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The problem with the electricity market is that regulations prevent investors from reacting to the price level by building competitive types of power plants. Messing with the pricing won't generate any electricity.
You are wrong. EU has aging demographics, it cannot consume, it has to export. With protectionist US and China, and high energy prices these industries will move to US or China. Siemens told it will not invest in Germany anymore, that is same with most other companies. It is really really bad in Germany, people don't see it but it will become obvious in next couple years.
While entire crisis in Europe is mostly Russian propaganda. I actually agree that idiotic green politics and reaching quotas instead actually investing in green technology, is way to doom. But it is only if no one stop Germans.
Deindustrialization in Europe has been a trend for decades, but it's accelerated in recent years, partly due to global competition and the rise of cheaper manufacturing options in Asia. Many European countries have shifted their focus from manufacturing to services and technology, which has helped some sectors but has also left a lot of traditional manufacturing hubs struggling
That's true, and the impact is very uneven across regions. Countries like Germany, with its strong manufacturing sector, have fared better than others. But even Germany faces challenges, as high energy costs and environmental regulations are putting pressure on industries like steel and automotive.
Energy costs are a huge factor, especially with the recent energy crisis linked to geopolitical issues. With Europe pushing for cleaner energy sources, there's a trade-off between achieving sustainability goals and keeping manufacturing industries competitive. Some worry that this could drive even more production outside Europe, particularly to countries with looser environmental regulations
And the social impact of deindustrialization is massive. Many industrial jobs are being replaced by service-sector roles, which often don’t pay as well or offer the same job security. This shift is fueling economic inequality and a sense of disillusionment in regions that once thrived on manufacturing
Exactly, and there’s a real political impact too. In regions hit hard by deindustrialization, we've seen a rise in populist movements. People feel like globalization has left them behind, and they’re pushing back against policies they believe prioritize global markets over local industries.
I wonder if re-industrialization could be possible with new technologies like automation and AI. There’s potential for creating high-tech manufacturing jobs in Europe, especially if governments provide the right support. But it will take a lot of investment and a real shift in education and training to prepare workers for these new types of industrial roles.
For a time I worked for a US firm that was doing energy trading. My role was that I built a high performance computing cluster that they used to track pretty much every node and line on the US power grids with history of same as well as current and historic weather conditions. They developed predictive models to help determine what trades to make. It soon became apparent that limited supply of transmission capacity was the biggest contributor to profits. In other words, for some players there is a strong disincentive to upgrade the power grid and they profit from keeping us all dangerously on the edge. Given my experience, I am always skeptical about claims that upgrading power systems is too expensive. Just one anecdotal observation. Respectfully submitted.
"Given my experience, I am always skeptical about claims that upgrading power systems is too expensive." The US power grid has never really been static. Investments in renewables has been outpacing other sources for some time. The problem with wind and solar is that "capacity" gets conflated with "output". There might be enough capacity to me the total need, but the output tends to hit when it's least needed. That's why wind and solar output continue to lag around 15% of output while having the capacity to deliver 60%.
I'm from Italy. The company I work for is closing for good next month. It goes on liquidation and all employers will be out of work. We work for the packaging industry. The company owner says that the turnover is down by -20% this year, followed by -17% from last year, -14% in 2022, -8% in 2021. We are all keen that this trend is not a crisis. It is a trend on market change. Our competitors suffer the same trend, and some of them from Belgium and Germany already close the production sites. The production costs are too high in Italy, and it is difficult to compete with foreign companies. We lost local suppliers making the logistics of the supply chain more challenging and now we see ourselves importing components from china. Nothing makes sense anymore. Politicians quack like ducks on TV while the EU economy is going bankrupt.
@@ricardomaggiore5518 The EU can either invent more new things that the world wants, or reduce their salaries and standard of living to match that of less inventive areas. Most of the Brussels regulation seems intent to prevent new invention, and thus the other outcome is the result.
So sorry to hear about your work!! The issue is, when you say it's a "market change" not a crisis, what that really means it's a crisis for YOUR geographical area, from where the companies are leaving(Italy, Belgium, etc.), and it's a BOON for asian companies that take over. You can call it "market change", but it destroys jobs and business in one place, and creating jobs and prosperity elsewhere. Your politicians are fools and people suffer for that.
@@giomjava well actually we used to cover the entire Mediterranean, France and Spain market. Our company saw the golden years between 2011 and 2016 exporting also to African countries and north America. Today customers looks for lower costs and we are just unable to invest in research and development of new products due the High production costs and low liquidity. Our European industry system is incompatible with a Chinese state funded economy. European wellness has an expensive tax cost if compared to an open world economy.
@@ricardomaggiore5518 that's all so deeply tragic! Could you clarify, why did the production costs rise? Why was there the liquidity issue? Is it because production costs rose, so the product price rose, risen prices unable to compete with Chinese (or other asian), so customer went elsewhere?
@giomjava the production costs have been always the same until the covid and the war up variation, also in the last 2 years new regulations and energy cost are unsustainable. Not to mention that our reference had to be changed with the asian competitors. With the first Chinese products hitting the market in 2015, they had low quality but the price was unbelievably low, not a real problem for us. The thing is that in the past 5 years we started to look for more efficiency and increase the quality to actually justify the higher cost when compared with asian products. It worked for a while. Then, after 2019/2020 we have noticed a strong quality improvement on Chinese products, always keeping low costs, not possible to follow if considering the traditional European industry system with high labor costs, tight regulations and obligations. For example we had to have an external consultant company to manage the industrial garbage. It costs a quite big monthly fee plus what we pay for the garbage recycling collection, transport, and handling. Another example is the consultant for labor safety and well being that monitors the excess of extra work time, personal needs and in association with unions and public authority. We paid the packaging tax and also other nonsense taxes. This makes the production expansion incredibly difficult and not cost efficient. Also investing in new robots for production was too expensive and we were not prepared to invest such amounts in a down trending market.(Not to mention that the robots themselves are produced by European manufacturers in china!) It feels like gambling . I feel that we were on the right human side, but no matter from where you see the problem, there is no solution. We are just not prepared for such competition and Europe will have to pass to a long deindustrialization period in the years ahead. It will happen in all industry sectors. Today the asian products invaded Europe, from pencils, clothing, house appliances, now starting with electric cars and finally the high tech industrial products such as our own products. They offer almost the same quality for half price, no way to compete. Europe should re-think the industrial strategy in a smarter way.
European countries should watch Italy, which appears to have started on the path of being a museum country, with an economy dependent on tours, museums, and pickpocketing.
Other than pickpocketing, I can't see what's wrong with this. Eternal exponential growth simply is not viable. How about enjoying what we have? Productivity rates are through the roof anyway, so there's little reason to keep slaving for corporate overlords and political leaders.
@@paarma1752there are many things wrong with this. The moment tourism slow down for one reason or another, we are fucked. And if you do not work in the turistic department is not like you are gonna feel any direct advantages (see the people living in the dolomites, only restaurants and hotels are happy, real people are just tired due to overtourism). As for what I can say by my experience, I worked in university in a STEM field and conditions are miserable, many are just leaving italy.
@@giu_vic I hear what you're saying, but I feel like these thoughts still originate from that consumeristic hyper-capitalistic mindset which only constant competion, acceleration and growth can satisfy. What I'm asking is, should we, as Europeans and earthlings, figure out something better? We have more than enough production, energy and everything else to guarantee everyone's basic needs already, and current advancements in automation and AI will improve the situation even further. Or at least they have potential to improve it, depending on how their benefits will be distributed.
Fun fact: Volkswagen announced these measures after distributing 4.5B € of its cash to shareholders, which means over 2B alone to the owner family. But brutally cutting tens of thousands of jobs is definitely the only way to save some money right now after they completely fucked up their vehicle lineup.
I was inspired by this channel to seek a career in rap, but tragically I learned that I have a congenital condition that causes me to only be able to write rap lyrics in the meter of the melody of Supercalifragalisticexpialidochis. Learning that car design can be performed with Powerpoint has opened my eyes to a new career path. So happy to have discovered this channel!
Hey Mr Boyle, Some of your younger viewers might only be aware of Will Smith as a movie star and the guy who slapped the host of the Oscars. So I felt it was important to note that Will Smith was initially part of popular RAP duo. (DJ Jazzy Jeff & the Fresh Prince), and thus this video does indeed align with your channels primary purpose. Cheers! ☘️☘️☘️
@@Dragon-Believer He is using "rap" in the sense people tend to use it to describe the musical genre as a whole. The correct definition of the genre, of course, is "hip hop". Rap is a form of vocal delivery used in hip hop, not the genre itself. I enjoy explaining this to other white people who don't care because it annoys them.
A factory in my city bought a giant, locomotive sized generator because for a time diesel was cheaper than grid electricity. So now instead of using electricity from an assortment of sources it was burning diesel in the middle of a city.
@@AndreiLiubinski The factory does have solar panels on the roof, but I don't remember if they were installed before or after electricity became so expensive. Also I can't imagine the panels would produce enough electricity for the whole factory.
Environmentalism, which most confuse as just a concern for the environment, is just a managerialist (cultural Marxism mixed with crony capitalism) propaganda ideology; one of many. They use career activist grifters to push fake cusses to gather funds and social power to then gain political power and influence everything.
Do we really want nuclear tech spreading everywhere? Even if accidents are incredibly rare they're catastrophic enough to be a serious problem to overcome. Plus they'll happen more as more plants open, especially when poorly run countries get them.
@ They’re not catastrophic, even the worst nuke accidents killed basically nobody compared to the countless who have died from fossil fuel pollution. And there are multiple newer designs that literally can’t meltdown no matter what, like pebble bed reactors.
Yeah!!!!!! (just don't mention Nord Stream) Or maybe Boyo needs to get a grip and best worry about the kaka that is about to hit the fan - AGAIN in the so-called "united" states of murica and king-CONNED-om...
The most stupid move from Europe over the last 40 years was accepting to transfer manufacturing knowledge (built thru high costing superior education and R&D) to China in promise of having access to it's domestic market. Now Europe has no longer manufacturing knowledge nor access to China's domestic market (it never really had). Screwed ! And frankly, i dont blame the politicians, but the doctrinal macroeconomist who counsel politicians at the time. They were a bunch of idiotic neoliberal coconuts who seemed to really believe that the whole population would get a superior degree and that we would build a dominant economy around it. No more need for common manufacturing sector. Yeah, shure.
it has been decided long ago that China and Asia will be used as the worlds manufacturers. Because human life there is cheap and they are less likely to rebel.
Building a company abroad is largely influenced by cheaper labor costs, so that its products are more competitive. What is stupid is Europe giving up cheap energy from Russia for the sake of US interests. What does Europe get from supporting US aggressive policies? Importing LPG from the US at a price 4 times more expensive. Don't forget, the German foreign minister promised Ukraine that Germany would support Ukraine as long as they needed it. Playing stupid games, get stupid prizes.
I agree with most all of your comment. I do wonder though if the economic advisors actually believed it themselves of merely saw the potential for their own enrichment via investment and consultancy contracts and fees?
Yeah!!!!!! (just don't mention Nord Stream) Or maybe Boyo needs to get a grip and best worry about the kaka that is about to hit the fan - AGAIN in the so-called "united" states of murica and king-CONNED-om...
As a "European" i think it is the bureaucracy from the EU. There are so many new laws, while having good intentions, makes it impossible to compete for small companies. If you have 1 guy working on satisfying EU regulations in a 10.000 people firm it is not a problem, if you need 1 guy for that in a 10 people firm then you can close your business because you cannot afford one unproductive worker. And if small business cannot exist, then small ones can never grow big and things start declining just like we see.
You build wealth by producing goods and services that other people are willing to pay for. All other strategies are attempts to scam an investor by obscuring this basic principle.
