It's hard to tell, really. These things can only really be seen in hindsight.
But los of overall creativity still stifled by bureaucracy, mediocracy and latent rassism.
Also we have something called SVA and "Sozialpartnerschaft" which hurts a lot. The one takes most of young founders money, the other makes sure the curtent old-white-male elite stays in place.
It's because of such short-sighted longings like dooming the Sozialparterschaft why values like equality and solidarity are increasingly falling to peaces, reduced workforce protection, going ill to the job etc.
You are right that one state social security system would probably be enough instead of more than a dozen.
https://en.wikipedia.org/wiki/Mercer_Quality_of_Living_Surve...