That is a fantasy world. Something must pay for the people that are losing their jobs and getting free money. EIther they are making money now and paying them, or they are borrowing against the future and paying them, which is a Ponzi Scheme.
Regarding jobs moving because of high wages: We sit here and wonder how jobs went from the US to China. Over in China, many companies are now seeing wages increase in the coastal regions in China (as iairishcheeks discusses above), and they are now looking to establish new operations in the interior of China where wages are lower. So, that which we lament at an international level is already starting to happen within China.
Also, within China, I've seen companies play different tax districts against each other, being willing to move factories from district to another for a tax cut.
Companies that last a long time are very responsive to wages, regulations, taxes (which I failed to put in my numerical list) and the like. If they can, they move. And, they are increasingly able to move with globalization. Because of this, the old policies will not work. If in fact Germany is doing something different, then we need to investigate that. But what you describe is not addressing the problem; it is something that would exacerbate it, and would be need the government to do something else to compensate. The question is, what is that something else? (Or, are they just at an advantage since they are trading with the likes of the UK and US, instead of China and Mexico...I don't know.)