The "rise" in sick days in Germany is a statistical phenomenon: we introduced electronic sick day notification which now shows the real numbers; before that an employee had to notify his health insurance via sending in some paper; which a lot of people just didn't do. Even I never did it. ;) We are now just getting the real picture of an exhausted and underpaid work force with it's side effects. :)
They're not exhausted,they've been injured by "naturally appearing" covid and something "safe and effective" plus the newcomers are illiterate and lazy.
Exhausted?... Germans are among the least working people in the world. Average German works 2 whole months less each year compared to the average Us worker
@@philipp15055 Yeah. I work in the highest arcanes of IT and IT salaries in Europe kinda peak between 100k-150k per annum. I would earn 3x as much in the US. That being said, I would never want to raise my family in a junkie lawless 3rd world country such as the US.
Mr Boyle, you might protest that you're not a car designer but you've absolutely nailed the reasons why the VW ID Buzz will fail; it's far too expensive and doesn't at least have a PHEV option in the lineup. The other design aesthetics you mentioned are worth further study, too. Best be careful, Sir; people might get the idea that you know what you're doing! Seriously, keep up the great work.
Not having a phev option is not a problem. Pure bevs are usually better than bevs that also need to take different variations with combustion engines into account. But the fact that the buzz is super expensive is enough reason for it to not sell well. I could see a chinese company offering something similar for 1/2 the price or less
@@slopedarmor Agreed, given the ID3 is €15,000 in China because of the local competition gives you a good idea of whats coming. The Buzz should of been half the price with a genuine 300 mile range and at least 250kwh charging. Its also too small.
owned a hybrid. terrible. so complicated no one can work on them. great to lease if you often drive over 300 miles per day but terrible for long term owners who do less than 300 a day.
I as a european citizen actually am among the few owners of a clothingcompany/brand with manufacturing owned by me as well, while also being manufactured in the Netherlands. 🇳🇱 Lets bring it back guys
@@Silencer1337 I just want good t-shirts. That arent made five nanometers thin, and are 100% cotton. And have no stupid designs or logos on them. Its incredibly hard to find a plain white-t thats not see through
Ppl don't necessarily like the ipad on the dash. They hate the crapy yet overpriced infotainment systems being pushed out by car manufacturers. Another example of the auto industry's failure to address customer's needs.
_"They hate the crapy yet overpriced infotainment systems being pushed out by car manufacturers."_ Exactly. That's the very definition of the iPad on the dash.
I sometimes think about starting a business that specializes in removing those miserable creations to replace them with a well made traditional dashboard. People already hate those crappy knockoff iPads and it will get worse when they end support and get more obnoxious with subscription services.
Germany is Soooo Stupid. Among The MOST stupid people on the Planet. I expect Germany within a decade to leave The EU and apply for BRICKS membership simply because they will have little choice left. Lilium LV. ... ⬇ ... over 50 Million. Find 50 Million Bavaria, that's NOTHING! ... Nope ... won't do it.
Last I heard opening businesses in Germany can be a pain. I read to open a cup cake store 18 months of school required and then allowed to make only certain types of cup cakes. Same thing with a bread shop requires schooling and or apprenticeship time.
You will be "given" what you Need to live, as per decided by the overseers. They will have all the technologies, all the manufacturing, all the resources, and all the control. You will have nothing and you will be happy.
Nobody's going to be buying anything. You're going to go to work, at a job that you're forced to do, and get paid with a loaf of bread at the end of the day. Did you think "You will own nothing and be happy" was some kind of uplifting message? Do you think social credit scores are just so we know who's polite and who's not? Do you think that 15 minute cities (which was a crack pit conspiracy theory 4 years ago according to the media) are to make everybody more social with their neighbors? They're slowly pushing us all into the model they got straight out of 1984.
If no one works, no problem because there will be nothing to buy. To the experts do not mess with the economy, no theory works, only the economy that works so do not screw with the economy
@@WPPPP-kl5djfully agree. Russia delivered cheap gas and oil to the chosen countries to make them more dependent and finally take the control over their political system. We know Russians from centuries and will never trust them.
Having a tertiary education and "having a highly educated workforce capable of high tech production" are not the same thing. In the US we have plenty of people with worthless degrees delivering food for a living.
@@pupyfan69Also communications, political science, psychology, and anything ending with "studies" has extraordinary levels of unemployment in jobs that need degrees.
@@toomanymarys7355Psychologists are expected to have high job growth and are in demand, psychology isn't a useless degree it's just that a large number of psych students don't go on to do a masters/PHD and thus don't end up in the field, leading to overeducation. I also wouldn't see degrees as just a way to money, that's a very American way of thinking due to high university costs, sadly this has spread to The UK and elsewhere, being adopted by the right to invoke fear and worry. Universities should be hubs of learning, not money making. We see degrees and fields such as philosophy, art, political science and English as useless but some of the most influential people throughout time have studied and created in these fields. We have democracy thanks to philosophers and political scientists like Voltaire, Rousseau, etc. You might say that formal education isn't necessary when you can learn less applicable and specialist degrees online/on your own, but again this is misguided
Doesn´t surprise me, especially in Germany. It´s literally impossible to start a company, *any* company without VC or other substential financial backings. But even if you could, the running costs for compliance, documentation, etc. are huge, before you even start making profit. There´s zero reason to take that risk, even if you could, which most people can´t anyway.
It's certainly not just the difficulty of starting a business mind you. In the UK it's incredibly easy, about 50 quid and an online application, a few checks and you're done. Compliance, especially for a small business, isn't terribly burdensome, generally you just need to file accounts (though things get a little more complicated if you employ anyone). And yet the UK still struggles to nurture new successful businesses.
Here's a little joke from Wikipedia: "The Lisbon Strategy, also known as the Lisbon Agenda or Lisbon Process, was an action and development plan devised in 2000, for the economy of the European Union between 2000 and 2010. A pivotal role in its formulation was played by the Portuguese economist Maria João Rodrigues. Its aim was to make the EU "the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion", by 2010. It was set out by the European Council in Lisbon in March 2000. By 2010, most of its goals were not achieved. It has been succeeded by the Europe 2020 strategy."
Just blah blah from EU as always, and 2020 plan goals will not be met, and then more blah blah. It's sad as these unreasonable people are in the head of policy for the continent. Useless.
If only there was a form of energy that is clean, efficient and that has been around for over 50 years already! Maybe even something that can be done with uranium, I don’t know.
If only there was a pipline that could provide abundant and affordable natural gas. Oh there was. But the Euros let the US blow it up due to Russophobia. Fools.
If only this sci-fi energy technology technology you dream of was something even the French could safely and effectively implement, wouldn't that be incredible? I'm sure the Germans would be all over it, they're a very practical and technologicaly savvy people.
As an Australian the observations for Germany are applicable. Australia's industrial manufacturing sector has shrunk from 20% of the economy to around 6%. We are covering the landscape with solar panels and wind turbines from China, while ensuring massive unemployment.
As someone outside of Australia, I hear very little about things that are manufactured in Australia. I hear more about Australia's mining industry instead, where most of the raw materials will probably end up in China or South Korea.
I work in electricity sector in the US and can speak to the wholesale pricing systems here (similar to europe for much of the US). The organized wholesale markets were not set up at a time with highly abundant, zero marginal cost renewables. The financial structure investment decisions go through is leading to a bizarre set of incentives requiring more and more out of market intervention to maintain a reliable supply. It's a shame because the whole point of setting up these wholesale power organizations was to try to achieve cost savings for electricity consumers. Investment decisions for electricity supply is political, and we don't need to purposely create pricing systems that won't acknowledge that.
The electricity market was created to squeeze profit from consumers. Since 2 years in Romania the energy market is free but prices of electricity have gone up.
European politicians ,especially the EU ‘elites’, are to blame for this dire situation . The quality of political leadership over the last 20 years has been the lowest ever and they are killing Europe as a entrepreneurial destination
@@gibbogle Didn't Plato say something like "Democracy is a system in which three peasants and the wisest man on the world vote about something, and the peasants will always outvote the wise guy"? That was 2500 years ago.
I won't be surprised if it will turn out that the "climate change" threat has been blown out of proportion using misinformation for the economic benefit of China and Russia (gas export before the war in Ukraine)
At 24 minutes here you hit on the root of the problem - Europe decided to measure its emissions at source so they could artificially reduce emissions by simply moving manufacturing abroad. If Europe had chosen to measure emissions based on end consumer, they wouldn't face a scenario where making steel in India and then shipping it to Europe is treated as "lower emissions" than simply manufacturing it in Europe in the first place. Of course, measuring emissions this way would make Europe's progress toward green targets look much less impressive so nobody is interested in an honest accounting of emissions.
Negative / low electricity prices are a lie. In the UK, when the electricity price is low (lots of wind blowing) electricity is cheap to buy wholesale by the "electricity suppliers" and prices can even be negative. The wind farm operators are not paid negative prices for their electricity, they are paid prices set by the contract for difference agreements they have signed (effectively an agreement with the government). The difference between the contract for difference "strike price" and wholesale price is the recovered from consumers by the "electricity suppliers" and this money is passed to the wind farm operators. So negative / low electricity prices are a lie. The reason the wind farm operators are not making money is that the capital cost of the equipment is so high they need the CFD strike price to be paid else they make no returns.
Only for large farms. Mine makes money but my equipment is old as sh!t. It is more reliable though. I also don't spend any money on chemicals or fertilizers, a major cost for those who use them. People in the United States are starting to see the value in good food done naturally and will pay for it. Not that I'm way more expensive than a store.
@@normamimosa5991I would agree that mainstream journalism on anything moderately complex (normally financial or technical) appears to be inadequate. Saying that I have not read the economist article. I'm not subscribed.
A lot of manufacturing went to the USA and China yes. Especially where a lot of gas is used (BASF, Bayer...). There is also no more aluminium manufacturing (primary from ore), only recycling. Same with steel.
Europe had terrible growth even when they got cheap oil from Russia. It is very difficult for small and new businesses in the EU. It's all big old companies.
A renewable energy and grid integration expert here, Patrick you hit the nail, renewable energy is cheap but renewable power is really expensive, and you got it from reading just a few articles. I have suffer even trying to explain this concept to electrical engineers, university professors and so called “energy experts”. Thanks for making it cristal clear for all the people who are not experts in this subject, I really appreciated.
I didn't get that from reading the video. You mean that you can produce energy cheaply with solar panels but connecting it to the grid ups the cost massively so it's not cheap anymore? Why is that though? Isn't electricity electricity? It gets stored in batteries or something from a solar plant doesn't it, which I guess needs transforming to match the electricity on the grid, but isn't that a common problem that's easily fixed?
Renewable power is in fact not expensive, especially solar. I am even able to get myself a little solar power plant with 1kw peak for under 300 € without subvention. Grid integration is no problem there, like also with many bigger installations. And it gets extremely cheaper year by year. Please tell me, why other energy should be cheaper.
@@David-ud9juthis is not really an issue. In Germany you have so called Balkonkraftwerke. It's a small solar power plant for your home. You just plug it into an power outlet. It has a small inverter. You get these so cheap, that you can make profits of it after 2-3 years. They drop month for month in price, because solar energy gets cheaper. If you build larger arrays, they will be cheaper per kw. The electricity grid itself is expensive, but this is not a problem exclusive to renewables. Getting the grid to a constant voltage is also possible with renewable power, as Germany shows.
The European Commission pricing model is ridiculous. No wonder energy is higher in Europe. European energy could be the cheapest on the planet if it wasn’t for that policy, along with good investments.
@@TheRustyLM No, that wasn't his point, and anyway, nuclear has not been and will not be cheaper than solar & wind. The EC's pricing model distorts everything.
