Deutsche Bahn’s once-admired service has descended into chaos. Whether decades of poor investment or the company’s unusual structure is to blame, it’s a huge headache for a coalition trying to meet climate goals
15 years ago I thought the Germans were the smartest people in the world because they understood the importance of investing in public services and had a central european style of capitalism that focused on fundamentals over financialization. since then they’ve slowly been adopting more neoliberal policies and making really stupid foreign policy decisions. I’ve lost a lot of respect for them as a world leader.
The DB was supposed to be privatized in 1994, that failed. So now we have a stock based company (AG), lead like a profit oriented company, but owned 100% by the state.
Since 1994, the entire company was (due to incompentence and wrong incentives) driven on attrition. The best example: if a bridge needs repair, that’s DB’s expense, but if the bridge has to be rebuilt, the state pays. So what would any smart CEO do? Stop maintenance, wait for the bridge to fail and then have it repaired on the state’s bill.
I’m German and have been in France quite often in recent years. It’s fascinating to hear their opinions on Germany. Outside our country is still imaged as having great engineering, efficiency - that Trains run on time. It’s quite puzzling to me.
I came to the conclusion that the only real innovation in the last 30 years has been accounting. largely driven by neoliberalism. So every neo liberal country has kind of become more similar. Germany is not special, but has the advantage of having a lot of old successful companies that only slowly get sold of to international conglomerates. (Like Kuka etc). We behave as shitty as the rest, but our downward trajectory started higher up.
Modern computers and software made it possible to account for basically every item in a company with little cost. Before you’d have needed so many people and hours of work to judge profitability of small things that it wouldn’t have been sensible to do so. CAD-Software also enables a special kind of accounting - simulating hardware components enables engineers to judge which parts are necessary and how much thickness is really needed. This is a huge and complicated process of optimization.
Accounting made it possible to turn a mostly opaque company structure that ran inefficient (but mostly on par with the competition) and judge every employee, every item. That’s why supermarkets have outsourced the job of restuffing the shelves to a different company (that has to somehow make it work with the shitty pay that get).
But it’s also the reason why appliances seem to hold just slightly over the warranty period. CAD-simulations made it possible for the accountants to change the products (make them shittier) so that people would need to buy new ones often.
The Deutsche Bahn is the same. Has made it possible to invest the smallest amount possible, because they realized they can just work with the deterioration infrastructure as well - most people don’t have a choice and have to take the late train anyways.
It’s the same with telecommunications here btw. With only few companys owning most Internet services they realized they don’t have to invest a lot into fiber. People need Internet and will have to pay anyways. It’s more profit to just raise prices.
Optimization feels a lot less optimal when it leads to enshittification. I have worked on the tech side of accounting systems in the US for the last 10 years and can say that American companies have largely embraced this category of innovation as well.
Yeah it was not specifically only about Deutsche Bahn, but also an observation about one of the multiple problems that drives the enshittification.
One Point that Deutsche Bahn definitely did was to find out which connections are mostly used by people ( tickets for these connections thereby contribute mostly to DBs revenue) and kind of abandon the less profitable connections. That’s accounting in my book.
What they did (counting passangers by rail-connections) wasn’t possible before, as DB-tickets were sold not electronically and couldn’t easily (cheaply / with little work-hours) be turned into data sets and analyzed.
IIRC tickets were priced much differently - they weren’t fixed to specific trains but to connections (no “Zugbindung”). So There wasn’t even (easily available) data to when most travellers were using the trains.
Today with all the data being generates automatically the accountains know much better what costs and what earns DB money and they prioritize based on that. Once you get into the habit of that even things that are obviously always costs (like fixing rails or bridges) will be outsourced or avoided. (like the supermarket example - it’s obvious that someone has to restuff the shelves, but once you have all the data and see only red numbers you try to separate it away and not do it (so it gets turned into a subcontract with probably unrealistic conditions that some other companies are underbidding each other in order to gain the contract - even if this means that their employees will not earn a living wage from it. It’s a perfect system that also pushes responsibility and blame away from the outsourcing company. they can always blame the sub contracting company for underpaying or not follow safety regulations (even if they can only fulfill the sub contract by operating this way)).
True. Accounting is the best friend of digitization.
However, it’s not always bad to look what makes sense or drive profit and what not. It’s rather a matter of how religious one is about it.
Take the second wave of computerism for example. What we call Digitalization.
This is mainly driven by opportunities and chances of new business not so much about squeezing out the last percent of profit. This all is accounted as well, but management doesn’t care.
