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How the sun set on Germany's pride
The Telegraph ^ | 03/04/2004 | Kate Connolly

Posted on 04/03/2004 3:02:21 AM PST by ijcr

A book tracing the nation's economic decline has fuelled its self-loathing, reports Kate Connolly in Berlin

This is how bad things have become in Germany: at the five-star Adlon hotel, close to the Brandenburg Gate, they dump the laundry into lorries every night and ship it 80 miles to Poland.

There it is washed and the following day it is shipped back to Berlin. Yet even after taking into account drivers' pay and fuel, doing the washing in Poland costs only a fraction of German laundering.

The Adlon is not just any hotel. It is a symbol. The building is Berlin's most prestigious establishment, the place for the wealthy and the powerful to stay.

The hotel is a facsimile of an older version built in 1907 and largely destroyed in the war. It was patronised by Kaiser Wilhelm II and inspired Greta Garbo's 1932 film Grand Hotel.

The story of the Adlon's laundry is just one example cited by Gabor Steingart, the author of a new German bestseller, Germany: Decline of a Superstar, which has the nation hooked with its withering portrait of a country on the brink of failure.

The book shot to the top of the bestseller list three days after its publication largely because, according to its 41-year-old author, he is the first German who has dared to break the taboo and reveal the truth.

"It is simply not profitable or viable to have German workers, who cost considerably more than they produce," Mr Steingart says.

"Our productive core is melting away and Germany is going downhill," he says, drawing on a cigar and leaning back in a leather armchair in his glass-panelled office in central Berlin.

"The GDP of both the British and French is higher than the Germans' and this is a shocking discovery for us. In the 1970s, Britain's GDP was only half of ours."

He is concerned that Germans are unwilling to confront the issue: "It has not been politically correct until now to admit that we're in decline, that the Deutschland Modell is the wrong one."

The book argues with a brutal frankness that Germany needs to be completely restructured and that it has been poorly run since 1945.

The result, according to Mr Steingart, is a country where industry is on its knees, where the welfare state is deep in debt, whose inventive minds have been forced into exile, and whose citizens largely hate work.

Mr Steingart's book is part of a current trend. Germany has been wallowing for months in a deeply unattractive bout of self-loathing, with everything from performances on the football pitch to the low ranking of German schools in international education surveys attributed to an economic malaise.

One joke doing the rounds is that waiters in Berlin restaurants now ask diners which section they want to sit in: "Whingers or non-whingers?"

According to the author, there is little to laugh about. "The truth is," he notes, "we now have more debts, more social welfare recipients and soon very probably a higher number of unemployed (now at 4.5 million) than at any time in our post-war history."

Mr Steingart is not a sensationalist reporter with a chip on his shoulder. He is a political journalist with an economic background and is bureau chief in Berlin for the respected news magazine Der Spiegel.

The arguments in his book, which has sold 50,000 copies in two weeks, were garnered largely from interviews with Germany's senior managers, trade union leaders, economists and the head of research at Deutsche Bank.

His desk is piled with letters of response - mainly of praise - from captains of industry and ordinary Herr Schmidts. Government figures have come to him for advice.

Mr Steingart says a key reason for the problems lie in what he calls his "core-crust" theory.

The "core" consists of the innovators, the producers and the service providers, while the "crust" are those who contribute nothing to the economy.

At present the crust consists of the two thirds of Germans who are not in work. Germany, the land that produced people such as Einstein and Daimler and inventions such as aspirin, has for the first time been having to buy patents from abroad because it is insufficiently inventive.

"Since 1945 there has never been as small a core and as big a crust as there is today," Mr Steingart says.

According to the Federal Office of Statistics, the average German now spends only 13 per cent of his or her life in paid employment, while men devote 18 per cent to sport, television and visits to the pub and women 12 per cent to eating and personal hygiene. Britons work 250 hours more per year than Germans, Americans 350 hours more.

