I grew up in Belgium in the 1980s and I remember very well that Belgium was far behind Germany in terms of income, public infrastructure, etc. and now it is far ahead of Germany in income and average living standard. One of my companies is headquartered in Gent and this is a filthy rich area, the salaries we pay in Belgium are far above what we pay in Germany, etc. So don’t complain about Belgium 
increased demand for our products
Yes, just look at the export statistics of Germany, significant growth in the last 10 years and if you drill deeper, you can see that the growth is almost entirely from the markets outside the European Union which refutes this nonsensical “beggaring its neighbors” theory that no serious economist supports. It shows that Europe can benefit from the evolving middle class in the Far East and elsewhere. The Chinese are not only competitors, they are also customers. Funniest example is formula (baby milk powder). There was a time where every shop in Germany had a maximum number of packets per customer because the Chinese would empty the stores and mail it to China as everybody with a bit of money went for the super expensive German formula following this scandal in China. This shows that once the Chinese have a bit of income, they become customers because they appreciate good products.
I am not complaining about Belgium – and will gladly agree we are today paying the price for pushing things too far in the past few decades*. Still, Belgium is not the only EU country where production is suffering.
Certainly Germany has always been clever at marketing their reputation of producing solid dependable quality – and have almost universally worked up to it, too.
PS one day, perhaps when some dust/smoke has settled down, you should tell me about being educated in Belgium in the 1980s. Must make for some fascinating stories. Myself passed through the process some 20 years earlier…
PPSS and no, I am not complaining, I’m only worried.
*even this very Tuesday, as the new government “under construction” announced the age for retirement will be increased from 65 to 67, there are some die-hards who earnestly protest – they are more than a couple of decades behind on reality, I’m afraid.
*even this very Tuesday, as the new government “under construction” announced the age for retirement will be increased from 65 to 67, there are some die-hards who earnestly protest – they are more than a couple of decades behind on reality, I’m afraid.
And the French have recently reduced (!!) it back to 60 for many people. Socialist madness, not decades but centuries behind the power curve.
@achim: I’m sure you know Belgium much, much better than I do, but aren’t there effectively two countries? Flanders – definitely prosperous, Wallonia – well, let’s just say, not so much….
I see production facilities closing down
Excellent documentary, albeit a little bit dated, but still relevant, unfortunately only in German and Chinese. Sorry, not really aviation related.
Certainly Germany has always been clever at marketing their reputation of producing solid dependable quality – and have almost universally worked up to it, too.
Germany sells based on image, and developing countries such as China are very image conscious. More experienced consumers buy on bang/buck. I used to buy a lot of European stuff but the bang over buck started to fade in the 90s – for me personally. I think I was ahead of the curve.
Japanese exports to the US have remained about level over the last 15 years.
Belgium’s economy must surely have benefited from unprecedented growth of centralized government, just like Washington DC.
I’ll retire when I can afford to, not when some bureaucrat decrees.
Germany sells based on image, and developing countries such as China are very image conscious.
The French and Italian export sectors are more brand-focused than the German, you can see that in the statistics. If you look at German exports by sector, obviously the car industry dominates which hides the fact that it sources parts from all over the world. Shortly after cars and machinery you find chemical commodities, hardly something driven by image. BASF is by far the largest chemical company these days. The few image-based well known consumer products are not really that important on the larger scale, it’s the fact that for some reason, mass production of commodities has remained competitive despite high energy and labor costs.
BTW: the graph you copied does not show the fading interest of US importers, it shows the 2008 meltdown. In Q1 2014, German exports to the US were over $30b, surpassing the pre-meltdown peak.
More experienced consumers buy on bang/buck.
Do I lack experience because I would rather walk than drive a Daihatsu/Kia/etc.? Image/design are very important, sometimes the only relevant thing. My favorite example is Red Bull — a tremendous success even though the product is total crap by all standards, selling at incredible prices while it costs nothing to produce (besides the can).
I’ll retire when I can afford to, not when some bureaucrat decrees.
For most people in Europe, the “afford to” and “bureaucrat decrees” coincide
Do I lack experience because I would rather walk than drive a Daihatsu/Kia/etc.?
It’s your money, you do what you like with it. Maybe at some point I’ll get to Korean cars, they’re good value but for now I’d rather spend a little more and buy Japanese – higher cost and quality, with about the same value. I’m still buying used European motorcycles, but the newest is a 2001 model bought unused a couple of years ago (I have eight motorcycles). The quality peak for European vehicles was in the 90s, judged against my criteria.
I don’t buy based on the intangible value of a brand, ever, generally any association with that drives me away at the speed of light – because I don’t like being viewed as stupid by people with good sense.
If my healthcare was dependent on insurance carried by a taxi driver, you can bet I’d be buying different healthcare pronto.
It works a little different here. Healthcare (which is mandatory for everybody and free for those who can’t afford it) will of course cover all the cost that is involved in rescueing you and saving your life and so on. But they will not cover the cost of living for the rest of your life in case the accident leaves you unable to work. And in any case they will try to recover all their expenses from the person who caused the injuries in the first place.
Make sure to read Gorge Pecker’s The Unwinding: An Inner History of the New America Great book with a lot of deep insight into all those developments you commented on
Healthcare (which is mandatory for everybody and free for those who can’t afford it) will of course cover all the cost that is involved in rescueing you and saving your life and so on. But they will not cover the cost of living for the rest of your life in case the accident leaves you unable to work. And in any case they will try to recover all their expenses from the person who caused the injuries in the first place.
I carry disability insurance, and don’t rely on taxi drivers to provide it for me.
I’ve had plenty of experience with healthcare in different countries, so no need to explain the (presumably German) system.
Achima, I think its more interesting in a forum to discuss reality as experienced with our own eyes. Its really not necessary to recommend bed time reading from your favorite authors.
