Germany’s COLLAPSE Doesn’t Scare Europe Anymore! Economic Decline, Workforce Shortage, Energy Crisis

Germany’s COLLAPSE Doesn’t Scare Europe Anymore! Economic Decline, Workforce Shortage, Energy Crisis

several decades ago Germany was an icon
of a wealthy Europe but sadly those days
are long gone and present day Germany is
in a bad place financially and if you’re
just getting to know about the troubles
facing Germany you probably came a
little late to the party because
Germany’s Financial woses are not new
they’ve been around for a while without
getting noticed by many people both in
and out of Europe the issues with
Germany economy go back to the second
world war it is common knowledge that
Germany lost the second world war and
with this came the loss of a level of
relevance in the grand scheme of things
but what isn’t exactly common knowledge
is that relevance wasn’t the only thing
that Germany lost it also lost a lot of
its economic power post World War II
Germany was in a bad situation
financially but it didn’t exactly stay
in a poor situation for so long not
everyone might agree with this though
however after the second world war
Germany was divided into the west and
the East the West Was perhaps not doing
so badly sadly the story was different
for the East after the second world war
the United States came into a position
of global prominence so it came up with
a plan to fix the damaged economy of
Western Europe This was called the
Marshall Plan years after the Marshall
Plan it is obvious that it was a major
success UC but it was limited to the
West so East Germany was left
unattended while West Germany thrived
economically because of the support it
got from the United States’s Marshall
Plan the East was struggling the reason
for this is obvious it didn’t get any
post-war support since East Germany and
West Germany were different nations
their economic status didn’t matter much
to each other however after the fall of
the Berlin Wall in 1989 and the
unification of East and West Germany it
became obvious that this was an issue
West Germany couldn’t boast of its
thriving economy while the East was in
economic ruins with East and West
Germany becoming one nation in 1990 the
financial disparity between these two
regions became a major concern for the
next decade Germany picked itself up and
gradually built its economy until the
early 2000s when it began to thrive you
see the challenges of unification were
real Germany didn’t deny them but it
found a way to rise above them and it
soon became a symbol of a thriving
economy Germany was moving at a very
rapid pace and was even beginning to rub
shoulders with the likes of France Japan
and the United States that were ahead of
it Germany soon got into a golden age at
this point German products became
synonymous with efficiency and luxury
Beyond German products simply being
considered great for how efficient they
were they became household names and
soon Germany was back at the Forefront
of economic
success Germany’s Golden Age lasted for
quite a while and this made the European
nation an exalted Nation among other
nations but the golden age is just an
era and eras are subject to change so
while Germany might have become an
envied Nation it only enjoyed this
position for a period although extended
this period seems to be over Germany
still has the respect of the rest of the
world but the major reason for this
respect is its reputation not
necessarily how great it is with the
fading of its golden age comes a series
of challenges that it doesn’t appear to
have the answers to but how did Germany
go from a thriving economy to a
struggling one this is a billion doll
question and I will answer it in a
moment but before we go on with an
answer kind smash the like and share
buttons that’s not all please subscribe
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this moving on there are several reasons
why the German economy appears to be
struggling some of these reasons are
obvious however you might need to have a
proper understanding of Economics to
notice the others since some of these
reasons are obvious you might want to
blame Germany’s present economic State
on them but things are not quite what
they seem to be
right now it’s easy to blame Germany’s
failing economy on the influx of
refugees from Ukraine well as much as
the Russia Ukraine war has affected the
economy of Germany it is a peripheral
issue when the struggling German economy
is looked at in detail Germany is a
highly industrialized Nation it is home
to a lot of leading car brands of course
these car brands need factories to
function and those factories need power
to run this is common knowledge and
Germany didn’t make a mistake by getting
industrialized and needing a great deal
of energy but it made a mistake in its
choice of energy source Germany could
have decided to have its energy needs
met through various means however it
decided to depend on Russia for its
energy Supply Germany probably did this
for various reasons but one reason that
seems quite obvious is that getting
energy from Russia was cheap so it made
sense that it depended on Russia for its
energy needs since it didn’t have to
spend a lot of money on energy
production costs could be low and
german-based firms could maximize profit
regardless of how you decide to think of
this it was good for the German economy
but that was only in the short term you
see getting its energy from Russia was
Germany’s way of shooting itself in the
foot it didn’t know this at the time it
struck a deal with Russia but it found
out much later when it began to get away
from Russia Germany didn’t know it was
making a move that would come back to
haunt it and that was because of the
relationship it had with Russia in the
past during the second world war the
Germans and the Russians were enemies
and it didn’t quite seem like they would
have any form of dealing much later we
might not know exactly when things
changed and they got comfortable with
each other however when Chancellor Gard
Schroeder took over he appeared to have
been a major link between the Germans
and the Russians he had some Russian
connection C that simply made him
comfortable doing business with the
Russians while Schroeder LED Germany he
struck several deals that essentially
made Russia and Germany business
partners Germany’s energy needs were
essentially tied to Russia’s willingness
to supply them with energy this would
later turn out to be a bad move as much
as people now agree it wasn’t a great
move there is still another reason why
the German economy seems to be failing
and unlike other reasons for the
dwindling econom IC strength of Germany
this particular reason is completely
Germany’s fault it will be impossible to
blame another Nation even slightly while
depending on Russia for its energy
Germany could have developed nuclear
energy as several Nations have done
however for some reason it decided
against having anything to do with
nuclear energy this was its way of
walking away from the perceived trouble
associated with nuclear energy at the
time when it decided to do away with
with nuclear energy it seemed to be
doing its bit to protect the
environment but just maybe if it had an
idea of what the future had to offer its
approach to energy would have been a lot
different Germany’s refusal to develop
nuclear energy made it very dependent on
Russia for its energy needs this seemed
perfect until the Russia Ukraine war
started with the start of this war came
a form of energy related trouble for the
Germans as the war got more intense this
energy crisis got more serious and
Germany is in quite a bit of trouble now
Russia’s invasion of Ukraine was the
impetus and push that many people saw
was needed for Germany’s political class
to do things that others have wanted to
do for a very long time and what many of
them wanted to do themselves but either
they didn’t have the political will or
support from the German public it might
seem like the energy crisis in Germany
is the only problem they have sadly
that’s not the case unlike the rest of
the world Germany hasn’t Advanced
technologically it seems to be drawing
back while other countries move ahead
the internet in Germany is nothing like
what is obtainable in other parts of the
world the internet speed in Germany is
generally slow this is a major problem
but it gets worse the rural areas are
even worse than the
cities the digital age isn’t the only
thing that Germany is left out of there
is also the issue of sticking to
combustion engines when others have
begun giving attention to alternate
sources of power for vehicles it might
seem like the Germans had no idea what
was going on but they did so why then
did you decide to stick to gas powered
vehicles well sticking to gas- powered
vehicles was easy because they didn’t
pay so much for energy now that energy
has become expensive getting into the
business of making electric vehicles has
become difficult because the German auto
market is already flooded with electric
cars produced by
[Music]
Tesla in addition to the already
mentioned problems that Germany is
facing there is also the issue of a
shortage of workers although the war in
Ukraine brought a lot of people into
Germany most of these people were women
and children sadly they can’t add much
to the German Workforce ultimately
various sectors in the country are not
as productive as they could be the fin
financial sector in Germany might be
performing below par and that’s an issue
for the economy however that’s not the
only reason for the German economy being
in a bad place there is also the
political issue this might not be known
outside of Germany but there is an issue
of marginalization in East Germany and
this is just bad for the general
productivity of the country the
instability in Germany is now common
knowledge and it is easy to think of it
as a German problem alone unfortunately
this is far from the truth Germany’s
instability is a problem for the rest of
Europe the business World in Europe is
being affected but it’s only a matter of
time before every part of Europe feels
the heat the landscape of corporate
distress in Europe is evolving while
geography and sector continue to be
important factors in assessing company’s
Financial prospects we’re seeing the
size of businesses having a much greater
impact on their levels of distress there
appears to be a growing disparity
between small and large corporations
with smaller firms having been hit
hardest by Rising interest rates and
liquidity challenges those on the cusp
of refinancing are feeling this most
acutely while larger companies face the
same market conditions they tend to
benefit from more diverse funding
options and greater liquidity reserves
providing them with more flexibility to
manage their Capital
structures if Germany crumbles Europe
might not necessarily crumble but the
fall of Germany could be the beginning
of the collapse of Europe we hope it
doesn’t get to this but the outcome of
things is dependent on the decisions
taken by those in charge of running
Germany so what do you think the outcome
of this study will be will Germany find
a way to build its economy or is this
the beginning of the end kindly tell us
what you think in the comment section
below before moving on please like and
share this video also subscribe to this
channel if you’re new here see you in
the next video

