Germany’s future? Look at its cars

A well-done description of the current – September 2021 – situation in Germany. By the economist. Using the German automobile industry as a window into the wider challenges to the German economy and to German society.

It’s bottom-line question is whether the German people are capable of responding to the challenges of today and the near future.

Careful, cautious, averse to major change

Oliver Nachtwey – Professor of Sociology at the University of Basel in Switzerland – and a sharp-eyed observer of German politics wrote this guest essay in the New York Times the day after the September 26, 2021 federal elections in Germany:

“It could have been a fresh start. In the face of a number of pressing challenges, rising inequality, run-down infrastructure and spiraling climate change among them, the election was a chance for the country to chart a better, more equal course for the 21st century. Instead, Germany is stuck. Ms. Merkel may be leaving. Yet the Germany she cultivated — careful, cautious, averse to major change — will carry on as before.

The campaign gave us early clues. Typically, candidates for the highest political office seek to distance themselves as much as possible from incumbents, to demonstrate the superiority of their vision for the country. But in Germany, the main candidates vied to imitate Ms. Merkel’s centrist political style. It delivered four successive electoral victories, after all.”

Mr. German man loves insurance

An American woman. Married to a German man. About how her husband, and his friends, are enthusiastic about insurance. And about how shocked they were to hear that she, and her American friends, never even heard of such kinds of insurance.

Warning ! This woman is a youtuber. And an American on top. So, she is more than a bit animated. And frankly, she could have made her points in about two minutes instead of seven and a half.

Begin watching at minute 5:00.

Germans think systematically

Germans think systematically. They formulate their understanding of a decision to be made in a very broad and interconnected context. Therefore Germans do not always consider it helpful to take complexity and, as Americans say, “break it down” into its component parts. They aim to do the opposite, to see particulars in their interrelationships. They look for patterns, strive to understand complexity as a whole, as a system.

American Optimism

Mark Shields is a long-time political journalist. He has had a nationally-sydicated column for decades, and is well known from his weekly analysis with David Brooks – a New York Times columnist – on the PBS NewsHour. Listen to minutes 7:28 to 9:25.

Systematic Thinkers

Systematic thinking is the foundation of all research. Germany has produced many great thinkers in the natural and social sciences. They are best known for their systematic approach.

Hildegard von Bingen (1098-1179) was the daughter of German nobility, but decided at an early age to join the Benedictine nuns. She went on to become one of the best educated and wisest of her era, advising secular and religious leaders throughout Europe. Hildegard’s fields of expertise ranged from theology to medicine, music, ethics and cosmology. Her discoveries and insights in the area of plant-based medicines are referred to today.

Immanuel Kant (1724-1804) was one of the leading philosophers of the Enlightenment Age. His Kritik der reinen Vernunft is considered to be the starting point of modern philosophy, creating a new, systematic approach to inquiry. Kant addressed not only the theory of knowledge, but also ethics and aesthetics, the philosophy of religion, law and history, as well as astronomy and the geosciences.

Johann Wolfgang von Goethe (1749-1832) is considered to this day to be the greatest of all German writers. His work encompassed, however, also the natural sciences including botany, optics and the philosophy of color – Farbenlehre.

Carl von Clausewitz (1780-1831) was a Prussian General and military theorist. His Vom Kriege (On War) a systematic approach to strategy, tactics and the philosophy of war, became the foundation of military thinking in all Western nations. Clausewitz’ writings went beyond how wars are won to address the overall nature and meaning of war in the modern world.

Karl Marx (1818-1883) is renowned as a philosopher, political economist and social critic. Together with Friedrich Engels, Marx analyzed during the height of the industrial revolution the mutual influences and interactions between a society‘s consciousness and its economic system. Although Marxism has proven to fail in practice, it led to what many would consider significant social progress in public education, health care, social legislation. Marx’ writings contributed to the creation of labor unions.

Max Weber (1864-1920) was a German sociologist, legal scholar, and political economist. He is considered a founding father of modern sociology. Weber’s theories influenced greatly the so-called specialty areas of sociology: economics, religion, political power structures.

Karl Rahner (1904-1984) is considered to be the most influential Catholic theologian since Thomas Aquinas. His work opened up Catholic theology to a new and deeper understanding of faith. Rahner’s thinking influenced greatly the Second Vatical Council. Inspired by his studies under Martin Heidegger, Rahner synthesized Catholic theology with the philosophies of the modern era.

