what's wrong with Germany?

Filed in archive Global Economy on February 25, 2005

This Forbes article on Germany's state of economy is harsh but honestly there is not much to disagree with:

"Germany's Acute sense of failure and unhappiness. This is a collective psychological depression that effectively prevents Germany from taking action to remedy its ills. The Germans agree they're in a mess, and many see the obvious way out. The country needs to make the kinds of structural changes in its economy that Prime Minister Thatcher carried out in Britian 20 years ago, changes that have completely transformed the performance and expectations of the British people. But though most Germans know this, they lack the will--and, of course, the leadership--to carry it out. They stay inert, supine, transfixed by fear and angst, paralyzed by the thought of painful adjustments in their safety-first society--and thus coast toward a disaster comparable to Hitlerism."

What is always surprising for me is this abundance with highly skilled people here and this strong resistance to change and decision not to use the skills effectively. Never really found out what's the reason for it...