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Paul believes that they are losing the war because they are being driven back by superior forces...... that they haven't been beaten because as soldiers they are far more experienced and better trained. Everyone around him is starving..... dying...... falling, but he sees their impending defeat as a result of smaller numbers, less weapons, and massive food shortages...... not heart or superior soldiery.
"We are not beaten, for as soldiers we are better and more experienced; we are simply crushed and driven back by overwhelming superior forces."
All Quiet on the Western Front