Tomas Pueyo Profile picture
Feb 19, 2024 24 tweets 9 min read Read on X
Germany just became the 3rd largest economy
But why is it so rich?
Work ethic?
Here's a huge factor: Geography 🧵
If there was something special about 🇩🇪, we should be able to tell it in the regional GDP numbers: It should stand out. But no: regions of neighboring Netherlands, Belgium, Luxembourg, England, and Northern Italy are as rich or richer Image
Why are Denmark and the Netherlands richer than Germany in terms of GDP per capita if Germany is so well run? Image
If the country's productivity was exceptional, we should see it on satellite maps of nightlights—strong proxies for wealth. But see how Germany compares to Haiti/Dominican Rep or North/South Korea:
Can't tell the border in 🇩🇪, it's obvious in the others!

Image
Image
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It's not 🇩🇪, it's the region. Something is making it rich. What might it be?
Let's look at a map: What do these regions have in common?

Flat
➡️Cheaper infrastructure
➡️Easier to irrigate & produce food
➡️More ppl
➡️More wealth

But Poland & France are also flat but poorer. Why?
There is something else: navigable rivers.

The region of northwest🇩🇪/🇳🇱/🇧🇪 has the highest density of inland navigable waterways in the world. And also the highest density of wealth in the world. Is it a coincidence? Image
Lots of these waterways today are artificial canals, but the region also has the highest density of naturally navigable rivers
➡️irrigation
➡️sediments (more fertile land)
➡️Cheap transportation
➡️Trade
➡️Wealth
➡️Infrastructure
➡️Cheaper transport
... Image
The importance of inland waterways was known a long time ago. Eg, the Emperor Charlemagne built the 1st canal in the region... in 800 AC! (Fossa Carolina, pictured below)

It connected the Rhine basin with the Danube basin
Image
Image
But why are there so many navigable rivers in this corner of the world?

The Earth's rotation create, warm currents ("Gulf Stream") from the Caribbean toward Northern Europe, warming it up
The Earth's rotation also pushes warm winds in the same direction
Warm ocnea + warm winds➡️They load up on moisture, which falls as rain on Europe. That's why this region has so much rain and so little sunlight

Red: no rain
Blue: rain
Purple: lots of rain
🇫🇷🇧🇪🇳🇱🇩🇪 get lots of rain
More rain➡️More farming productivity➡️More wealth Image
But notice where most of the rain falls?
On the many mountain ranges—especially the huge Alps
They stop the winds and catch their moisture, which falls as rain or snow, stored in snowpacks

The snowpacks slowly release the water through the year, stabilizing the rivers Image
And why are there so many mountains there? Because of plate tectonics: The African Plate hits on the Eurasian Plate Image
Southern Europe has more mountains & less flatlands ➡️It's poorer
It's not work ethic (northerners work less, as you can see)
It's geography Image
And why is the north so flat? Because it's very old terrain, flattened over eons—especially in the last few ice ages Image
Flat lands with rain
Rivers bringing sediments and water
Perfect conditions for an amazingly fertile land
Germany has among the most productive fields in Europe!

The tech revolution of the Middle Ages improved its productivity with the heavy plow, horseshoe, & horse collar Image
Flat also means it's much cheaper to build infrastructure: roads, railroads, housing... So ppl can build faster and cheaper, accelerating growth Image
So:
🌍Rotation of Earth➡️Rain🌧️
🌋Plate Tectonics➡️Capture rain & store in snowpacks
❄️Ice Ages➡️Flat northern plain
➡️Navigable rivers+Cheap infrastructure➡️ Trade ➡️ Wealth💰
➡️Easy irrigation & sediments➡️Food surplus➡️Population🧑‍🤝‍🧑
Population + Wealth➡️Huge economy
And that's not it! See the Ruhr region here, one of the wealthiest in the world?
It has one of the best coal mines in the world

So when the Industrial Revolution arrived to 🇩🇪, it had the coal, the workers to mine it, and the rivers to transport it
Image
Image
And it's not just the Ruhr's coal! Germany has had great mines throughout history, because the same mountains that gave it water also gave it mining resources
Image
Image
Many of these assets are shared by 🇳🇱🇧🇪🇫🇷, and hence why they're also very rich (and even richer than 🇩🇪)
It's also not a coincidence that Poland, just to the east, is growing the fastest in Europe, now that it's unshackled from bad mgmt & occupations
So why is Germany so rich? Many factors, but the huge one that few mention is that it got lucky with its geography

Enjoyed this? Follow for more! Soon Poland, France, Mexico & more!