Wind power is by far the most expensive way to try to generate electricity. How do you imagine that Europe has cheap electricity production?? Who would produce electricity with a loss? Of course price must cover the marginal cost of the last kW in the electric grid. All prices of everything are set by marginal cost. Can you explain what you mean?
@@jonb5493 wind and solar CAPACITY is not production. Industry and modern living require steady consistent & reliable 24/7/365 power. Solar and wind do not provide even half of that.
@@bjorntorlarsson What I’m getting at is that the pricing model is ridiculous and hurts everyone, but also the whole of Europe would do good to diversify their energy production in ways that make sense for each country, including nuclear.
Think back to life in 2000. You may or may not have had a computer (my family certainly didn't). Mobile phones were still a luxury. Your car probably didn't have airbags or driver aids. Fridges were smaller. Subscription services might include a magazine. We've added a lot of cost to our lives in the last quarter century. If you cancel your internet, cancelled all your internet subscriptions, sold all your computers, canceled your mobile contract, swapped your car for something that didn't even come with a radio as standard, etc, you'd probably find yourself much more comfortable financially.
@@HALLish-jl5mo As someone born before the year 2000: You sound like someone who hasn't lived back then. Cars had more than just airbags. Technological gadgets may not have been "computers" or "mobile phones", but items like CD-players were definitely a thing. Different times, different luxuries. Real income hasn't grown at all.
@@KonsaiAsTai New cars in 2000 would have had airbags, but nobody complaining about the cost of living should have a new car. Airbags became common on new cars over the 1990s. My parents had a car without airbags until about 2011. It had a radio as standard, but you had to remember to extend the arial, so we usually used the cassette player. They replaced it with a car that didn’t originally come with a stereo, but the previous owner had installed one. And yes, CD players, cassette players and record players existed, and you’d probably have a Hi-Fi system if you had the space and money. Of course, a lot of people still have those things. Maybe not assembled that way with that intent, but plenty of people have a good set of speakers and some way to play a CD. Usually as part of their computer setup.
@@HALLish-jl5mo I had the Internet back in 2000. I had top of the line computers and also Blackberry. I am not sure how old you are, but you sound like you have no clue. The only difference between then and now? Governments have gotten a lot larger.
I heard that high-performant German workers go to the US, leading to the lack of labor. This forces German government to allow in 400,000 immigrants per year from now on. Of course, the aging population is another factor.
In minute 17, it is shown that the wholesale price of natural gas is not significantly different from 2018. However, the end price to the customer is four to five times higher than in the US. The real issue, as mentioned in minute 26, is created by the government in Germany and the EU through taxes, levies, and carbon fees. As Prof. Sinn calculated years ago, the demand for electricity in winter cannot be fully met by solar and wind power alone. The storage capacity would need to be immense, spanning several months, to store energy in August and then utilize it in March.
The US produces insane amounts of natural gas from fracking. It never has to be compressed or de-compressed, it just gets piped to areas that can burn it. It never has to be pumped as a liquid onto an ocean transport vessel. I'm sure European rules and regs add to your costs, but really, the fact that the US does not have to deal with ANY of the transport costs you do is a huge factor. If you look at the "Earth Night Sky" imagery for North Dakota or middle-of-nowhere Texas they both glow in the dark, brighter than Chicago or New York City. This is because it's cheaper to burn the natural gas there at the well than to bother capturing it for transport and sale. THAT is how much natural gas we have here right now!
@@markpukey8 Thats certainly true. But energy prices including gas prizes have allways been higher in Europe, especially in Germany, than in the US. This was despite the Northstream pipelines. The US tries to guarantee its citizens a comfortable life, Germany tends to higher prices in order to diminish CO2.
@@ein_Zweifelnder Fair enough. Sounds like Germany has it's own politicians that do things that SOUND GOOD... but have long term problems. The US just has different stupid politicians so we'll have different long term problems.
@@runswithraptors How do the Americans say: "In god we trust". Even the axis of the earth could flip. But to stay with the facts: in the last days Germany has faced a so called "Dunkelflaute". Due to fog no sun and no wind could produce electricity. There had been less than 1 % of the nominal production capacity, that could be harvested.
I think this is mainly due to global cost of living crisis. People can’t afford premium quality items and look for cheaper alternatives. German companies are notorious for their beurocratic overhead and managerial inefficiency. It was OK when people had money, but now purchasing power is shrinking it is harder to sell those items. Just thinking about it - VW is not able to sell cars. We are not talking BMW or Mercedes here. It would be interesting to see stats for other automakers as well.
@ I own BMW and I’m very happy so far. In Europe they are not as inaccessible as in US. But I’m not going to buy new one because of hybrid and EV hype. The one I have runs well and I’m afraid that those new models are made to be “disposable” after couple of years.
Hello. Russian here. Let me give you an example on premium quality items. Several years ago I bought Dyson (British) vertical vacuum because it was the best. Nowadays Dreame (Chinese) makes vertical vacuums better than Dyson and more than twice cheaper. There is literally zero point in buying Dyson nowadays. For the same price I can buy premium vertical vacuum from Dyson I can buy premium robot vacuum from Dreame. IMHO Europe is just being outcompeted.
@@neverknowsbest2879 The sanctions seems to have worked out well for you lol. You don't even have to ponder anymore just buy the Chinese item which nowadays is actually a quality product instead of the EU product which relies on reputation that is no loger relevant or true.
@@orthodox-mp6hv Well, the only Western products I do need are PC components. CPU and GPU specifically. If somehow Russia gets blocked from procuring those, we will need to switch to inferior Chinese alternatives. Pretty much everything else is available from non-Western countries, premium or not. I even switched from Korean-produced Japanese car to Russian-produced Chinese car because spare parts for the old car became gold. Overall, yea, I don't care about sanctions anymore. Only 2022 was turbulent.
Industrial output includes construction and mining as well as manufacturing (at least I think this is the conventional definition). Manfacturing is the most interesting part, given that interest rate manipulation driven real estate price bubbles at home is different from competitive manufacturing of goods mostly for export.
19:53 Well said. If VW are going to rely on their past design successes, then channel those designs in the new models. Otherwise, VW should go radical and new, rather than semi-retro.
This reminds me of a quote about the service industry. "It's a poor country, but the people survive by cutting each other's hair." Passing around the same dollar does not constitute an economy. Without manufacturing, there is nothing.
@@ms-jl6dl An economy that relies too heavily on service is extremely fragile, especially during times of crisis. You MUST have strong foundations in agriculture, pharma and some manufacturing.
@@ms-jl6dl banking - they need computers and stationary Health - medical equipment needs to be manufactured, medicine and a lot of chemicals they use needs to be manufactured Travel and tourism - boats, airplanes, and any vehicle, needs to be manufactured Entertainment industry - cameras, costumes, sound equipment, computers, etc. are all manufactured goods Art - there's paint for traditional and computers for digital artists, but I guess there are ways to not rely on manufacturing Not mentioned but food needs the agriculture industry. Home appliances, your phone, clothes, and things you buy in life whether for leisure or work, are manufactured products. Countries that thrive with just a strong service industry really are just pushing manufacturing, resource extraction, and farming elsewhere.
What you describe is called a service industry. And if the price raises now and then for ever more sophisticated hairstyles, which you can of course afford, backed by the increasing value of your booming business, you might even have a solid growth model!
24:31 "...one 42 gallon barrel of crude oil creates just under twenty gallons of gasoline...and the rest (more than half) is used to make everything from ink to antihistamines to fabrics... and the list goes on..." ❤❤❤
Not quite true. There are two tupes of crude oil: sweet oil and sour oil. Sweet oil is the most valuable as it produces the most fuel for gasoline, kerosine, etc. Sour oil produces more lubricants, chemicals, and the heaviest and dirtiest fuel oils making it less valuable. Which types a country has is determind by its geology. Thus, the US profuces more sour oil than sweet oil, and therefore exports much it to refineries in other parts of the world where sour oil is more common, and imports additional sweet oil. As the Middle East produces more sweet oil than sour, this is the reason why the US has pursued an active geopolitical policy in the region. So your quote doesnt reflect the true economic dynamics of the industry and the consequences.
@@CuriousCrow-mp4cx Fracked oil is the lightest, sweetest crude around. US 'traditional wells' are a fairly small percentage of US production these days, although it is pretty sour compared to the fracked stuff.
A good metric to determine energy costs is LCOE, however when it showed winds and solar was rather expensive, especially if required to provide base load, it went out of fashion in the media. However even LCOE does not factor in grid upgrades, which was the wind/solar solution to the high cost of providing base load. This moved the costs of wind/solar out of its LCOE and into the cost of the grid which made its LCOE values look a lot better. While it is true that if you threw a lot of money into provide a new high voltage grid across Europe then solar & wind could almost provide something resembling base load power. The issue which hit Germany was people did not want their sky filled with very high voltage lines, so even if you had the time and money it will be hard to get people to agree. The simplest solution was always to replace coal with nuclear and to take your time to build up energy storage solutions for wind and solar, which would mean the grid upgrades would be minimal. However as a rather famous German once said many years ago, “Es ist im Kriege alles sehr einfach, aber das Einfachste ist schwierig.“, or in english "Everything in war is very simple, but the simplest thing is difficult". This is an apt description of the current energy war we are engaged in.
To be fair, the U.S. military and German military have both been considering typewriters for military and cryptographic purposes to help proof personal information and communications against cyber attack. So sometimes it’s okay to go back. With that said, yeah going back to coal but taxing emissions on public vehicles is wonky
I think that you are missing out the Eastern part of the story. Many Eastern European countries have growing economies and there's probably a bigger story to tell about them rather than "they have lower standard of living and lower production costs, therefore they are catching up to the EU average"
What you didn't catch is near shoring. VW and Germany in general can shift manufacturing to Poland (the new, rising economic powerhouse - I know it's difficult to accept that a bunch of Slavs are out performing the western Ubermensch) or any other country with less red tape and more efficient workforce.
The inevitable consequence of growing income inequality was that mass production would become less viable, and it would be more profitable to produce luxury goods for a smaller number of people.
@@peterfireflylund - I do but I blame it on housing speculation, not greater income inequality. How social security operates as "tax on human labor" also helps, it should be based on taxes to income/profits, but housing costs are the worst contributor to rising labor costs, because nobody will work for less than it costs to survive ("law of salaries"). Unless the housing bubble is burst for good, salaries can't be lowered/contained.
It is a delight to wach your insightfull analysis and to get a variety of smart comments in addition. What a community this is! Cheers from Germany, the headquarter of open complans about itself
Patrick explains why energy prices in the EU are so much higher than in the USA because of EU pricing rules. But what I cannot undestand is why energy prices in the UK are also so high given that the UK is no longer a member of the EU and hence presumably not tied to the EU pricing system. Maybe Patrick could explain ?
So many comments - just want to say that I think your summation of the challenges facing Europe is really good. I think that there is only one thing that I would add is that the decision made to remove nuclear energy as a component of Germany's electricity generation is a mistake. It was a knee-jerk reaction to a situation on the other side of the world that had its roots in poor design. To stymie one's economy on that basis instead of learning and applying what one learns is ridiculous. It is something that they will have to reconcile and reverse - as you have noted, it is pretty counter productive for the environment to offload one's energy needs to third parties where standards may well be lower. Anyway, I enjoyed your video. Thanks for sharing.
Great video. RE: marginal pricing, the UK took the step of providing a ceiling on the revenue renewables/nuclear can make at times of price spikes (when the cost of gas is above something like 18p/kWh or thereabouts). It applies only to large producers i.e. not community wind farms. I guess this somewhat paid for the 'energy price guarantee' in retrospect. Nuclear seems to be the inevitable answer for baseload, and/unless batteries or cheaper hydrogen can be made available en masse.