15 years ago I thought the Germans were the smartest people in the world because they understood the importance of investing in public services and had a central european style of capitalism that focused on fundamentals over financialization. since then they’ve slowly been adopting more neoliberal policies and making really stupid foreign policy decisions. I’ve lost a lot of respect for them as a world leader.
Oh no, that actually started way earlier!
The DB was supposed to be privatized in 1994, that failed. So now we have a stock based company (AG), lead like a profit oriented company, but owned 100% by the state.
Since 1994, the entire company was (due to incompentence and wrong incentives) driven on attrition. The best example: if a bridge needs repair, that’s DB’s expense, but if the bridge has to be rebuilt, the state pays. So what would any smart CEO do? Stop maintenance, wait for the bridge to fail and then have it repaired on the state’s bill.
I’m German and have been in France quite often in recent years. It’s fascinating to hear their opinions on Germany. Outside our country is still imaged as having great engineering, efficiency - that Trains run on time. It’s quite puzzling to me.
I came to the conclusion that the only real innovation in the last 30 years has been accounting. largely driven by neoliberalism. So every neo liberal country has kind of become more similar. Germany is not special, but has the advantage of having a lot of old successful companies that only slowly get sold of to international conglomerates. (Like Kuka etc). We behave as shitty as the rest, but our downward trajectory started higher up.
Modern computers and software made it possible to account for basically every item in a company with little cost. Before you’d have needed so many people and hours of work to judge profitability of small things that it wouldn’t have been sensible to do so. CAD-Software also enables a special kind of accounting - simulating hardware components enables engineers to judge which parts are necessary and how much thickness is really needed. This is a huge and complicated process of optimization.
Accounting made it possible to turn a mostly opaque company structure that ran inefficient (but mostly on par with the competition) and judge every employee, every item. That’s why supermarkets have outsourced the job of restuffing the shelves to a different company (that has to somehow make it work with the shitty pay that get). But it’s also the reason why appliances seem to hold just slightly over the warranty period. CAD-simulations made it possible for the accountants to change the products (make them shittier) so that people would need to buy new ones often.
The Deutsche Bahn is the same. Has made it possible to invest the smallest amount possible, because they realized they can just work with the deterioration infrastructure as well - most people don’t have a choice and have to take the late train anyways.
It’s the same with telecommunications here btw. With only few companys owning most Internet services they realized they don’t have to invest a lot into fiber. People need Internet and will have to pay anyways. It’s more profit to just raise prices.
Optimization feels a lot less optimal when it leads to enshittification. I have worked on the tech side of accounting systems in the US for the last 10 years and can say that American companies have largely embraced this category of innovation as well.
Interesting point of view - your accounting thing.
However, that doesn’t really fit to Deutsche Bahn, I think. Your point is rather about a Monopoly but an accounting exercise.
Yeah it was not specifically only about Deutsche Bahn, but also an observation about one of the multiple problems that drives the enshittification.
One Point that Deutsche Bahn definitely did was to find out which connections are mostly used by people ( tickets for these connections thereby contribute mostly to DBs revenue) and kind of abandon the less profitable connections. That’s accounting in my book.
What they did (counting passangers by rail-connections) wasn’t possible before, as DB-tickets were sold not electronically and couldn’t easily (cheaply / with little work-hours) be turned into data sets and analyzed.
IIRC tickets were priced much differently - they weren’t fixed to specific trains but to connections (no “Zugbindung”). So There wasn’t even (easily available) data to when most travellers were using the trains.
Today with all the data being generates automatically the accountains know much better what costs and what earns DB money and they prioritize based on that. Once you get into the habit of that even things that are obviously always costs (like fixing rails or bridges) will be outsourced or avoided. (like the supermarket example - it’s obvious that someone has to restuff the shelves, but once you have all the data and see only red numbers you try to separate it away and not do it (so it gets turned into a subcontract with probably unrealistic conditions that some other companies are underbidding each other in order to gain the contract - even if this means that their employees will not earn a living wage from it. It’s a perfect system that also pushes responsibility and blame away from the outsourcing company. they can always blame the sub contracting company for underpaying or not follow safety regulations (even if they can only fulfill the sub contract by operating this way)).
True. Accounting is the best friend of digitization.
However, it’s not always bad to look what makes sense or drive profit and what not. It’s rather a matter of how religious one is about it.
Take the second wave of computerism for example. What we call Digitalization. This is mainly driven by opportunities and chances of new business not so much about squeezing out the last percent of profit. This all is accounted as well, but management doesn’t care.
What you are describing is racism - positive racism but racism none the less.