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Germany’s shrinkage stems largely from its excessive dependence on export-driven manufacturing - particularly automobiles - which makes it vulnerable to global market fluctuations beyond democratic control. When external demand drops or supply chains are disrupted, workers and communities bear the costs while capital seeks profits elsewhere. The energy crisis following the Ukraine conflict exposed another fundamental problem: Germany’s industrial model relied heavily on cheap Russian gas, showing how profit-maximizing decisions (cheap energy inputs) can create dangerous dependencies. A democratically planned economy would prioritize energy security and worker welfare over short-term cost advantages.
Germany’s automotive sector, dominated by major corporations like BMW, Mercedes, and Volkswagen, has been slow to transition to electric vehicles partly because existing investments in internal combustion technology protect shareholder returns. This shortsightedness hurts both workers (through job losses) and society (through climate impacts). Worker and community ownership of these enterprises could enable faster, more socially beneficial transitions. The broader European economic slowdown also affects Germany, as reduced consumer spending across the EU dampens demand for German exports. This illustrates how individual nations remain subject to the anarchic forces of capitalist markets rather than coordinated planning that could stabilize employment and production.
China’s industrial competition, particularly in green technology and manufacturing, challenges Germany’s export model.