It is so fantastic to see a youtube video where someone is speaking, without it being edited every 10. 20 . 30 second. Thumbs up very much for a person who can speak for as long as you can. It used to be normal. Thank you, it is really pleaseing o watch.
Cheap energy, in the form of the steam engine, and its successors, created the Industrial revolution. You need cheap energy, for a decent economy. And any accountant will tell you that you need to factor in all elements involved for any product. Renewables, like solar and wind, need to include bulk storage (batteries, etc), in their cost, as well as a robust grid, for distribution. Plus nuclear, is the existing carbon free energy source, with much of its costs involving government regs.
Yep, the video is 100% correct about the German reluctance to incur "debt". Some of that might be due to "debt" and "guilt" being the same word in German ("Schuld"), which might lead to a subtle bias in the sense that Germans might generally feel more "guilty" about debt, and therefore try to avoid it even in situations where there shouldn't be anything to feel guilty about.
There have been many, many examples in the past of batshit insane masses having far better lives and outcomes than they deserve... It does catch up to everybody, eventually.
Our economic data is straight out of Who’s Line Is It Anyway - its made up and the points don’t matter. We are getting ready for hyperinflation at this point, where we will probably pivot to some kind of equally worthless digital dollar successor and have a fun hot world war somewhere along the way
@@manara-stream Depends. I am talking VW's home market. A place where it had a huge market share, abundant used cars and spare parts and many "free" workshops with repair know.how. For decades VW was the safe longterm option, even if the starting price was higher than many imports. This has waned though in the last 10 years.
You can't advocate for the specialization of European export industries while simultaneously arguing against an export-led growth model. In a free trade environment, countries specialize in what earns the most income given their unique conditions; whether it’s access to cheap electricity, chemical feedstocks, education levels, or environmental factors. The only reason to avoid this strategy would be for political reasons, or geopolitical constraints as it implicitly results in a lower level of national affluence
Completely agree on the analysis of the German economy. The telegraph article felt like a mid-informed hit piece. Lots to be excited about in Germany, for example their Citric Acid exports, a growing market where our German friends are increasing their share with efficiency and scale.
It is not correct that it takes 120 days to obtain a business license in Germany. When I got mine, I simply got to the local City hall, filled out the forms, and received my license. Further documents (for taxes) were sent only 2-3 weeks later. Though I must admit, this was back in 2019 - perhaps it has way slowed down since then.
Finland also started up Europe's largest and newest reactor on the same day as Germany shut the last of theirs down. Are we learning anything yet, Germans?
You have a brilliant way of cracking a few jokes along the way whilst remaining totally deadpan . Some very relevant points made along the way & always an education !
It makes sense bc capitalists want to make profits twice from us: first as workers, then as customers, especially as survival customers of real state, which has been disparagedly high for decades. As such, we can't reproduce but there's a lot of fresh young people out there, in countries that haven't yet developed paternal responsibility and birth control. A worker is a worker is a worker... the more underdeveloped and legally precarious, the better, because they can't even complain.
You were spot-on with the VW camper mods. Luckily we in the UK lost a lot of manufacturing, thanks mainly to Margaret Thatcher, so in a sense we are ahead of the curve. Lucky us (says a mechanical engineer in a sarcastic tone).
You point out something I have sad for years. Solar is cheap provided you do not bill for redundancy, grid upgrades, and energy storage. Nuclear is expensive as long as you required it to bill for unrealistic insurance, and storing on site.
On site storage isn't expensive Nuclear in Europe is expensive for two 1: time to build 2: inexperience Back in the 1950-1990 period when Europe was building nukes it got reasonably good at it. For example Sizewell C in the auK was built in 6.5 years on budget and on time But with no new builds for over 30 years the experience was lost and the current new build is going to take twice as long and cost a lot of money A long term nuclear strategy in Europe would have to commit to 1 reactor per year forever as a min just not lose all the workforce and experience again 1 per year isn't a lot for all of Europe. That's only 80 reactors in total as they last about 80 years. But it's too much for any one nation so would need total EU support which it doesn't have
Not to mention the costly finance of deployement. A huge part of the cost of a nuclear power plant is nothing but interest payment to financial institutions which provides the loans to build.
@@kaya051285 - How is France, the most nuclearized country on Earth "inexperienced" on nuclear matters? They are the best experts Earth has produced on this matter! Last year, however, they had to nationalize the whole nuclear industry because it was rotting down into bankruptcy or even possible nuclear disaster, why? Because radiation eats everything, including materials and you can't realistically have a NPP running for many decades. Nuclear only works for a short time 20-30 years at best, then its obsolete and has to be dismantled (not that it solves the radiation problem in full but at least you don't have a ticking time bomb, that also pollutes nearby air and water, at your backyard anymore).
Tesla’s factory in Germany has on average 20% of its employees called in sick on any day. Some workers haven’t been to work all year. The European system is broken. Massive welfare and labour laws are terrible for growth
correct. Europe will become a marxist shit hole. The fumes of business spirit and capitalism wont fund these societies forever. They will become the places where Rich people come to holiday with poor natives.
Side note: The population of germany was estimated to shrink since the 1990s. But since every crisis in the greater region means an influx of ~1mn people the population kept growing. These might not be highly skilled workers but since most german born people go to univesities (~56%) these days it even somewhat fits in the job market. So i wouldnt worry about this part too much.
With every passing year I am wonder more and more, who exactly benefits from pushing towards unrealistic electricity production goals while also pushing for more electricity usage, like EV takeover.
To try everything Brilliant has to offer for free for a full 30 days, visit brilliant.org/patrick/. You’ll also get 20% off an annual premium subscription.
Can you post Link to draghis paper pls
The problem with the electricity market is that regulations prevent investors from reacting to the price level by building competitive types of power plants. Messing with the pricing won't generate any electricity.
You are wrong. EU has aging demographics, it cannot consume, it has to export. With protectionist US and China, and high energy prices these industries will move to US or China.
Siemens told it will not invest in Germany anymore, that is same with most other companies. It is really really bad in Germany, people don't see it but it will become obvious in next couple years.
@@lucasekstrom Just added it to the description. Thanks for the reminder!
While entire crisis in Europe is mostly Russian propaganda. I actually agree that idiotic green politics and reaching quotas instead actually investing in green technology, is way to doom. But it is only if no one stop Germans.
Deindustrialization in Europe has been a trend for decades, but it's accelerated in recent years, partly due to global competition and the rise of cheaper manufacturing options in Asia. Many European countries have shifted their focus from manufacturing to services and technology, which has helped some sectors but has also left a lot of traditional manufacturing hubs struggling
That's true, and the impact is very uneven across regions. Countries like Germany, with its strong manufacturing sector, have fared better than others. But even Germany faces challenges, as high energy costs and environmental regulations are putting pressure on industries like steel and automotive.
Energy costs are a huge factor, especially with the recent energy crisis linked to geopolitical issues. With Europe pushing for cleaner energy sources, there's a trade-off between achieving sustainability goals and keeping manufacturing industries competitive. Some worry that this could drive even more production outside Europe, particularly to countries with looser environmental regulations
And the social impact of deindustrialization is massive. Many industrial jobs are being replaced by service-sector roles, which often don’t pay as well or offer the same job security. This shift is fueling economic inequality and a sense of disillusionment in regions that once thrived on manufacturing
Exactly, and there’s a real political impact too. In regions hit hard by deindustrialization, we've seen a rise in populist movements. People feel like globalization has left them behind, and they’re pushing back against policies they believe prioritize global markets over local industries.
I wonder if re-industrialization could be possible with new technologies like automation and AI. There’s potential for creating high-tech manufacturing jobs in Europe, especially if governments provide the right support. But it will take a lot of investment and a real shift in education and training to prepare workers for these new types of industrial roles.
For a time I worked for a US firm that was doing energy trading. My role was that I built a high performance computing cluster that they used to track pretty much every node and line on the US power grids with history of same as well as current and historic weather conditions. They developed predictive models to help determine what trades to make. It soon became apparent that limited supply of transmission capacity was the biggest contributor to profits. In other words, for some players there is a strong disincentive to upgrade the power grid and they profit from keeping us all dangerously on the edge. Given my experience, I am always skeptical about claims that upgrading power systems is too expensive. Just one anecdotal observation. Respectfully submitted.
It's not that the problem is too expensive - it's that the parties expected to pay are not the ones who stand to profit from it.
@@vylbird8014 literally everyone in society profits from a reliable electricity supply.
@Excelnaught-f4b "profit" as in an accumulation of capital, not in the loose, all-encompassing idea of gaining more than you lose.
NZ in the past has artificially lowered lake levels to raise the wholesale price of electricity by feigning a shortage
"Given my experience, I am always skeptical about claims that upgrading power systems is too expensive."
The US power grid has never really been static. Investments in renewables has been outpacing other sources for some time. The problem with wind and solar is that "capacity" gets conflated with "output". There might be enough capacity to me the total need, but the output tends to hit when it's least needed. That's why wind and solar output continue to lag around 15% of output while having the capacity to deliver 60%.
I'm from Italy. The company I work for is closing for good next month. It goes on liquidation and all employers will be out of work. We work for the packaging industry. The company owner says that the turnover is down by -20% this year, followed by -17% from last year, -14% in 2022, -8% in 2021. We are all keen that this trend is not a crisis. It is a trend on market change. Our competitors suffer the same trend, and some of them from Belgium and Germany already close the production sites. The production costs are too high in Italy, and it is difficult to compete with foreign companies. We lost local suppliers making the logistics of the supply chain more challenging and now we see ourselves importing components from china. Nothing makes sense anymore. Politicians quack like ducks on TV while the EU economy is going bankrupt.
@@ricardomaggiore5518 The EU can either invent more new things that the world wants, or reduce their salaries and standard of living to match that of less inventive areas.
Most of the Brussels regulation seems intent to prevent new invention, and thus the other outcome is the result.
So sorry to hear about your work!!
The issue is, when you say it's a "market change" not a crisis, what that really means it's a crisis for YOUR geographical area, from where the companies are leaving(Italy, Belgium, etc.), and it's a BOON for asian companies that take over.
You can call it "market change", but it destroys jobs and business in one place, and creating jobs and prosperity elsewhere.
Your politicians are fools and people suffer for that.
@@giomjava well actually we used to cover the entire Mediterranean, France and Spain market. Our company saw the golden years between 2011 and 2016 exporting also to African countries and north America. Today customers looks for lower costs and we are just unable to invest in research and development of new products due the High production costs and low liquidity. Our European industry system is incompatible with a Chinese state funded economy. European wellness has an expensive tax cost if compared to an open world economy.
@@ricardomaggiore5518 that's all so deeply tragic!
Could you clarify, why did the production costs rise?
Why was there the liquidity issue?
Is it because production costs rose, so the product price rose, risen prices unable to compete with Chinese (or other asian), so customer went elsewhere?
@giomjava the production costs have been always the same until the covid and the war up variation, also in the last 2 years new regulations and energy cost are unsustainable. Not to mention that our reference had to be changed with the asian competitors. With the first Chinese products hitting the market in 2015, they had low quality but the price was unbelievably low, not a real problem for us. The thing is that in the past 5 years we started to look for more efficiency and increase the quality to actually justify the higher cost when compared with asian products. It worked for a while. Then, after 2019/2020 we have noticed a strong quality improvement on Chinese products, always keeping low costs, not possible to follow if considering the traditional European industry system with high labor costs, tight regulations and obligations. For example we had to have an external consultant company to manage the industrial garbage. It costs a quite big monthly fee plus what we pay for the garbage recycling collection, transport, and handling. Another example is the consultant for labor safety and well being that monitors the excess of extra work time, personal needs and in association with unions and public authority. We paid the packaging tax and also other nonsense taxes. This makes the production expansion incredibly difficult and not cost efficient. Also investing in new robots for production was too expensive and we were not prepared to invest such amounts in a down trending market.(Not to mention that the robots themselves are produced by European manufacturers in china!) It feels like gambling . I feel that we were on the right human side, but no matter from where you see the problem, there is no solution. We are just not prepared for such competition and Europe will have to pass to a long deindustrialization period in the years ahead. It will happen in all industry sectors. Today the asian products invaded Europe, from pencils, clothing, house appliances, now starting with electric cars and finally the high tech industrial products such as our own products. They offer almost the same quality for half price, no way to compete. Europe should re-think the industrial strategy in a smarter way.
