Reasons why Germany is going downhill, described by German.
Interestingly - except 4, Everything is applicable to India and many other countries.
Without solving deep problems with IRON FIRST, A Country may not achieve its long term Goals in its due course.
1) Mindset and Culture. The idea of entrepreneurship, hard work and reward for risk is becoming completely alien to Germans. New technologies and high growth sectors are almost exclusively perceived in terms of their risks and downsides. Security, reliance on the government for problem solving and tall poppy syndrome are paramount.
2) aka Babudom: Overly complex civic systems. Germans always were famous for their bureaucracy. But government interference in the most minute details of running a business, endless red tape and micro regulations have made it largely impossible to be competitive on the international stage.
3) Poor Work Ethic. What? The Germans? Aren’t they known to be the hard working ones? Well - somehow, our trains are also known to be the punctual ones. These cliches might have been true during the “Wirtschaftswunder” - but today, Germans work the fewest hours of any OECD country.
4) Climate Focus. Germany’s government is focused on a largely ideologically driven understanding of climate change prevention. It’s not just that Russian gas is no longer available - in addition all nuclear power plants were shut off. Climate regulation and taxation also adds to rising energy prices and production costs.
5) Worker Rights: Germany has very high levels of worker protections, making it hard to scale workforces up and down and near impossible to dismiss employees for performance reasons.
6) High Taxes. Germany has some of the highest corporation and personal income taxes in the developed world. And while e.g. Scandinavian countries have even higher taxes, in Germany it doesn’t feel like you’re getting something of equal value back from the state. This is of course highly subjective.
7) Few Future Industries. Germany’s industry has focused on gas powered mobility and advanced machine building - and has become a world leader in many of these areas. It has, however, very few software, AI, or other companies that make up the bulk of e.g. the US economic growth.
(the opposite is true in india, India lacks heavy, precise machinery industries but good at Software)