Speaking as a German, wrt pay I think this topic is not quite so simple. Germany doesn't have particularly high wages and one of the reasons for that is that labor costs are so high. How can that be? Simple: all labor protection that we have is, at end, simply a cost. Yes, we have payed sick leave. Very civilized. But German employees call out sick, on average, 11 days a years. That's almost two weeks pay for no labor. In a global, competitive labor market that cost isn't coming out of the profits of the company. It's coming out of our wages. And so it is with all the other "goodies" that we get.
Btw, our cohesion isn't really what it used to be either.