We are turning off Nuclear power plants....we are idiots
Planned self-destruction. We're ruled by traitors.
We’re not idiots, we’re being played.
we're demolishing hydroelectric dams for salmon migration.
No you are idiots in believing that your politicians are well meaning and making bad choices at the ballots. Socialists and Green are the worst choice
@@justusbryce3392 If you know you're played and still play along. You're an idiot.
European countries should watch Italy, which appears to have started on the path of being a museum country, with an economy dependent on tours, museums, and pickpocketing.
I'm Italian and this is an accurate description... sadly
Other than pickpocketing, I can't see what's wrong with this. Eternal exponential growth simply is not viable. How about enjoying what we have? Productivity rates are through the roof anyway, so there's little reason to keep slaving for corporate overlords and political leaders.
@@paarma1752there are many things wrong with this. The moment tourism slow down for one reason or another, we are fucked. And if you do not work in the turistic department is not like you are gonna feel any direct advantages (see the people living in the dolomites, only restaurants and hotels are happy, real people are just tired due to overtourism). As for what I can say by my experience, I worked in university in a STEM field and conditions are miserable, many are just leaving italy.
@@giu_vic I hear what you're saying, but I feel like these thoughts still originate from that consumeristic hyper-capitalistic mindset which only constant competion, acceleration and growth can satisfy. What I'm asking is, should we, as Europeans and earthlings, figure out something better? We have more than enough production, energy and everything else to guarantee everyone's basic needs already, and current advancements in automation and AI will improve the situation even further. Or at least they have potential to improve it, depending on how their benefits will be distributed.
Italy's economy isn't sustainable, they need to reduce their taxes on pickpocketing or they will lose their competitive advantage.
Fun fact: Volkswagen announced these measures after distributing 4.5B € of its cash to shareholders, which means over 2B alone to the owner family. But brutally cutting tens of thousands of jobs is definitely the only way to save some money right now after they completely fucked up their vehicle lineup.
@@klti0815 the definition of capitalists grabbing the cash and running away
Now you’re a rap news AND a car design channel.
Hopefully Volkswagen will send me a bus to modify
@@PBoyleScania or bust, mate
Whips are a major part of rap culture.
I was inspired by this channel to seek a career in rap, but tragically I learned that I have a congenital condition that causes me to only be able to write rap lyrics in the meter of the melody of Supercalifragalisticexpialidochis. Learning that car design can be performed with Powerpoint has opened my eyes to a new career path. So happy to have discovered this channel!
Patrick; I totally agree with your suggested design upgrades of the bus!
Hey Mr Boyle, Some of your younger viewers might only be aware of Will Smith as a movie star and the guy who slapped the host of the Oscars. So I felt it was important to note that Will Smith was initially part of popular RAP duo. (DJ Jazzy Jeff & the Fresh Prince), and thus this video does indeed align with your channels primary purpose. Cheers! ☘️☘️☘️
Not really a rap duo. DJ Jazzy Jeff made the music. Smith was the rapper.
@@Dragon-BelieverI dare you to say that to Will's face, see what happens. 🖐🏾
lol no one cares weirdo
@@Dragon-Believer He is using "rap" in the sense people tend to use it to describe the musical genre as a whole. The correct definition of the genre, of course, is "hip hop". Rap is a form of vocal delivery used in hip hop, not the genre itself. I enjoy explaining this to other white people who don't care because it annoys them.
I'm here for the pokemon cards
A factory in my city bought a giant, locomotive sized generator because for a time diesel was cheaper than grid electricity. So now instead of using electricity from an assortment of sources it was burning diesel in the middle of a city.
What city? Lots of American data centres are running big generators, but with natural gas.
Why no PV?
wow wtf
@@AndreiLiubinski The factory does have solar panels on the roof, but I don't remember if they were installed before or after electricity became so expensive. Also I can't imagine the panels would produce enough electricity for the whole factory.
@@joewiddup9753 Not US, this is in central Europe.
How Environmentalists and Big Oil joined hands against Nuclear power is a topic that deserves several scientific papers😅
It had nothing to do with big oil. That's 100% on green idiots.
Environmentalism, which most confuse as just a concern for the environment, is just a managerialist (cultural Marxism mixed with crony capitalism) propaganda ideology; one of many.
They use career activist grifters to push fake cusses to gather funds and social power to then gain political power and influence everything.
Do we really want nuclear tech spreading everywhere? Even if accidents are incredibly rare they're catastrophic enough to be a serious problem to overcome. Plus they'll happen more as more plants open, especially when poorly run countries get them.
@ They’re not catastrophic, even the worst nuke accidents killed basically nobody compared to the countless who have died from fossil fuel pollution.
And there are multiple newer designs that literally can’t meltdown no matter what, like pebble bed reactors.
@@PorkChopAChunkyit doesn't have to be everywhere, just where necessary. Mainly where there are high electrical needs
Single-handedly solved Volkswagen's and Germany's economic problems with a power point slide. Patrick is The Man.
Ja, Der Patrick ist wunderbar!
Didnt trump call this out in 2016 and everyone called him stupid. Nc nc
Touché.
@@Sataka23clips no, he didn't he spouted other incoherent shit for his egoistic reasons.
@@mangalores-x_x WHAT?
VW completely forgot their clients. Greetings and respect from germany. :)
Yeah!!!!!! (just don't mention Nord Stream)
Or maybe Boyo needs to get a grip and best worry about the kaka that is about to hit the fan - AGAIN
in the so-called "united" states of murica and king-CONNED-om...
Their primary clients are in China now.
The most stupid move from Europe over the last 40 years was accepting to transfer manufacturing knowledge (built thru high costing superior education and R&D) to China in promise of having access to it's domestic market. Now Europe has no longer manufacturing knowledge nor access to China's domestic market (it never really had). Screwed !
And frankly, i dont blame the politicians, but the doctrinal macroeconomist who counsel politicians at the time. They were a bunch of idiotic neoliberal coconuts who seemed to really believe that the whole population would get a superior degree and that we would build a dominant economy around it. No more need for common manufacturing sector. Yeah, shure.
it has been decided long ago that China and Asia will be used as the worlds manufacturers. Because human life there is cheap and they are less likely to rebel.
The USA did the same.
@@santostv.USA transferred it's low tech.
Europe transferred it's seed corn.
Building a company abroad is largely influenced by cheaper labor costs, so that its products are more competitive.
What is stupid is Europe giving up cheap energy from Russia for the sake of US interests.
What does Europe get from supporting US aggressive policies? Importing LPG from the US at a price 4 times more expensive.
Don't forget, the German foreign minister promised Ukraine that Germany would support Ukraine as long as they needed it.
Playing stupid games, get stupid prizes.
I agree with most all of your comment. I do wonder though if the economic advisors actually believed it themselves of merely saw the potential for their own enrichment via investment and consultancy contracts and fees?
"More complicated than Will Smith's marriage" 😂
Honestly if kamala wins usa will be poor like europe. This week will change america forever
Yeah!!!!!! (just don't mention Nord Stream)
Or maybe Boyo needs to get a grip and best worry about the kaka that is about to hit the fan - AGAIN
in the so-called "united" states of murica and king-CONNED-om...
As a "European" i think it is the bureaucracy from the EU. There are so many new laws, while having good intentions, makes it impossible to compete for small companies. If you have 1 guy working on satisfying EU regulations in a 10.000 people firm it is not a problem, if you need 1 guy for that in a 10 people firm then you can close your business because you cannot afford one unproductive worker. And if small business cannot exist, then small ones can never grow big and things start declining just like we see.
+++
You build wealth by producing goods and services that other people are willing to pay for. All other strategies are attempts to scam an investor by obscuring this basic principle.
bro invest in my new crypto coin "goodsNservices"
it's kind of stunning to live in a society where I kinda can't afford its goods or services and rely largely on cheapened imports for my basic needs
Don’t worry sugar daddy America will always be there to fund europe lavish lifestyle
@@10.huynhphathuy8 All while decadent, backwards Europeans think themselves the peak of humanity.
@@10.huynhphathuy8Trump: hello there.
Great to see you joining the new era for Eropean industry that is focused on PowerPoint engineering.
Still better than "prompt engineering".
America needs trump
@@Sataka23clips Absolutely not.
@@averagegeek3957 we get it, we need to send more money overseas to foreign militaries. too bad, bud.
The "rise" in sick days in Germany is a statistical phenomenon: we introduced electronic sick day notification which now shows the real numbers; before that an employee had to notify his health insurance via sending in some paper; which a lot of people just didn't do. Even I never did it. ;)
We are now just getting the real picture of an exhausted and underpaid work force with it's side effects. :)
Yeah, the pay here in europe sucks, and im earning more then the average person.
If I would do the same job in the US, I would make 3x as much.
They're not exhausted,they've been injured by "naturally appearing" covid and something "safe and effective" plus the newcomers are illiterate and lazy.
@@philipp15055 Hey man, at least your pay sucks, so you might get a happy ending. Not everyone is lucky enough to be paid in whores.
Exhausted?... Germans are among the least working people in the world. Average German works 2 whole months less each year compared to the average Us worker
@@philipp15055
Yeah. I work in the highest arcanes of IT and IT salaries in Europe kinda peak between 100k-150k per annum. I would earn 3x as much in the US.
That being said, I would never want to raise my family in a junkie lawless 3rd world country such as the US.
Mr Boyle, you might protest that you're not a car designer but you've absolutely nailed the reasons why the VW ID Buzz will fail; it's far too expensive and doesn't at least have a PHEV option in the lineup. The other design aesthetics you mentioned are worth further study, too. Best be careful, Sir; people might get the idea that you know what you're doing!
Seriously, keep up the great work.
Not having a phev option is not a problem. Pure bevs are usually better than bevs that also need to take different variations with combustion engines into account. But the fact that the buzz is super expensive is enough reason for it to not sell well. I could see a chinese company offering something similar for 1/2 the price or less
@@slopedarmor Agreed, given the ID3 is €15,000 in China because of the local competition gives you a good idea of whats coming. The Buzz should of been half the price with a genuine 300 mile range and at least 250kwh charging. Its also too small.
owned a hybrid. terrible. so complicated no one can work on them. great to lease if you often drive over 300 miles per day but terrible for long term owners who do less than 300 a day.
I as a european citizen actually am among the few owners of a clothingcompany/brand with manufacturing owned by me as well, while also being manufactured in the Netherlands. 🇳🇱 Lets bring it back guys
I'll pay you double than the other guy if I can have clothes again where the seams don't rip apart when looking at them too intensely.
See if america does not vote trump america is doomed
@@Silencer1337
Isn't that a matter of diet control ?
@@aryaman05 No, it's a quaity problem. Some clothes literally falll apart after like 3-4 washing, it's ridiculous.
@@Silencer1337 I just want good t-shirts. That arent made five nanometers thin, and are 100% cotton. And have no stupid designs or logos on them. Its incredibly hard to find a plain white-t thats not see through
Oh man when Patrick says “It’s a mini bus, not an S class” I laughed so hard. It’s so true, I was thinking it but I just couldn’t verbalize it.