But the most important thing, Mr Steingart says, is to cut the punitive labour costs. Employers have to pay 42 per cent of a worker's wages in social costs, which has led to a huge increase in the number of illegal jobs.

It is for this reason that Germany is haemorrhaging jobs abroad at a rate comparable with no other industrial land. According to the Institute for Economic Research around 2.6 million jobs have been relocated. This week it was announced that the electronics giant Siemens was on the verge of moving 10,000 jobs to eastern Europe.

Surprisingly perhaps, Mr Steingart does not lay the blame at the door of Chancellor Gerhard Schroder whose personal popularity has sunk faster than that of any post-war leader as a result of the few economic reforms he has managed to persuade the country to implement.

Rather, he says the fault lies with Germany's post-war leader, Konrad Adenauer and his successors, who featherbedded the Germans rather than risk workers' protests and the return of an Adolf Hitler.

"Prosperity for all was the catchphrase not only of German politics, but also of British and US foreign policy towards Germany, to ensure that Hitler never returned," he said.

Now Germans' expectations are so high that generous benefits and social conditions are seen almost as a God-given right. A new £6 quarterly fee for visits to the doctor caused such outcry that the health minister, Ulla Schmidt, has been given no fewer than four bodyguards.

Despite the doom and gloom of his book, Mr Steingart says he is an optimist. "In its present state, Germany will not collapse but I'd say we have about two or three years in which to turn things around," he said.


TOPICS: Culture/Society; Extended News; Foreign Affairs; Germany
KEYWORDS: germany; socialism
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They just cannot admit that Socialism is a failure.
1 posted on 04/03/2004 3:02:22 AM PST by ijcr
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To: All

Donate Here By Secure Server

2 posted on 04/03/2004 3:03:33 AM PST by Support Free Republic (Your support keeps Free Republic going strong!)
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To: ijcr
They go to college until they're 30 and retire at 55.
3 posted on 04/03/2004 3:06:02 AM PST by dancusa
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To: ijcr
Niether can we. We should not get too happy about this. We need to radically reform our system and it will not be two easy. Our system is expanding, not contracting, and if the Dems ever get back their old power you will see more of this. It will take a resoltue leadership to build the national consesus that this requires. I fear that we shall never build it. If public monies cannot be reduced and what is left in public spending is not focused on science and technolgy spending we will be in trouble.
4 posted on 04/03/2004 3:14:36 AM PST by CasearianDaoist
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To: ijcr
It is simply not profitable or viable to have German workers, who cost considerably more than they produce

The joys of basic arithmetic.

The "core" consists of the innovators, the producers and the service providers, while the "crust" are those who contribute nothing to the economy.

I'm guessing "The Fountainhead" and "Atlas Shrugged" were recently translated into German?

5 posted on 04/03/2004 3:21:54 AM PST by garbanzo (Free people will set the course of history)
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To: ijcr
Wittingly or not, Bush SR.'s decision to unite the East Germans with W. Germany has really weakened them as a whole.

