Very rarely have economic institutions, market and trend researchers, politicians and their Sherpas been more at a loss than today. Surely, they do not want to admit to that and this is why we are being inundated with figures and cause studies and analysis so that we can read and hear almost daily in the media new statements and commentaries instead of plausible explanations. The so-called “wise men”, the country’s council of economic experts, speak without blushing of changes in the range of 60% from one quarter to the next, when it comes to the future growth predictions of the German economy. First they forecast growth of 1.5% and then 2.4%. Who should take all of that still seriously?

Indeed, the German economy is doing better than it has in a long time. Of course, politicians like to claim this success for themselves, even though everybody knows, that changes brought about by politics do not take place overnight. It is not possible to quickly catapult a country at the tail end of the European countries list in regards to economic growth to one of the top spots. Market and trend researchers do not have the power to do anything really decisive that would let the economic sun burst through thick grey clouds of general pessimism. Even the toothless and powerless trade unions didn’t offer much advice. So what is it that brought about this change in Germany? Why are Germans and the German economy thriving so much all of a sudden?

Economy is 50% psychology and 50% performance. I think this formula expresses very well the current situation in Germany. Germans were tired of hearing all this lamentation and turn into a nation of whiners. Abroad nobody understood a nation that spent most of its vigor on pitying itself, instead of utilizing ones strengths and taking off towards new goals. 50% psychology was the engine that put Germans back on the road of success. No doubt about it, the new German Chancellor had somewhat of a kick-start function and in a manner of speaking pushed Germans to stepping on the gas and get going. The Soccer World Championship and the visit of the Pope added to the positive situation. What had a very favorable effect on Germans and what motivated them in a way was the positive impression they left on people abroad. There was joy that the world finally saw Germans as the open, friendly, highly motivated, reliable and predictable people they are instead of carefully evaluating them with reserve. All of this caused a new kind of self-esteem and this led to Germans getting back to their role-model function. Nothing encourages people more than acknowledgement and that applies especially to Germans. “Du bist Deutschland – You are Germany” is what an advertising campaign claimed. I did not understand why this campaign was criticized so heavily. Because for me the core of this message was exactly what Germans needed to jolt themselves into action, which is what former President Herzog had addressed several years ago.

What do we learn from this? For every economic success you need people who go along. Money only plays a subordinate role here. Human beings who believe in themselves and trust one another can still move whole mountains. We should all be happy about that.