends.

It’s over, cheap Russian gas is over now we buy from US 8x more expensive. Germany closed nuclear power plants at 40€/MWh and build massive wind and solar at 150€/MWh, you dont need to be economist to know that it will just be a disaster, high prices energy = high prices of everything that you touch.

No farmers No food full support to the farmers

Most countries won’t change why green dtuff won’t change

A long report but didnt touch on any specific issues....all you get out of it was that people are not happy. And thats the same everywhere

loving your country these days is called extreme far right

Why do we need vision?. Oh yeah. Keeping up the class

Fratzscher says: "Germany must focus on its strengths" ->>> This is not completely nonsense but still a dangerous paradigm. Germany was also once very strong in the production of good steam engines. Times change and what you are strong in could be obsolete tomorrow.

Back in the day…

100% of my support to the farmers in Germany (and elsewhere in Europe) who are protesting being put out of business AND The people of those countries having to import food through a global supply chain (the utopia of the W.E.F.) The psychopaths in the WEF, the EU, and the UN want to run the farmers out of business and then: 1.) Force the people of Europe to start depending on food imported from other countries in a time of an increasingly fragile global shipping network.*** 2.) Once the European farmers have been driven into bankruptcy; Karl Schwab's "stakeholder capitalists" will start buying up the farms and turn them into mega-farms that use patented seeds from corporations (e.g. Monsanto/Bayer) Patented seeds sprout only once; the grain acquired from these seeds is sterile; the grain can not Be used to plant the next year's crop. How do I know? That is what has happened in the USA . All of the small and medium-sized farms have been driven out of existence from the 1970's onward. (Slow process, not that many people noticed until the big- and mega- farms got on the GMO trains for their main crops ***The world's trade routes will be compromised as the USA redirects it's own navy to the Pacific and Atlantic/Caribbean shores. Europe is going to have to step up and defend itself as well as the supply routes from the Middle East for their oil.

is individual initiative and innovation rewarded in Germany? Or are innovators penalized?

Never interview Marcelo Fratscherino. He is so left as living in Alaska

Germany is not dead yet. Most important: get demographics in order.

Keep making good cars and ignore greens ...

We would not have food on our plates if it wasn't for farmers. We need to make their lives easier, not harder!

Stability is never sexy. It is the shortest route to lethargy.

No one is questioning the main reason...

Why do mainstream media refer to anyone who is right of centre far right?

Many Germans tend to be whining about anything... personal experience from a German ;) So don't take such rankings too seriously. BUT of course turning whining into right extremist voting becomes a problem for democracy and the state's stability. That is what the "silent majority" of Germans noticed recently and protested against the AFD and her deportation plans of foreign rooted people, even German citizens. However... people describe the economic situation in Germany as bad, despite very few people having severe economic problems themselves. That is bizarre... it is a downstream mood, not a reality. The government does not succeed in giving positive outlooks into the future coming through. A complex situation, due to political divisions, the media, general retreat into private life after pandemic, due to war and so on.... My personal opinion: there are severe challenges - energy prices for the economy, high inflation, though shrinking and not comparable to other countries, climate change accelerating a lot, international order in question. But nothing a progressive government could not overcome. The German governmental coalition is annoying for three parties needing to find an agreement. But other countries have known this for long... and what are German alternatives? For sure worse.

Recession and economic contraction is the future for Germans...

Why Europe have to listen to US.

Three way collation government - which one is of the Extreme Type. Seems like a three way system of any kind simply does not work, some dude once said - the times they are a changing. Get on with it or stay the same

The problem is not the opposition, the problem is the incompetence of the government. In reality, the current govern is being not democratic. Sensorship, prohibition of opposition and intents to restrict freedon from opposition is becomming normal. It ia not Democratic. The Ampel Regirung needs to focus in measures to improve economy and not in the opposition.

What kind of country let its source of energy blown to pieces and never mention it in videos like this? Jaja

The way to reduce inflation rate is simple allow iranian and Venezuelan oil come into the market.Europe is still purchasing russian oil which is just refined in other country........,Oil prices will go down in the market and will reduce transportation and logistics cost which which will result in deflation of goods and services in economy.

Germany has to think short term and long term simultaneously.

What’s with media outlets using “populism” as if it’s derogatory? Is the point in a democracy not to be the more popular party? Unless you’re admitting or claiming your population is too uneducated to be trusted?

Green part lol

Germans forget what they are capable of

90% wealth tax now for everyone making more than 100 million a year.

Great......❤❤❤❤❤❤........

More capitalist policies are needed in Germany.

When you don’t focus on your country, but you focuses more concern on democracy in rest of the world then its happens 😂😂😂😂😂

Last time, people selected them,then now, their rating is always decreasing, they did themselve, because they don't care about what people want then afd propose some things that people want and people have hope again so afd rating is increasing, this is democracy.

Lack of vision > i agree

If the cost of living is hurting so much, how is it possible that Germans spent 180 million euros on Fireworks last year?

Yes I believe we're screwed

USA blew up Germany's Nordstream pipelines and now they wonder why things are going wrong. 😂

Inflation is 7.5% in Putin's Russia and expected to explode. The ruble has lost over 40% of its value. Interest rates are 16% in Putin's Russia so I'd say overall Germany isn't doing that bad compared to Russia.

People Here in Germany are so unhappy because the older generations has their life Focus on Building up Money and infrastructure instead of caring their souls After the two big wars. The generation now has no! Sense of their own life, Most of them life the life of their grandfathers and mothers because they Said it is Right but the Soul does Not Need That much Money or any things but happy people. Thats the Reason too, why everybody is working so Hard, the System was Build on the wrong Fundament. I grow up in the south of Germany and im afraid every Single day of my unhappy mates because: you can Not be happy if all the people Arround you are unhappy or in Rage because their inner life Situation is so Bad but the System is so Strong That a Chance is Not in Sight.

Germany can easily get back on its feet. But they need a new government and remove many nonsense laws / change the laws/regulations. I used to live in Germany for nearly a decade and moved on to Asia .. my life in Asia was stressful but also fruitful building machinery; The government in that particular country in Asia is not getting into my way (no regulations, no ripping off during the buildup stage). While in Germany I'd face market access issues as well... and I do not like the attitude of several authorities there.

End of monopoly money, this is normal

Give people safety and prosperity, instead of austerity and uncertainty. Capitalism must work for the good of the common people. Otherwise, extremism and anger will take over.

It's funny you say right wing is a response don't forget that left wing socialist movements are much bigger response and don't forget the name of the German party that took over Germany in the 1930s was the Democrat socialist party not the name we use today