Comments by "Paul Aiello" (@paul1979uk2000) on "Germany’s Deindustrialisation Explained" video.

  1. That's true and it is an area that EU countries need to get to grips with, high-tech is the future and the EU countries have been missing the boat on that. But they are more than capable of getting back in the game, South Korea is a small economy but very high-tech, the EU economy is a lot bigger than them, it's high skilled and has a big population, it's just a matter of incentive and right government policies to make it happen, and I think it will happen as high-tech reduces other industries, like manufacturing could be replaced by robotics and A.I. in the sense that most manufacturing is done much closer to where the goods are being sold, meaning it wouldn't be good for exports, which is what Germany is, but Germany is also in a good position to be the Silicon Valley of the EU if they pushed hard on that.
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  2.  @Klote3241 That's true, but we are talking taxpayers subsidizing corporations, I can see why the US and the EU would do that, but it can lead to a race to the bottom, and goes against the ideals of free markets, it's also quite insulting to the taxpayers that are subsidizing corporate greed without getting anything back, which I know some will say jobs creations, but in the end, most of the people that are paying for it, don't get to benefit from it. Many corporations are already threatening governments that unless they give them a better deal on subsides, they'll invest somewhere else, in other words, they want taxpayers to pay for much of their investments, in a sense, it's almost like the public are subsidizing the rich, that would be fine if the public had a stake in it but it's clear we don't. The thing is, there are limited options to get around this, unless governments by regulations put far more pressure on corporations to manufacture far more goods within the economy the goods are being sold in, meaning they would have to invest in the markets they sell goods in regardless of subsides.
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  3. Of course Germany can recovery, they've been through far worse throughout history and come out swinging. How they recover, well there are a few options, but maybe this could be the right time for Germany to push hard on a high-tech industry, and could end up as the Silicon Valley of Europe. The export market is always going to be temperamental because of outside factors, but then there's also robotics and A.I. that's very likely going to have a massive impact on manufacturing, in the sense that a lot more manufacturing is going to be done much closer to the markets the goods are being sold in, being that labour cost will be much less of a factor. Manufacturing is still going to be a big industry and Germany shouldn't pull out of that, but the world is changing and they really need to get into new areas, high-tech is probably the best one, an area that Europe have been lacking compared to the US, South Korea, Japan and China, and it's likely that high-tech is where a big chunk of economic growth is going to be. In any case, I don't think Germany needs to worry just yet, but I do think they need to transform their economy to be on a better footing to compete in the future. As for the EU and it's countries, I think they should play both sides, the US and China and do what's in its own interest and not what is in the interest of the US, which clearly don't care about European interest and just want us to do America's bidding on China because the US fears a rising China. With that said, in some areas that are sensitive, it makes sense for the EU to decouple from China to reduce risk, but in many other areas, it doesn't make sense because the US wants us too, after all, the US is willing to do actions that harm European interest without any considerations, Europeans should start looking after their own interest thought the EU, even if those interest hurts US interest, that basically means having a more neutral line on China, because China is more of a problem for the US long term, but that doesn't mean the EU shouldn't have concerns about China, just that the concerns are different then what the US are.
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