Noch Mehr Schaden - Australia's transition into poverty
Please forgive me. I was going to be pens down today. But having read an article, I feel obiged to share.
I have written earlier about the industrial suicide being committed on behalf of the German people by the German government through their energy policies. However, this story I am about to share is the poisoned cherry on top.
Beyond a shadow of a doubt, the car industry is the most important industry in German. The entire ecosystem around car production sustains the German econony and through spill over, provides the generous subsidies to the mendicants of Europe.
However, thanks to the Bowen-eqsue policy of the German government, to go all renewable, power prices have rocketed up. $275 price falls ain’t gonna help them.
So, what one expects to happen in an economy when prices rise happens. Sales decline causing business to decline.
Thus without the slightest hint of irony, it has been reported this week that Gerhardi, the company that makes the plastic star mounted on the grill of Mercedes sedans has filed for bankruptcy. A 225 year plus old company …. GONE:
Germany’s Gerhardi Kunststofftechnik GmbH weathered Napoleon’s invasion, the Great Depression and two world wars. But Europe’s current auto slump has brought the plastics manufacturer to its knees.
Founded in 1796, Gerhardi started out making metal products before riding Germany’s postwar automotive boom. Its mastery of injection molding and hot stamping made it a trusted supplier of grills, handles and chrome trims for Mercedes-Benz Group AG. But last month, after a protracted period of rising costs and withering demand, the company filed for bankruptcy, plunging its 1,500 employees into an uncertain future.
The next obvious step for the bankruptcy trustees wil be to lobby for a Future Made in Germany policy where government comes in to provide selective subsidies to compensate for the effects of goverment policy. Unfortunately for Gerhardi, there is only one government in the world so stupid to come up with the scheme like that.
Automotive suppliers employ around 1.7 million workers across the European Union and spend some €30 billion ($31.2 billion) each year on research and development.
1.7 million workers …. that’s still less than the number of public servants employed in Australia.
Oh and by the way …. electricity in Australia is more expensive than in Germany.
A political class who still earn a fraction of the public servants who profit from economic carnage.
Well … Merry Xmas to them. No doubt the tax payer funded turkey and prawns at Kirribili House will be extra special this year.
And just like that another business opportunity presents itself to China............