When German engineers are bored

Engineering in Germany is prestigious. As a field of study it ranks among the most respected. Germany‘s economy, its sophisticated technical products, rely on an abundance of first-class engineers. More than 20% of all first-year university students major in a technical field.

No other European country has a higher percentage of engineers among the workforce than Germany. Nonetheless, industry and the media constantly warn of decreasing numbers of Germans willing to enter the engineering profession.

In order to attract more women to the engineering sciences, German schools and universities organize so-called Girls Day, hoping to fascinate young women with the prospects of a technical career. Engineers begin their careers with a yearly salary of roughly 45,000 Euros. Graduates in the humanities, in contrast, earn about 31,000 Euros per year.

Revisiting a Decision

Revisiting: A term used by Americans to describe the act of questioning a decision made by senior-level management after much time and effort had been invested. Such decisions are typically of strategic nature.

Americans consider „revisiting as decision“ as hindering, slowing down or blocking their implementation, and thus a threat to overall success. There is low tolerance in the American business for the tactical level revisiting decisions made at the strategic level.

Empowerment: To give official authority or legal power to; to enable; to promote the self-actualization or influence. First known use 1648.

The term empowerment has become popular in the American business context, signaling a desire, perhaps also need, for management to be less involved in the tactical execution of their decisions.

If you get killed, at least you won’t know it.

In some cases, Americans are willing to take risks even if no corrective measures are possible. This has been particularly evident in Americans’ willingness to risk death during air and spacecraft testing and early use.

Apollo engineer Jerry Woodfill once said “Among the early space missions, I’ve always believed that the greatest courage was needed by their first crews. Whether it was Al Shepard, the Apollo 1 crew, or shuttle astronauts John Young or Bob Crippen, the most likely danger would be the first time any new space craft was launched into space. Flaws in design or manufacture could very well be fatal during maiden missions.”

American Chuck Yeager, the first man to break the sound barrier, once said “It’s your duty to fly the airplane. If you get killed in it, you don’t know anything anyway.”

Some examples of Americans who knew they were risking death to go into space include:

On April 13, 1970, two days after its launch, an oxygen tank aboard the Apollo 13 spacecraft exploded. 

This led to a desperate attempt for the astronauts to return to earth alive – one that nearly didn’t succeed. Less than a year later, despite having just witnessed an almost-fatal mission, the Apollo 14 spacecraft launched with three crewmembers on board.

On January 28, 1986, the Space Shuttle Challenger exploded 73 seconds after lift-off, killing all seven crew members on board. However, prior to the launch, the astronauts were warned that some of the engineers were worried about the effect of unusually low temperatures on the seals for the solid rocket boosters. 

Although they were not told the extent of the engineers’ concerns, they were warned that launching on January 28th would be more dangerous than waiting for the next available launch date, and asked if they wanted to postpone. All seven decided that their mission was worth the risk of launching on schedule.

Fail Fast, Fail Often

“Fail Fast, Fail Often, Fail Everywhere”. By John Donohue. The New Yorker. May 31, 2015.

“Discussions about failure may come more easily in America in part because our businesspeople are so good at it. The failure rate for startups, using a yardstick in which investors lose everything (i.e., all of the company’s assets are liquidated), is between thirty and forty per cent, according to Shikhar Ghosh, a senior lecturer at Harvard Business School. 

The rate is seventy to eighty per cent if failure is defined as not meeting the projected return on investment, and ninety to ninety-five per cent if it is measured by failing to beat a declared projection.

Despite these statistics, Americans remain remarkably optimistic about the process—last year, venture-capital companies staked forty-eight billion dollars in pursuit of big returns. And the fact that these investments are concentrated in a relatively small number of companies has not seemed to inspire much fear in prospective entrepreneurs. 

According to a study done by the Global Entrepreneurship Monitor, a project run by Babson College and the London Business School, in 2014 among respondents between the ages of eighteen and sixty-four who were not already running their own businesses, just thirty per cent reported that fear of failure would stop them from starting one. 

And more than half of those Americans surveyed believed that there are good opportunities to strike out on one’s own.