All those commies from E. Germany sent united Germany into the doldrums.
6 posted on 04/03/2004 3:24:58 AM PST by Finalapproach29er (" Permitting homosexuality didn't work out very well for the Roman Empire")
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To: ijcr
This can't be accurate. Everyone knows that with the reunification of the two Germanys the economic giant will lead a united Europe.
A united Europe led by Germany and France will displace the United states as the worlds economic powerhouse.
Ha Ha Ha
Just as Japan was going to do in the early 80s.
Ah Ha Ha Ha.
7 posted on 04/03/2004 3:28:38 AM PST by Joe Boucher (G.W. Bush in 2004)
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To: ijcr
Let's face reality. Germany is irrelevant.
My suggestion is:
Germany should be converted into an amusement park.
8 posted on 04/03/2004 3:34:17 AM PST by greasepaint
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To: ijcr
When I was in the USAF, I was stationed in Germany for two years during the late eighties. I spent the majority of my paychecks (American dollars) in the "local" German economy--along with hundreds of thousands of other American servicemen/women.
This article makes me wonder if the American military presence there--which is vastly drawn down now--wasn't helping to partially veil this nasty truth to the Germans of how utterly futile Socialistic policies are back then thanks to the large amount of U.S. dollars we where all pumping into their economy.
My time there was in service of a good cause (when I arrived the Berlin Wall was still up and going; by the time I'd left it was gone), of course. But now that all that's over (the Cold War) it looks like fiscal reality is slowly coming home to my German friends.
Having spent a couple of years among them I have no doubt that eventually they'll adapt and overcome, given the chance. The key will be to keep them away from any more of the sour, corrupting influence of the French...
9 posted on 04/03/2004 3:35:38 AM PST by A Jovial Cad ('In vino veritas!')
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To: ijcr
The History Channel should have a telethon for the Germans!
I mean, they've made the History Channel so very... interesting!!

No, seriously, the Germans will make it through this economic meltdown. But of course, we may see a few dozen Green Party members strung up on light poles along the Autobahn before it's all over.

Which will be fully documented on the History Channel in around three years. I'm glad they're on our side. I lived there for a long time. They are an amazing people. I loved it over there.


10 posted on 04/03/2004 3:42:26 AM PST by My Dog Likes Me
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To: ijcr
I have lived here for 4 years--and much of what he says is true. The welfare state is huge, and this is also a problem throughout Europe. He is also correct about the taxes---it is killing the economy here. He did not mention these contributors:

1. The immigrants into Germany, who enjoy even better benefits than working families. The people (referred to as Ausländers, are often from Russia and other parts of Eastern Europe. In some cases they are "ethnic" Germans, but whose families left Germany in the 19th century. Many of them bring large families with them, and they get more medical, food, housing, and cash benefits than you would imagine possible. This causes resentment, but everyone is afraid to talk about it. When I ask my German neighbors "What is up with that?" They reply "I don't know--guilt I guess....that whole Hitler thing--now we pay through the nose."

2. Most ordinary Germans are still hard working--especially the older ones and the ones from former West Germany. The East Germans are almost like a lobotimized race of different people altogether. Forty plus years of Communism turned them into the epitome of what the Democratic party wants for the rest of America. I cannot describe how awful it is.

11 posted on 04/03/2004 3:53:02 AM PST by SkyPilot
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To: Finalapproach29er
Wittingly or not, Bush SR.'s decision to unite the East Germans with W. Germany has really weakened them as a whole.

That was the German peoples decision, not any American Presidents. An American President may have been able to prevent it from happening (with a great deal of political arm twisting) but could never make it happen if it were not the will of the German people.

12 posted on 04/03/2004 3:59:37 AM PST by NeonKnight
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To: ijcr

SOCIALISM!

They've got Jimmy Carter malaise!

Proof-positive that under liberal regimes and philosophy, the masses are unproductive, lazy and suicidal.

Could it be because punishing taxes and the social safety net results in disincentives to work, create and take personal responsibility? Absolutely! No wonder Al Qaeda supports Socialists! They do the work for the terrorist enemy!

13 posted on 04/03/2004 4:35:27 AM PST by Enduring Freedom (Warrior Freepers Rule The Earth)
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To: Finalapproach29er
All those commies from E. Germany sent united Germany into the doldrums.

Well, (West) Germany was hardly an economic blast furnace before unification.

14 posted on 04/03/2004 4:36:31 AM PST by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
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To: Enduring Freedom
Let me say it, louder:

Socialism's punishing taxes and social safety net results in disincentives to work, create and take personal responsibility.

In other words, any country that takes up Socialism is on a path of self-termination, i.e. SUICIDE.

15 posted on 04/03/2004 4:38:23 AM PST by Enduring Freedom (Warrior Freepers Rule The Earth)
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To: Enduring Freedom
Socialism also leads to 'French' disease.

