Part 7/11:
Menchow posits that the German economic woes stem from a systematic failure in governance, where the political, financial, and industrial spheres became intertwined to the detriment of innovation. The "neo-mercantilist" approach—maximizing industrial exports—once rendered Germany a global economic power, yet it has since transformed into a barrier to adaptation.
For years, political relationships concentrated on maintaining the interests of traditional industries, leading to a lack of support for startups and technological advancements. This dependency has stifled innovation and allowed competitors to soar ahead, especially in sectors pivoting towards digitalization.