The German business model is at an end. Economic growth is important. It not only saves prosperity, but also democracy.
D as Mini growth of 0.2 percentwhich the Federal Statistical Office announced for 2025, cannot hide the fact that the German business model geared towards the export industry is at an end. US President Donald Trump’s tariffs and China’s competition mean that foreign trade no longer promotes Germany’s prosperity, but instead endangers it. However, the medicine that the business lobby is demanding would only weaken the economy even further.
Does Germany need more economic growth? Yes, says Simon Poelchau, because the economy is not just about prosperity, but also about democracy. No, replies Nick Reimer in his contrabecause further growth due to climate change is no longer acceptable.
In addition to less bureaucracy and lower energy costs, the large associations are also demanding lower taxes and labor costs. But Germany has never been a low-wage or low-tax country. In fact, lower labor costs and tax cuts would in no way make the country more competitive.
It is precisely these two factors that caused growth last year: private consumption and government investment. This requires good wages and tax revenue for the state.
Also the joy of some growth critics, for whom the local industrial proletariat apparently the main enemy in the fight against climate change represents is out of place. The people who are now paying the bill because their job is in jeopardy or has already been lost bear no responsibility for the fact that the industry is ignoring climate protection and preferring to rely on combustion engines instead of electric cars.
Such decisions are not made on the assembly line, but in the executive suite. In this respect, only one person benefits from the crisis and the uncertainty of the people in the country: the AfD.
If not only prosperity but also democracy is to be preserved, the economy must be saved from itself. What is needed is growth that comes from the country itself and is as green as possible. This requires higher wages and higher taxes for the rich and companies. Fighting for this will be the main task in the near future social left be.
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