Pay in Germany is generally low. Where someone in Seattle would earn $120k to $140k easily, the same person in Germany may net only $40k to $50k. Housing and especially food & drink are much cheaper than the US though, $12 beers aren't anywhere near as common.
Definitely, I think its BS that there are massive pay disparities between the US & Germany, when I've had friends visit from Germany I'm impressed with their programing & english skills, and also shocked with the low pay in Germany. The English skills that my German friends have are surprisingly good, and they could easily work with Americans on the same project with similar levels of productivity.