Now we will discuss today’s Europe’s Economy topic: Germany’s Collapse Doesn’t Scare Europe Anymore! Economic Decline, Workforce Shortage, Energy Crisis

Several decades ago, Germany was an icon of a wealthy Europe. But sadly, those days are long gone and present-day Germany is in a bad place financially, and if you are just getting to know about the troubles facing Germany, you probably came a little late to the party because Germany’s financial woes are not new. They have been around for a while without getting noticed by several people, both in and out of Europe.

The issues with Germany’s economy go back to the Second World War. It is common knowledge that Germany lost the Second World War, and with this came the loss of a level of relevance in the grand scheme of things. But what isn’t exactly common knowledge is that relevance wasn’t the only thing that Germany lost. It also lost a lot of its economic power.

Post-World War II, Germany was in a bad situation financially, but it didn’t exactly stay in a poor situation for so long. Not everyone might agree with this, though. However, after the Second World War, Germany was divided into the West and the East. The West was perhaps not doing so badly. Sadly, the story was different for the East.

After the Second World War, the United States came into a position of global prominence. So, it came up with a plan to fix the damaged economy of Western Europe. This was called the Marshall Plan. Years after the Marshall Plan, it is obvious that it was a major success. But it was limited to the West. So, East Germany was left unattended.

While West Germany thrived economically because of the support it got from the United States’s Marshall Plan, the East was struggling. The reason for this is obvious: it didn’t get any post-war support.

Since East Germany and West Germany were different nations, their economic status didn’t matter much to each other. However, after the fall of the Berlin Wall in 1989 and the unification of West and East Germany, it became obvious that this was an issue. West Germany couldn’t boast of its thriving economy while the East was in economic ruins. With East and West Germany becoming one nation in 1990, the financial disparity between these two regions became a major concern.