Much more detail & sources soon on my site. Subscribe for free:
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If you’re going to write “no it’s because Japan went down”, do a favor to yourself and pause for a second to think a few steps ahead

Why was 🇩🇪 4th to begin with?
Why so resilient in the longer term?
Think for than months. Think centuries.
Also: No, geography is not the ONLY factor
It's the most UNDERRATED factor
If I thought it was the only factor, I wouldn't have made this gif last week, showing how different political mgmt can have heavy consequences:

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More from @tomaspueyo

Feb 24
The stupidest German policy of the last decade: closing its nuclear power plants

These are Germany's sources of electricity vs what they could have been if they had kept nuclear open:

• This has destroyed Germany's industry
• The new gov can reverse this
🧵
Germany's economy is in tatters. It's one of the slowest-growing rich economies. It has been in recession in 2023 and 2024! Image
One of the main reasons is its industrial production: It's shrunk compared to similar countries Image
Read 13 tweets
Feb 19
This Sunday are Germany's elections
These are the best maps to understand the country:
Why is it so rich?
What makes it special?
What lies in its future?

1. We can still tell the East/West divide, 35 years after the reunification. These are Germany's phantom borders
2. Before WW2, East Germany had more:
• Working class ppl
• Vote left
• Women working
• Births out of wedlock
• Protestantism Image
Image
Image
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3. The main reason is because this region industrialized early. One of the reasons of that industrialization is because of the Bohemian Mountains and their coal and iron Image
Read 24 tweets
Jan 29
UNPRECEDENTED
The singularity is near. We're 1-6 years away from AGI according to:
1. Prediction markets
2. Insider insights
3. Benchmarks
4. Lack of barriers to growth
5. Current progress

This breakneck speed of AI progress is illustrated by OpenAI's o3 and DeepSeek🧵 Image
1. Prediction Markets:
Average bet on AGI: November 2030
Mode: June 2027Image
Two other bets in Metaculus match this:
• Two years to weak AGI, so by the end of 2026
• Three years later, Superintelligence, so by the end of 2029 Image
Image
Read 22 tweets
Jan 18
This remote corner of the US has something unique that might soon make it one of the most important cities in the world—the city of the future. It is officially Boca Chica today, but it might soon become Starbase 🧵 Image
This point at the south of Texas is the southernmost point in the continental US Image
That is extremely useful for rockets

The biggest share of weight in rockets is fuel. Most of it is burnt just to carry the rest to orbit! Rocket makers do anything they can to reduce fuel consumption Image
Read 14 tweets
Jan 15
We should transform Guantanamo Bay into a 21st Century Hong Kong 🧵
Hong Kong was a deep water port surrounded by a Communist country—China

By building up the port, urbanizing the surrounding area, making business easy, and taxing little, Hong Kong showed China what capitalism could do by becoming a global port and financial center Image
Seeing this success, Deng Xiaoping made the neighboring Shenzhen into a special economic zone (SEZ). The area exploded and is not the epicenter of global manufacturing, along with the broader Guangzhou, on the Pearl River delta Image
Read 12 tweets
Jan 3
The answer to this is FASCINATING, it goes beyond what most people think, and its ramifications help explain ALL of the US's climate and population

Here's what people already know: rain
Water basically stops halfway through the US
But why? Image
The next thing people will say is: mountains. The US West has tons of them! See map

Mountains stop rain, and the US West is mountainous, so that's why rain doesn't make it farther, right?
Wrong! Image
Look at California's Sierra Nevada. The western slopes of the mountains are GREEN! They CATCH the rains

Why doesn't this happen in the middle of the US? Image
Read 16 tweets

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