Germany is sinking under its own hatred. A country whose political philosophy rests on negativity cannot long survive. Wolfgang Munchau, in this month’s Spectator, outlines the problems that Germany has created for itself. First, the old New Germany:
|Looking back at the 1960s and 1970s, when I grew up in Germany, one of the most striking things was that everyone talked about work and money. The country was infuriatingly materialistic. The old West Germany felt more like an economy than a country. It used to have a proper currency, the Deutschmark, but it lacked a proper political capital. At a time when the British believed in incomes policies, capital controls and state ownership, Germany was as laissez-faire an economy as you could find anywhere in Europe. The Germans were the Americans of Europe, as a friend remarked at the time. Everyone was brimming with confidence and the superiority that comes with the belief that you are running the world’s most superior economy. The 1970s were the heyday of Germany’s social market economy, the economic equivalent of having your cake and eating it.|
|Unification was supposed to make Germany even stronger. The opposite happened….|
|When I returned to Germany in the 1990s, what surprised me most was not the poor performance of the economy — this I expected. I was most shocked by the extraordinary loss of self-confidence among the political and business elites, combined with a poisonous cocktail of the three big As: anti-Americanism, anti-Semitism and anti-capitalism.|
|The absence of a proper market economy means that most people and politicians have no gut-level understanding of how a market economy works. Most Germans do not negotiate their wages. They are paid according to fixed-rate tariffs set in negotiations between trade unions and employers’ associations. Most people have little exposure to the financial market and its products. Among wealthy nations, Germany has one of the lowest ownership rates of private homes, shares, mutual funds and credit cards. What makes Germany even more distinct is the universal belief that the primary responsibility of companies is not to make profits but to fulfil a moral duty to their employees and their communities.|
|A cartoon in the latest issue of the house journal of I.G. Metall, the German engineering union, depicts what appear to be American-Jewish investors as insects with long noses sucking the lifeblood out of the German economy. It is quite shocking to see how the present generation of centre-left leaders uses symbols of racism with such carelessness, considering that their predecessors — political leaders like Konrad Adenauer, Willy Brandt and Helmut Kohl — have spent decades dispelling the ghosts of the past and helping to create the image of a mature and normal democracy.|
So it may be that the lights are going out all over Europe. Again. This time, there may not be the American will to save them from themselves.
Hat tip: Barcepundit