Thursday, 3 July 2014

Die Welt: Germany says goodbye to the market economy

Make no mistake: This lady is a de facto social democrat!

Already in September last year I wrote about the "social democratization" of Angela Merkel's Germany. This process is happening even faster than anticipated. There is less and less room for the market economy. Germans should be worried:

The GroKo (Merkel's "great coalition") redefines the social market economy: The adjective becomes the main word, while leaving less and less room for the market economy.

The massive government intervention in wage setting means a turning point for the local economy. Further regulation of the labor market will follow. And the rents are also in the focus of the coalition. Here a "rental brake" is to dampen the supposedly anti-social effects of the real estate boom. In the energy sector, market forces are already overridden, and the government has no convincing plan for how they want to deal with the consequences of these interventionist policies. --

If the social politicians of the SPD and Union continues so rigorously to shrink the market economy, Germany's best times will soon be behind us.