Same here haha... They think the kind of people who can afford a 70k car will buy THAT? Maybe in San Francisco...
Ppl don't necessarily like the ipad on the dash. They hate the crapy yet overpriced infotainment systems being pushed out by car manufacturers.
Another example of the auto industry's failure to address customer's needs.
That’s what “iPad on dash means” not literally but figuratively
_"They hate the crapy yet overpriced infotainment systems being pushed out by car manufacturers."_
Exactly. That's the very definition of the iPad on the dash.
The iPad on the dash trend is there because it's cheaper than wiring everything to individual buttons, it was never about consumer needs.
I sometimes think about starting a business that specializes in removing those miserable creations to replace them with a well made traditional dashboard. People already hate those crappy knockoff iPads and it will get worse when they end support and get more obnoxious with subscription services.
@@XandateOfHeaven But you still gotta wire everything to the iPad. I don't think it's actually cheaper, it's just more "on trend".
Germany is now getting the full Detroit treatment, as described in E. Michael Jones' "The Slaughter of Cities". The same forces are at play.
Germany is Soooo Stupid. Among The MOST stupid people on the Planet. I expect Germany within a decade to leave The EU and apply for BRICKS membership simply because they will have little choice left.
Lilium LV. ... ⬇ ... over 50 Million. Find 50 Million Bavaria, that's NOTHING! ... Nope ... won't do it.
Juden
@@9.GermaniaI see you haven’t read the book in question.
Finish the reading assignment and get back to us with a more informed opinion.
@@SigFigNewtonunfortunately I don't think he can read
@@SigFigNewton He's got the symbol of weird white americans: a custom pepe oc pfp
he 100% cannot read and is afraid of anyone who isn't a png of tits
Last I heard opening businesses in Germany can be a pain. I read to open a cup cake store 18 months of school required and then allowed to make only certain types of cup cakes. Same thing with a bread shop requires schooling and or apprenticeship time.
If nobody works and earns money, who the hell is gonna buy all their stuff?
You will be "given" what you Need to live, as per decided by the overseers.
They will have all the technologies, all the manufacturing, all the resources, and all the control.
You will have nothing and you will be happy.
Nobody's going to be buying anything.
You're going to go to work, at a job that you're forced to do, and get paid with a loaf of bread at the end of the day.
Did you think "You will own nothing and be happy" was some kind of uplifting message?
Do you think social credit scores are just so we know who's polite and who's not?
Do you think that 15 minute cities (which was a crack pit conspiracy theory 4 years ago according to the media) are to make everybody more social with their neighbors?
They're slowly pushing us all into the model they got straight out of 1984.
UBI honestly u wonder why they hate trump
@@paulachenkonobert3802 fuck that
If no one works, no problem because there will be nothing to buy. To the experts do not mess with the economy, no theory works, only the economy that works so do not screw with the economy
You should put an iPad on one of those shelves in the background so that Softbank will invest in the channel.
I think they will so so regardless if Patrick would get 5 minutes of Masayoshi Son's time. After a beer or something
Sabotage of Nord Steam 2 might be one of the biggest factor.
Obviously 😊
Building the nord stream was the biggest sabotage
Nord Stream 2 was never operational.
@@WPPPP-kl5djfully agree. Russia delivered cheap gas and oil to the chosen countries to make them more dependent and finally take the control over their political system. We know Russians from centuries and will never trust them.
russian uses energy as a weapon for years. It’s a huge dependency and national risk, but it’s fine for such fools like you
Having a tertiary education and "having a highly educated workforce capable of high tech production" are not the same thing. In the US we have plenty of people with worthless degrees delivering food for a living.
what worthless degrees?
@@pupyfan69social studies, arts,English, philosophy
@@pupyfan69Also communications, political science, psychology, and anything ending with "studies" has extraordinary levels of unemployment in jobs that need degrees.
@@arynasabalenka3173English teachers major in English.
@@toomanymarys7355Psychologists are expected to have high job growth and are in demand, psychology isn't a useless degree it's just that a large number of psych students don't go on to do a masters/PHD and thus don't end up in the field, leading to overeducation.
I also wouldn't see degrees as just a way to money, that's a very American way of thinking due to high university costs, sadly this has spread to The UK and elsewhere, being adopted by the right to invoke fear and worry.
Universities should be hubs of learning, not money making. We see degrees and fields such as philosophy, art, political science and English as useless but some of the most influential people throughout time have studied and created in these fields. We have democracy thanks to philosophers and political scientists like Voltaire, Rousseau, etc.
You might say that formal education isn't necessary when you can learn less applicable and specialist degrees online/on your own, but again this is misguided
Doesn´t surprise me, especially in Germany. It´s literally impossible to start a company, *any* company without VC or other substential financial backings.
But even if you could, the running costs for compliance, documentation, etc. are huge, before you even start making profit.
There´s zero reason to take that risk, even if you could, which most people can´t anyway.
It's certainly not just the difficulty of starting a business mind you. In the UK it's incredibly easy, about 50 quid and an online application, a few checks and you're done. Compliance, especially for a small business, isn't terribly burdensome, generally you just need to file accounts (though things get a little more complicated if you employ anyone). And yet the UK still struggles to nurture new successful businesses.
And then people say that trump is the idiot…
@@cristianflorinionescu1849that still holds true in every economy
@@cristianflorinionescu1849 mind, trump is pro rich, not pro business
Don't forget taxes.
Here's a little joke from Wikipedia:
"The Lisbon Strategy, also known as the Lisbon Agenda or Lisbon Process, was an action and development plan devised in 2000, for the economy of the European Union between 2000 and 2010. A pivotal role in its formulation was played by the Portuguese economist Maria João Rodrigues.
Its aim was to make the EU "the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion", by 2010. It was set out by the European Council in Lisbon in March 2000. By 2010, most of its goals were not achieved. It has been succeeded by the Europe 2020 strategy."
I have decided to become a trillionaire and to live 350 years. Isn't that fantastic? Please stop the applause.
Just blah blah from EU as always, and 2020 plan goals will not be met, and then more blah blah. It's sad as these unreasonable people are in the head of policy for the continent. Useless.
@@TheRimBrakeGuy Unreasonable people who never got a single damn vote
If only there was a form of energy that is clean, efficient and that has been around for over 50 years already! Maybe even something that can be done with uranium, I don’t know.
No one else does either. Ignorance is bliss, people seem happy
If only there was a pipline that could provide abundant and affordable natural gas.
Oh there was.
But the Euros let the US blow it up due to Russophobia.
Fools.
If only this sci-fi energy technology technology you dream of was something even the French could safely and effectively implement, wouldn't that be incredible? I'm sure the Germans would be all over it, they're a very practical and technologicaly savvy people.
A fart is better than a log in the fireplace.
Yeah imagine how save it could be with German engineering 😂
As an Australian the observations for Germany are applicable. Australia's industrial manufacturing sector has shrunk from 20% of the economy to around 6%. We are covering the landscape with solar panels and wind turbines from China, while ensuring massive unemployment.
As someone outside of Australia, I hear very little about things that are manufactured in Australia. I hear more about Australia's mining industry instead, where most of the raw materials will probably end up in China or South Korea.
I work in electricity sector in the US and can speak to the wholesale pricing systems here (similar to europe for much of the US). The organized wholesale markets were not set up at a time with highly abundant, zero marginal cost renewables. The financial structure investment decisions go through is leading to a bizarre set of incentives requiring more and more out of market intervention to maintain a reliable supply. It's a shame because the whole point of setting up these wholesale power organizations was to try to achieve cost savings for electricity consumers. Investment decisions for electricity supply is political, and we don't need to purposely create pricing systems that won't acknowledge that.
Trump is only hope for america if trump loses then all.industry is going to.china. america will trully be fucked
The electricity market was created to squeeze profit from consumers. Since 2 years in Romania the energy market is free but prices of electricity have gone up.
Wasn't that just how ENRON gamed the system??!!
European politicians ,especially the EU ‘elites’, are to blame for this dire situation . The quality of political leadership over the last 20 years has been the lowest ever and they are killing Europe as a entrepreneurial destination
Too many perks. Too high salaries. Burgeoning bureaucracy. More and more overpaid people sucking off the productive tax payers.
Actually I blame the voters - they get the politicians they deserve.
@@gibbogle - The voters are directed mostly by the media, who owns the media owns the vote.
So you're saying J**s want to propagandize the populous and direct the politicians, all so they can remain in their ivory towers?
@@gibbogle Didn't Plato say something like "Democracy is a system in which three peasants and the wisest man on the world vote about something, and the peasants will always outvote the wise guy"? That was 2500 years ago.
Unfortunately as a European... it's a nice continent to visit during summer and duck off the rest of the year because it's a bureaucratic hellhole🤦.
Even Europeans desperately need to escape their cities for a solid month of the year so they don't go mad. 😂
Really excited for the latest news in rap from the most reputable source out there
I'm shocked to learn there are still other sources publishing. WHY?
this is where i get my Diddy news
25:08 "Shiploads of Chinese solar panels" I had to re-watch. That was well done.
I won't be surprised if it will turn out that the "climate change" threat has been blown out of proportion using misinformation for the economic benefit of China and Russia (gas export before the war in Ukraine)
At 24 minutes here you hit on the root of the problem - Europe decided to measure its emissions at source so they could artificially reduce emissions by simply moving manufacturing abroad. If Europe had chosen to measure emissions based on end consumer, they wouldn't face a scenario where making steel in India and then shipping it to Europe is treated as "lower emissions" than simply manufacturing it in Europe in the first place. Of course, measuring emissions this way would make Europe's progress toward green targets look much less impressive so nobody is interested in an honest accounting of emissions.
Negative / low electricity prices are a lie. In the UK, when the electricity price is low (lots of wind blowing) electricity is cheap to buy wholesale by the "electricity suppliers" and prices can even be negative. The wind farm operators are not paid negative prices for their electricity, they are paid prices set by the contract for difference agreements they have signed (effectively an agreement with the government). The difference between the contract for difference "strike price" and wholesale price is the recovered from consumers by the "electricity suppliers" and this money is passed to the wind farm operators. So negative / low electricity prices are a lie.
The reason the wind farm operators are not making money is that the capital cost of the equipment is so high they need the CFD strike price to be paid else they make no returns.
Only for large farms. Mine makes money but my equipment is old as sh!t. It is more reliable though. I also don't spend any money on chemicals or fertilizers, a major cost for those who use them. People in the United States are starting to see the value in good food done naturally and will pay for it. Not that I'm way more expensive than a store.
Yes, but "The Economist," fallen, left-wing periodical says differently. LOL!
@@normamimosa5991I would agree that mainstream journalism on anything moderately complex (normally financial or technical) appears to be inadequate. Saying that I have not read the economist article. I'm not subscribed.
@@cfulthorpe The Economist was once a top periodical. I knew the editor at the time. Sadly, the tentacles of woke liberalism grabbed it. LOL.
A lot of manufacturing went to the USA and China yes. Especially where a lot of gas is used (BASF, Bayer...). There is also no more aluminium manufacturing (primary from ore), only recycling. Same with steel.
usa????
Europe had terrible growth even when they got cheap oil from Russia. It is very difficult for small and new businesses in the EU. It's all big old companies.
@@picest_ yes. Much of European petrochemical production went to USA for the super cheap natural gas, and DC’s incentives.
Lol, I'm waiting for the U.S. manufacturing to increase. It's all still going to Asia.
European companies opening up plants on US soil also counts as “manufacturing went to USA”. Don’t think as GM is better, think BMW makes cars in US.
A renewable energy and grid integration expert here, Patrick you hit the nail, renewable energy is cheap but renewable power is really expensive, and you got it from reading just a few articles. I have suffer even trying to explain this concept to electrical engineers, university professors and so called “energy experts”. Thanks for making it cristal clear for all the people who are not experts in this subject, I really appreciated.
and your degree is...? economics?
