German powerhouse struggling

Thrugelmir

michaels wrote: »

But surely that is the whole point, the Germans were only able to make more than they consumed because people in other countries were willing to consume more than they made - without the rest spending money they didn't have Germany could not have made what it didn't want, the one is the flip side of the other.

Germany make things people want to buy. It's engineering sector is world renowned. Germans aren't into consumerism either. The reasons are steeped in history and therefore their culture. Virtually a reverse mirror image of the UK. Where without export growth to rebalance the economy. We can only get poorer.

When did you last go to Germany?

CLAPTON

Thrugelmir wrote: »

Germany make things people want to buy. It's engineering sector is world renowned. Germans aren't into consumerism either. The reasons are steeped in history and therefore their culture. Virtually a reverse mirror image of the UK. Where without export growth to rebalance the economy. We can only get poorer.

When did you last go to Germany?

it's absurd not to consume as that is the sole purpose of working

Thrugelmir

CLAPTON wrote: »

it's absurd not to consume as that is the sole purpose of working

That's the British disease.

Generali

Thrugelmir wrote: »

That's the British disease.

If everyone is meant to run a surplus, who should they sell to?

A healthy economy should have a current account that roughly balances. The point of exporting is to pay for imports, not to collect foreign assets. I'd say the only exception is with miners/oil producers who face a finite income stream.

CLAPTON

Thrugelmir wrote: »

That's the British disease.

so on your death bed you will celebrate your savings
and not regret having a poor life, no happy family holidays, no travel, no birthday celebrations, no warm house and nice clothes, no financial support to your children


yes of course you will

wotsthat

Thrugelmir wrote: »

Germany make things people want to buy. It's engineering sector is world renowned. Germans aren't into consumerism either. The reasons are steeped in history and therefore their culture. Virtually a reverse mirror image of the UK. Where without export growth to rebalance the economy. We can only get poorer.

When did you last go to Germany?

At least here if I decide to consume less I have the option to produce less to maintain my lifestyle. Germans don't seem to have the same option - they're busy transferring wealth to Southern Europe so the inhabitants there can consume on their behalf.

It's the German disease.

princeofpounds

It's a great opportunity for the UK to take up this slack from Germany's struggling situation....

It doesn't work like that.

buglawton

CLAPTON wrote: »

it's absurd not to consume as that is the sole purpose of working

The Germans do of course consume but:
- Don't resort to borrowing so much in order to do it
- Tend to think things through more carefully when making purchases, are less fashion and more investment conscious.

Why do you think Aldi and Lidl both originate in Germany? A very large proportion of all classes of German shoppers used these stores decades before the UK discovered them.

When I worked in Germany in the early 80s, diesel Golfs were all the rage with intense comparisons of fuel consumption among colleagues. Again it took a lot longer for this idea about motoring frugality to reach the UK.

Frugal does not mean poor, German per capita GDP is some 18% higher than the UK's, meaning the average German is about 18% richer than the average UK inhabitant.
http://blogs.wsj.com/economics/2014/07/25/u-k-recovery-flattered-by-population-growth/

shortchanged_2

princeofpounds wrote: »

It doesn't work like that.

That was my sarcastic side if you didn't get it.

shortchanged_2

buglawton wrote: »

The Germans do of course consume but:
- Don't resort to borrowing so much in order to do it
- Tend to think things through more carefully when making purchases, are less fashion and more investment conscious.

Why do you think Aldi and Lidl both originate in Germany? A very large proportion of all classes of German shoppers used these stores decades before the UK discovered them.

When I worked in Germany in the early 80s, diesel Golfs were all the rage with intense comparisons of fuel consumption among colleagues. Again it took a lot longer for this idea about motoring frugality to reach the UK.

Frugal does not mean poor, German per capita GDP is some 18% higher than the UK's, meaning the average German is about 18% richer than the average UK inhabitant.
http://blogs.wsj.com/economics/2014/07/25/u-k-recovery-flattered-by-population-growth/

It also probably helps that they don't spend so much of their income on housing costs.