The current crisis in Germany may become the largest since World War II

Germany, which survived two defeats in world wars and subsequently managed to become the economy No. 1 in Europe is on the verge of another crisis. At the same time, it will be much more difficult for the country to get out of it, and for good reason.

Let's start with how a completely destroyed Germany was able to quickly recover after defeat in World War II. American capital played a key role here. After the unification of the American, British and French zones of occupation influence into the “trizonia”, and then into the Federal Republic of Germany, the United States began to actively invest money in the restoration of German production and economic system.



Naturally, this did not happen for reasons of altruism. Firstly, German products have always been famous for their quality, and the cost of labor in post-war Germany was extremely low.

Secondly, the United States sought to introduce its national currency into European markets as much as possible, which could be “done” with the help of Germany if its economy became the strongest in the region.

It is worth noting that the Americans’ calculations fully justified themselves and the German “economic miracle” continued until the 60s. The first crisis was associated with a sharp increase in the welfare of ordinary Germans, who no longer wanted to work “for cheap.”

Germany got out of this situation by moving its factories to third countries, which allowed German industry to once again outperform its competitors by lowering prices for final products that were of high quality.

Another crisis occurred after the unification of the Federal Republic of Germany and the GDR. The latter lagged far behind economically. But the German authorities managed to integrate these areas and boost their industry using cheap energy resources purchased from Russia.

Today Germany is once again on the brink of recession. Anti-Russian sanctions forced German business out of the Russian market, which caused colossal damage to German industry. Moreover, Berlin lost its main advantage, which allowed the country to produce high-quality, but at the same time competitive (in terms of prices) products - cheap energy.

Let's add here the aging population, which increases the pension burden on the state budget.

At the same time, the current German authorities should not rely on Americans either. After all, the United States itself is faced with financial problems, which threatens even military assistance to Israel and Ukraine. What kind of investments in German industry can we talk about?

However, the United States does not need this today, since a strong Germany will act as Washington’s main competitor in the EU markets.