I didn't get that from reading the video. You mean that you can produce energy cheaply with solar panels but connecting it to the grid ups the cost massively so it's not cheap anymore? Why is that though? Isn't electricity electricity? It gets stored in batteries or something from a solar plant doesn't it, which I guess needs transforming to match the electricity on the grid, but isn't that a common problem that's easily fixed?
@David-ud9ju intermittency means you need expensive energy storage technology, so while panels are cheap, batteries aren't
Renewable power is in fact not expensive, especially solar. I am even able to get myself a little solar power plant with 1kw peak for under 300 € without subvention. Grid integration is no problem there, like also with many bigger installations. And it gets extremely cheaper year by year.
Please tell me, why other energy should be cheaper.
@@David-ud9juthis is not really an issue. In Germany you have so called Balkonkraftwerke. It's a small solar power plant for your home. You just plug it into an power outlet. It has a small inverter. You get these so cheap, that you can make profits of it after 2-3 years. They drop month for month in price, because solar energy gets cheaper.
If you build larger arrays, they will be cheaper per kw.
The electricity grid itself is expensive, but this is not a problem exclusive to renewables. Getting the grid to a constant voltage is also possible with renewable power, as Germany shows.
If Volkswagen would just offer the Golf with a manual transmission their struggles would be over.
yes :)
I'm sure they can turn things around with a few more regulations, environmental policies and some more taxes.
They will certanly try.
Classic EU strategies, their political correctness knows no bounds
Damn, this guy's reasonableness is like a breath of fresh air in the stench of constant panic rethoric coming from legacy media.
Giving away the value chain and keeping just the slim retail margins. It is nice to move the environmental problems out of site.
Those problems are not mitigated because they relocate ….the ignorance is monumental
The European Commission pricing model is ridiculous. No wonder energy is higher in Europe. European energy could be the cheapest on the planet if it wasn’t for that policy, along with good investments.
European energy could be the cheapest, yes, had it invested in a lot more nuclear, a lot less solar & wind. AND the pricing models & metering.
@@TheRustyLM No, that wasn't his point, and anyway, nuclear has not been and will not be cheaper than solar & wind. The EC's pricing model distorts everything.
Wind power is by far the most expensive way to try to generate electricity. How do you imagine that Europe has cheap electricity production?? Who would produce electricity with a loss? Of course price must cover the marginal cost of the last kW in the electric grid. All prices of everything are set by marginal cost. Can you explain what you mean?
@@jonb5493 wind and solar CAPACITY is not production.
Industry and modern living require steady consistent & reliable 24/7/365 power.
Solar and wind do not provide even half of that.
@@bjorntorlarsson What I’m getting at is that the pricing model is ridiculous and hurts everyone, but also the whole of Europe would do good to diversify their energy production in ways that make sense for each country, including nuclear.
1:40 “Real income has grown…” Amazing statistics. Like String Theory of physics. Look amazing on paper, no basis in reality we live in.
Laughing all the way to the bank.
Think back to life in 2000.
You may or may not have had a computer (my family certainly didn't). Mobile phones were still a luxury.
Your car probably didn't have airbags or driver aids.
Fridges were smaller.
Subscription services might include a magazine.
We've added a lot of cost to our lives in the last quarter century.
If you cancel your internet, cancelled all your internet subscriptions, sold all your computers, canceled your mobile contract, swapped your car for something that didn't even come with a radio as standard, etc, you'd probably find yourself much more comfortable financially.
@@HALLish-jl5mo As someone born before the year 2000: You sound like someone who hasn't lived back then. Cars had more than just airbags. Technological gadgets may not have been "computers" or "mobile phones", but items like CD-players were definitely a thing. Different times, different luxuries. Real income hasn't grown at all.
@@KonsaiAsTai New cars in 2000 would have had airbags, but nobody complaining about the cost of living should have a new car. Airbags became common on new cars over the 1990s. My parents had a car without airbags until about 2011. It had a radio as standard, but you had to remember to extend the arial, so we usually used the cassette player. They replaced it with a car that didn’t originally come with a stereo, but the previous owner had installed one.
And yes, CD players, cassette players and record players existed, and you’d probably have a Hi-Fi system if you had the space and money. Of course, a lot of people still have those things. Maybe not assembled that way with that intent, but plenty of people have a good set of speakers and some way to play a CD. Usually as part of their computer setup.
@@HALLish-jl5mo I had the Internet back in 2000. I had top of the line computers and also Blackberry. I am not sure how old you are, but you sound like you have no clue. The only difference between then and now? Governments have gotten a lot larger.
How the Germany minister of economics said: Its not true that businesses in Germany are going bankrupt. They're just stop working!
Yes, newsspeak a la Werner von Braun on the V2's: "We aimed for ze sky, but sometimes we hit London".
Is that pork? No it is ham.
Ah, of course, the floor is made out of floor.
Geniuses are running thethe country just like the United States and the UK.
I heard that high-performant German workers go to the US, leading to the lack of labor. This forces German government to allow in 400,000 immigrants per year from now on. Of course, the aging population is another factor.
In minute 17, it is shown that the wholesale price of natural gas is not significantly different from 2018. However, the end price to the customer is four to five times higher than in the US. The real issue, as mentioned in minute 26, is created by the government in Germany and the EU through taxes, levies, and carbon fees.
As Prof. Sinn calculated years ago, the demand for electricity in winter cannot be fully met by solar and wind power alone. The storage capacity would need to be immense, spanning several months, to store energy in August and then utilize it in March.
Good thing winter is over in the Northern hemisphere 😂
The US produces insane amounts of natural gas from fracking. It never has to be compressed or de-compressed, it just gets piped to areas that can burn it. It never has to be pumped as a liquid onto an ocean transport vessel.
I'm sure European rules and regs add to your costs, but really, the fact that the US does not have to deal with ANY of the transport costs you do is a huge factor.
If you look at the "Earth Night Sky" imagery for North Dakota or middle-of-nowhere Texas they both glow in the dark, brighter than Chicago or New York City. This is because it's cheaper to burn the natural gas there at the well than to bother capturing it for transport and sale. THAT is how much natural gas we have here right now!
@@markpukey8 Thats certainly true. But energy prices including gas prizes have allways been higher in Europe, especially in Germany, than in the US. This was despite the Northstream pipelines. The US tries to guarantee its citizens a comfortable life, Germany tends to higher prices in order to diminish CO2.
@@ein_Zweifelnder Fair enough. Sounds like Germany has it's own politicians that do things that SOUND GOOD... but have long term problems. The US just has different stupid politicians so we'll have different long term problems.
@@runswithraptors How do the Americans say: "In god we trust". Even the axis of the earth could flip.
But to stay with the facts: in the last days Germany has faced a so called "Dunkelflaute". Due to fog no sun and no wind could produce electricity. There had been less than 1 % of the nominal production capacity, that could be harvested.
I think this is mainly due to global cost of living crisis. People can’t afford premium quality items and look for cheaper alternatives. German companies are notorious for their beurocratic overhead and managerial inefficiency. It was OK when people had money, but now purchasing power is shrinking it is harder to sell those items. Just thinking about it - VW is not able to sell cars. We are not talking BMW or Mercedes here. It would be interesting to see stats for other automakers as well.
@ I own BMW and I’m very happy so far. In Europe they are not as inaccessible as in US. But I’m not going to buy new one because of hybrid and EV hype. The one I have runs well and I’m afraid that those new models are made to be “disposable” after couple of years.
Hello. Russian here.
Let me give you an example on premium quality items.
Several years ago I bought Dyson (British) vertical vacuum because it was the best.
Nowadays Dreame (Chinese) makes vertical vacuums better than Dyson and more than twice cheaper.
There is literally zero point in buying Dyson nowadays.
For the same price I can buy premium vertical vacuum from Dyson I can buy premium robot vacuum from Dreame.
IMHO Europe is just being outcompeted.
@@neverknowsbest2879 The sanctions seems to have worked out well for you lol. You don't even have to ponder anymore just buy the Chinese item which nowadays is actually a quality product instead of the EU product which relies on reputation that is no loger relevant or true.
@@orthodox-mp6hv Well, the only Western products I do need are PC components.
CPU and GPU specifically.
If somehow Russia gets blocked from procuring those, we will need to switch to inferior Chinese alternatives.
Pretty much everything else is available from non-Western countries, premium or not.
I even switched from Korean-produced Japanese car to Russian-produced Chinese car because spare parts for the old car became gold.
Overall, yea, I don't care about sanctions anymore. Only 2022 was turbulent.
@@neverknowsbest2879 The only 'premium' thing about Dyson was, is and always will be - the price.
Industrial output includes construction and mining as well as manufacturing (at least I think this is the conventional definition). Manfacturing is the most interesting part, given that interest rate manipulation driven real estate price bubbles at home is different from competitive manufacturing of goods mostly for export.
Mining is primary sector, construction is tertiary sector. Usually industry refers to the secondary sector only.
Great video Patrick. This is my favorite rap/car design channel.
Dude your sense of humor keeps refining itself, good
19:53
Well said.
If VW are going to rely on their past design successes, then channel those designs in the new models.
Otherwise, VW should go radical and new, rather than semi-retro.
This reminds me of a quote about the service industry.
"It's a poor country, but the people survive by cutting each other's hair."
Passing around the same dollar does not constitute an economy. Without manufacturing, there is nothing.
Yes there is - good service industry,banking,health industry,tourism,travel,art,entertainment industry...
@@ms-jl6dl
An economy that relies too heavily on service is extremely fragile, especially during times of crisis. You MUST have strong foundations in agriculture, pharma and some manufacturing.
@@ms-jl6dl banking - they need computers and stationary
Health - medical equipment needs to be manufactured, medicine and a lot of chemicals they use needs to be manufactured
Travel and tourism - boats, airplanes, and any vehicle, needs to be manufactured
Entertainment industry - cameras, costumes, sound equipment, computers, etc. are all manufactured goods
Art - there's paint for traditional and computers for digital artists, but I guess there are ways to not rely on manufacturing
Not mentioned but food needs the agriculture industry. Home appliances, your phone, clothes, and things you buy in life whether for leisure or work, are manufactured products.
Countries that thrive with just a strong service industry really are just pushing manufacturing, resource extraction, and farming elsewhere.
What you describe is called a service industry. And if the price raises now and then for ever more sophisticated hairstyles, which you can of course afford, backed by the increasing value of your booming business, you might even have a solid growth model!
@@ms-jl6dl In other words, nothing.
24:31 "...one 42 gallon barrel of crude oil creates just under twenty gallons of gasoline...and the rest (more than half) is used to make everything from ink to antihistamines to fabrics... and the list goes on..." ❤❤❤
Not quite true. There are two tupes of crude oil: sweet oil and sour oil. Sweet oil is the most valuable as it produces the most fuel for gasoline, kerosine, etc. Sour oil produces more lubricants, chemicals, and the heaviest and dirtiest fuel oils making it less valuable. Which types a country has is determind by its geology. Thus, the US profuces more sour oil than sweet oil, and therefore exports much it to refineries in other parts of the world where sour oil is more common, and imports additional sweet oil. As the Middle East produces more sweet oil than sour, this is the reason why the US has pursued an active geopolitical policy in the region. So your quote doesnt reflect the true economic dynamics of the industry and the consequences.
@@CuriousCrow-mp4cx Fracked oil is the lightest, sweetest crude around. US 'traditional wells' are a fairly small percentage of US production these days, although it is pretty sour compared to the fracked stuff.
So nice of Patrick to offer design advice 😂
Love this guy. Thanks for the videos!
