Red or Blue?
I Love You, I'm Sorry — Your Weekend Special
3 Days Until the American Presidential Election
Deindustrialization in Germany
The Economists
Germany is facing a significant threat of deindustrialization, exacerbated by several factors, including the aftermath of Russia's invasion of Ukraine, rising energy prices, and a slowdown in China's economy. Martin Wansleben, head of the German Chamber of Trade and Industry (DIHK), highlighted that the signs of deindustrialization are becoming increasingly evident, particularly following alarming announcements from major companies like Volkswagen (VW). VW's representative recently indicated plans to close at least three factories in Germany and cut tens of thousands of jobs, marking a potential first for the 87-year-old carmaker in its home country. This comes in the wake of a staggering 64% drop in VW's net profit year-on-year for the third quarter, primarily due to weak sales in China. Other companies, such as Miele and Continental, have also announced job cuts and relocations, indicating a broader trend affecting Germany's industrial landscape.
The situation is compounded by a lack of investment confidence among businesses; a recent survey revealed that one-third of companies plan to reduce investment in Germany. As pessimism grows among industrial firms—only 19% rated their situation as "good"—there are calls for government intervention reminiscent of the successful Agenda 2010 reforms during a previous economic crisis. Chancellor Olaf Scholz convened a summit with business leaders to discuss industry challenges, but little concrete action has emerged from these discussions. The coalition government appears dysfunctional, raising doubts about its ability to implement effective policies to support the industrial sector. As Germany grapples with these pressing issues, the specter of deindustrialization looms large, threatening the economic model that has sustained it for decades.
Song Recommendation — I Love You, I’m Sorry by Gracie Abrams (Live Edition)
The way life goes
Joyriding down our road
Lay on the horn to prove that it haunts me
I love you, I'm sorry
Enjoy your weekend. Make sure to dress accordingly to the weather. Enjoy your Americano!