That is, a society of effeminate, soft, metrosexuals without any of the survival instincts bred on the real world streets of capitalism.

Socialism has always been about 'female' qualities.

The 'male' qualities, including security and self-defense, are bursting to overflowing in capitalism. But in Socialism, they are discouraged and even discriminated against. 'White male syndrome', where the strongest and best are passed over for positions of influence, was the order of the day under the weasel Clinton. You will also recall that 'Survival of the Fittest', an immutable law, was consciously reversed with special accessibility laws and other measures that encouraged deterioration of the gene pool.

Socialism is the death of a nation.
16 posted on 04/03/2004 4:46:46 AM PST by Enduring Freedom (Warrior Freepers Rule The Earth)
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To: My Dog Likes Me
The History Channel should have a telethon for the Germans! I mean, they've made the History Channel so very... interesting!!

That's why it's nicknamed "The Hitler Channel". Without Germany the 20th century would have been so dull.

17 posted on 04/03/2004 4:48:42 AM PST by jalisco555 ("The right to bear weapons is the right to be free" - A. E. Van Vogt)
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To: ijcr
This is how bad things have become in Germany: at the five-star Adlon hotel, close to the Brandenburg Gate, they dump the laundry into lorries every night and ship it 80 miles to Poland. There it is washed and the following day it is shipped back to Berlin.

Gee, if waiters and waitresses have been known to spit into food if they don't like the customer, what does a Polish laundry person do to German sheets and pillowcases?

18 posted on 04/03/2004 4:49:46 AM PST by White Eagle
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To: Finalapproach29er
Wittingly or not, Bush SR.'s decision to unite the East Germans with W. Germany has really weakened them as a whole.

Once the Wall fell German reunification was inevitable and unpreventable. Under the circumstances Bush and the others handled the situation quite well. It's up to the German people to fix the problems that they have created for themselves. It doesn't seem like they're up to it.

19 posted on 04/03/2004 4:51:31 AM PST by jalisco555 ("The right to bear weapons is the right to be free" - A. E. Van Vogt)
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To: ijcr
"Germany has been wallowing...in a deeply unattractive bout of self-loathing."
Uh...when this happens in Germany it's time to sound the alarm!
"we now have more debts, more social welfare recipients and soon...higher...unemployed...than at any time in our post-war history"
...and more Muslims.
"Prosperity for all was the catchphrase...to ensure that Hitler never returned"
A worthy goal, to be sure, and prosperity for all is probably the best insurance. However, the only way to provide prosperity for all is capitalism and free enterprise. This, of course, as ijcr sagely observes, requires an admission that socialism doesn't work. Not only does it not work, it destroys the economy, devastates the country, and paves the way for the return of a Hitler.

If Germans--and other Europeans--were willing to confront the issue and were able to break the taboo and admit the truth, they would see this.

"generous benefits and social conditions are seen almost as a God-given right."
Millions of people, on both sides of the Atlantic, can not understand the danger of big government.

If "Liberals"/Democrats have their way, the United States will be in as big a mess as Germany and the other European countries. In their policies and their rhetoric, they urge Americans to follow Europeans down the same path to destruction.

If the German people (whom I love, incidentally) wake up in time to save themselves, they will:

(1) Admit that socialism is a failure.

(2) Set up a summit conference with the Bush Administration for the purpose of strengthening the economic and political alliance between Germany and the U.S., with the aim of establishing some sort of NAFTA-type arrangement

(3) Dismantle socialism

(4) Re-establish capitalism and

(5) Slam the door on Muslim immigration.

Not only can they not admit that socialism is a failure, they also cannot admit that President Bush is the leader who can show them the way to prosperity, security, and ascendancy.
20 posted on 04/03/2004 4:54:45 AM PST by Savage Beast (Was it "Love Story" that was written about John Kerry? Or was it "Washington Square"?)
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