A good metric to determine energy costs is LCOE, however when it showed winds and solar was rather expensive, especially if required to provide base load, it went out of fashion in the media. However even LCOE does not factor in grid upgrades, which was the wind/solar solution to the high cost of providing base load. This moved the costs of wind/solar out of its LCOE and into the cost of the grid which made its LCOE values look a lot better. While it is true that if you threw a lot of money into provide a new high voltage grid across Europe then solar & wind could almost provide something resembling base load power. The issue which hit Germany was people did not want their sky filled with very high voltage lines, so even if you had the time and money it will be hard to get people to agree. The simplest solution was always to replace coal with nuclear and to take your time to build up energy storage solutions for wind and solar, which would mean the grid upgrades would be minimal. However as a rather famous German once said many years ago, “Es ist im Kriege alles sehr einfach, aber das Einfachste ist schwierig.“, or in english "Everything in war is very simple, but the simplest thing is difficult". This is an apt description of the current energy war we are engaged in.
Germany closes nuclear plants and opens up coal mines. It is like quitting computers to go back to typewriters.
To be fair, the U.S. military and German military have both been considering typewriters for military and cryptographic purposes to help proof personal information and communications against cyber attack. So sometimes it’s okay to go back. With that said, yeah going back to coal but taxing emissions on public vehicles is wonky
Rap News on point as always!
Love the Mighty Car Mods shout out. Always a man of taste and intelligence.
I think that you are missing out the Eastern part of the story. Many Eastern European countries have growing economies and there's probably a bigger story to tell about them rather than "they have lower standard of living and lower production costs, therefore they are catching up to the EU average"
i live for Patrick sarcasm utterly hilarious .
Brooo Patrick watches mightycarmods??? Maaad! Great episode Patrick! I am a new watcher from Sweden and love your videos about the car industry!!
What you didn't catch is near shoring. VW and Germany in general can shift manufacturing to Poland (the new, rising economic powerhouse - I know it's difficult to accept that a bunch of Slavs are out performing the western Ubermensch) or any other country with less red tape and more efficient workforce.
Poland is also starting to regulate it's companies into hell
Germany shutting down its nuclear plants was the worse mistake any EU country has made since WW2 apart from Brexit.
The inevitable consequence of growing income inequality was that mass production would become less viable, and it would be more profitable to produce luxury goods for a smaller number of people.
What solves nothing because they can only buy so many luxuries anyhow.
Huh? You don’t think rising labour costs (*less* income inequality!) had something to do with it?
@@peterfireflylund - I do but I blame it on housing speculation, not greater income inequality. How social security operates as "tax on human labor" also helps, it should be based on taxes to income/profits, but housing costs are the worst contributor to rising labor costs, because nobody will work for less than it costs to survive ("law of salaries"). Unless the housing bubble is burst for good, salaries can't be lowered/contained.
No worries! Everyone is going to be a Computer programmer!
Chatgpt: "that job will be mine!!"
As a software engineer I wish I studied something else. 😂😂
Or nurse
@@reiisthebestgirl that job has one of the lowest chances of automation.... It's pretty safe so....
I'm going to lear to write code so I can compete with AI bruh!
It is a delight to wach your insightfull analysis and to get a variety of smart comments in addition.
What a community this is!
Cheers from Germany, the headquarter of open complans about itself
My first action on Monday will be to forward your ideas to our CEO. Thanks for saving us!
"Spain complained and the EU have rejected their appeal" is why we are where we are
That is fine if your definition of prosperity is moral superiority and material poverty and you use the hashtag DE-GROW.
Patrick explains why energy prices in the EU are so much higher than in the USA because of EU pricing rules. But what I cannot undestand is why energy prices in the UK are also so high given that the UK is no longer a member of the EU and hence presumably not tied to the EU pricing system. Maybe Patrick could explain ?
So many comments - just want to say that I think your summation of the challenges facing Europe is really good. I think that there is only one thing that I would add is that the decision made to remove nuclear energy as a component of Germany's electricity generation is a mistake. It was a knee-jerk reaction to a situation on the other side of the world that had its roots in poor design. To stymie one's economy on that basis instead of learning and applying what one learns is ridiculous. It is something that they will have to reconcile and reverse - as you have noted, it is pretty counter productive for the environment to offload one's energy needs to third parties where standards may well be lower. Anyway, I enjoyed your video. Thanks for sharing.
It is not a "mistake". It is on purpose and by design.
Thank you for your work Patrick!
Great video. RE: marginal pricing, the UK took the step of providing a ceiling on the revenue renewables/nuclear can make at times of price spikes (when the cost of gas is above something like 18p/kWh or thereabouts). It applies only to large producers i.e. not community wind farms. I guess this somewhat paid for the 'energy price guarantee' in retrospect. Nuclear seems to be the inevitable answer for baseload, and/unless batteries or cheaper hydrogen can be made available en masse.
It is so fantastic to see a youtube video where someone is speaking, without it being edited every 10. 20 . 30 second.
Thumbs up very much for a person who can speak for as long as you can. It used to be normal.
Thank you, it is really pleaseing o watch.
Cheap energy, in the form of the steam engine, and its successors, created the Industrial revolution. You need cheap energy, for a decent economy. And any accountant will tell you that you need to factor in all elements involved for any product. Renewables, like solar and wind, need to include bulk storage (batteries, etc), in their cost, as well as a robust grid, for distribution. Plus nuclear, is the existing carbon free energy source, with much of its costs involving government regs.
Yep, the video is 100% correct about the German reluctance to incur "debt". Some of that might be due to "debt" and "guilt" being the same word in German ("Schuld"), which might lead to a subtle bias in the sense that Germans might generally feel more "guilty" about debt, and therefore try to avoid it even in situations where there shouldn't be anything to feel guilty about.
If the US is doing so well economically, why has half the country gone batshit crazy?
That’s just the usual state of being in an election year, it will calm down eventually.
There have been many, many examples in the past of batshit insane masses having far better lives and outcomes than they deserve... It does catch up to everybody, eventually.
Trump voters are generally wealthier than Democrats, assuming that's what you mean.
Our economic data is straight out of Who’s Line Is It Anyway - its made up and the points don’t matter. We are getting ready for hyperinflation at this point, where we will probably pivot to some kind of equally worthless digital dollar successor and have a fun hot world war somewhere along the way
It's an election year. Also price gouging is still a problem. But whether or not it is solved depends on the results tomorrow.
You NAILED VW's problems. Even the Germans think the Golf is bad value now.
It was always a bad value. Unless you ride Mercedes or Porsche, German cars are too expensive.
@@manara-stream Depends. I am talking VW's home market. A place where it had a huge market share, abundant used cars and spare parts and many "free" workshops with repair know.how. For decades VW was the safe longterm option, even if the starting price was higher than many imports.
This has waned though in the last 10 years.
You can't advocate for the specialization of European export industries while simultaneously arguing against an export-led growth model. In a free trade environment, countries specialize in what earns the most income given their unique conditions; whether it’s access to cheap electricity, chemical feedstocks, education levels, or environmental factors. The only reason to avoid this strategy would be for political reasons, or geopolitical constraints as it implicitly results in a lower level of national affluence
I like the VW Id Buzz's looks, but the price is too high. It's like they're aimed at the "wealthy nostalgic ex-hippie" niche.
Will Smith’s marriage being an analogy for finding a solution for EU deindustrialization is something only Patrick can do.
Completely agree on the analysis of the German economy. The telegraph article felt like a mid-informed hit piece.
Lots to be excited about in Germany, for example their Citric Acid exports, a growing market where our German friends are increasing their share with efficiency and scale.
It is not correct that it takes 120 days to obtain a business license in Germany. When I got mine, I simply got to the local City hall, filled out the forms, and received my license. Further documents (for taxes) were sent only 2-3 weeks later.
Though I must admit, this was back in 2019 - perhaps it has way slowed down since then.
Nice one Mr Boyle!
Great vid!
Thank you Patrick! I like your version of the new VW a lot better, especially the price...not that I'd buy an EV...maybe a hybrid.
But deindustrialization is good for climate! Our Greens party told us so.
Glad to live in Finland. Industry is very productive and electricity the cheapest in Europe but with a very high volatility.
It's unfair. Not everyone can use thermal energy...
Finland also started up Europe's largest and newest reactor on the same day as Germany shut the last of theirs down. Are we learning anything yet, Germans?
@@michib70 geothermal is somewhat bad and not really used here like in Iceland
You have a brilliant way of cracking a few jokes along the way whilst remaining totally deadpan . Some very relevant points made along the way & always an education !
we might be shrinking but we import every year millions of highly skilled people :D
It makes sense bc capitalists want to make profits twice from us: first as workers, then as customers, especially as survival customers of real state, which has been disparagedly high for decades. As such, we can't reproduce but there's a lot of fresh young people out there, in countries that haven't yet developed paternal responsibility and birth control. A worker is a worker is a worker... the more underdeveloped and legally precarious, the better, because they can't even complain.
Mighty Car Mods is the low budget version of Mighty Car Mods.
You were spot-on with the VW camper mods.
Luckily we in the UK lost a lot of manufacturing, thanks mainly to Margaret Thatcher, so in a sense we are ahead of the curve. Lucky us (says a mechanical engineer in a sarcastic tone).
You point out something I have sad for years. Solar is cheap provided you do not bill for redundancy, grid upgrades, and energy storage. Nuclear is expensive as long as you required it to bill for unrealistic insurance, and storing on site.
On site storage isn't expensive
Nuclear in Europe is expensive for two 1: time to build 2: inexperience
Back in the 1950-1990 period when Europe was building nukes it got reasonably good at it.
For example Sizewell C in the auK was built in 6.5 years on budget and on time
But with no new builds for over 30 years the experience was lost and the current new build is going to take twice as long and cost a lot of money
A long term nuclear strategy in Europe would have to commit to 1 reactor per year forever as a min just not lose all the workforce and experience again
1 per year isn't a lot for all of Europe. That's only 80 reactors in total as they last about 80 years. But it's too much for any one nation so would need total EU support which it doesn't have
Not to mention the costly finance of deployement. A huge part of the cost of a nuclear power plant is nothing but interest payment to financial institutions which provides the loans to build.
@@CraftyF0X It's not THAT costly, compared to things like covid stimulus.
@@tolep I hate to cause dissapointment but we won't disagree on that
@@kaya051285 - How is France, the most nuclearized country on Earth "inexperienced" on nuclear matters? They are the best experts Earth has produced on this matter! Last year, however, they had to nationalize the whole nuclear industry because it was rotting down into bankruptcy or even possible nuclear disaster, why? Because radiation eats everything, including materials and you can't realistically have a NPP running for many decades. Nuclear only works for a short time 20-30 years at best, then its obsolete and has to be dismantled (not that it solves the radiation problem in full but at least you don't have a ticking time bomb, that also pollutes nearby air and water, at your backyard anymore).
Tesla’s factory in Germany has on average 20% of its employees called in sick on any day. Some workers haven’t been to work all year.
The European system is broken. Massive welfare and labour laws are terrible for growth
correct. Europe will become a marxist shit hole. The fumes of business spirit and capitalism wont fund these societies forever. They will become the places where Rich people come to holiday with poor natives.
Side note: The population of germany was estimated to shrink since the 1990s. But since every crisis in the greater region means an influx of ~1mn people the population kept growing.
These might not be highly skilled workers but since most german born people go to univesities (~56%) these days it even somewhat fits in the job market. So i wouldnt worry about this part too much.
Well thats certainly one way of solving the problem with lack of qualified labor...
With every passing year I am wonder more and more, who exactly benefits from pushing towards unrealistic electricity production goals while also pushing for more electricity usage, like EV takeover.
It’s the communist revolution and when everything turns to 💩 you will own nothing and you will not be happy.
I did not know VW was a rap band - thank you for enlightening me. Great video!