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German economy: what makes the German economy so successful?
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3 Answers
In my opinion, it's less the actual government and more of a general attitude. In much of Europe, there seems to be an attitude of entitlement towards social services. I'm amazed at the violent responses by young "twenty-somethings" at the idea of raising of the retirement age for government workers. These people have very firm idea of what the government is going to give them and they feel cheated and wronged if it may not happen. I believe this sense of entitlement is cancerous.
It would appear that the German attitude is different. There is still a drive for self reliance and sustainability. This leads to sober frugality and industrious productivity. These are the traits that made the US great and hopefully we will be reminded by their example and continue in that tradition.
Germany is the largest exporter of luxury vehicles such as Mercedes, Audi, Volkswagen, BMW not to mention numerous takeover acquisitions for other European firms like Land Rover. In other words, it's a master in creation and ensuring sustainability of it's prestigious brands. They specialize in high value commodities which in turn produce gigantic margins and translates into better salaries for it's hardworking citizens. In comparison, China is undergoing an infancy industrialization stage where it deals with inexpressive, low quality, and mediocre items which produce little profits and western resellers manipulate it's position by obtaining a better share of profits from a commodity they did not produce.
During each revolution it's important for nation to have willing firms which will delve into a new uncharted sector. Be it digital, space travel, discovery of new compounds etc. Germany established the aforementioned car brands after the first world war and haven't waned since so starting a race at the right time is also essential.
I spotted another interesting trend whilst on Wikipedia: a size of population matters since Germany is the most populous nation in Europe so it's dominance doesn't necessarily equate to higher G.D.P per capita, in theory the Netherlands is the most affluent nation in Europe.
Germany/USA populations are resources in themselves (if the inhabitants are productive) since it encourages the uptake of new concepts and makes the prospect of exporting them more likely.
Key ingredient to Germany's successful economy: brands, hi value-commodities, a knack identifying industrious opportunities, capable workforce, and so on.
The Government employed Policies that encourage both Small Business and Large Corporation
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