Ever since I first heard this I've kept both this phrase and the phrase "the squeaky wheel gets the grease" in mind at the same time.
Basically, both sides of this coin together ask you "should you speak up?" type of thing; substitute "speak up" with whatever the given situation is.
We hammer nails because we want a flat surface. We grease wheels because we want quite wheels.
If you get the hammer or the grease depends upon what is needed to fix the problem. Do you need a punishment or a reward.
Germany seems more relaxed than the Netherlands, and France seems to be worse. I've had friends telling me their Mercedes got frequently keyed for no reason, and the old Mercedes star on their classic even got ripped off.
There is a proverb in France that says that to live a happy life, you'd better keep a low profile (not literal translation which would more be to live a happy life, live hidden) "vivons heureux, vivons cachés".
So yes if you own nice things and show it publicly, you'll get annoying comments, have them damaged or stolen. And it is getting worse.
Unlike in Japan, I would not expect a lost wallet to be returned to its owner, never.
See this:
https://www.telegraph.co.uk/expat/expatlife/10599631/Why-the...
As the rest of the world industrializes and the deficiencies and costs of our own social fabric are revealed in comparison, Americans seem to increasingly like to distinguish ourselves as "creative". But it's really just a euphemism intended to characterize our differences in a way that permits us to claim that we're "better" at something. Back when the U.S. was a leading industrial power house, when our democratic institutions were unique, there was no need to identify a specific quality like creativity to distinguish ourselves.
[1] I've been in at least one country where the very concept of a line seemed foreign to most of the people, who were within months or years (not even generations) removed from an nomadic lifestyle. This was qualitatively different than in some other countries with aggressive line jockeying and cheating.
That was a competition for punkers. Who could get the most of these stars ...
And in Japanese there are a plenitude of idioms about not standing out. The high post gets hammered down, the tall flower gets pruned, and the speeding car gets stopped are others I've encountered.
Expectations.
Here he was in this clean and crime free place, but his bicycle kept getting trashed overnight. Just his bike parked in a sea of other bikes.
He thought it was because he was a foreigner, but finally after he reported it to the police numerous times someone explained the phrase "The nail that sticks out gets knocked down." and pointed out the bikes he was buying were from China.
His bike looked similar to everyone else's bike in the area, but it was made by a Chinese company and there had been news stories about how these bikes were faulty / dangerous / bad (the information apparently was somewhat questionable).
So he bought a proper Japanese bike that looked like the other bikes, and it never happened again.
The contrast of a clean and orderly society with very targeted pressure by random members of society not to do something like buy the wrong bike ... is quite striking.