Robert Habeck decreed a new model of the social market economy

Dthe annual economic report is one of the little noticed government documents. In its estimates, the competent federal minister of economy usually follows the long-standing consensus forecasts and presents its policy once again. Reading is only exciting after you change office. The new ministers then sealed the report.

CDU Economy Minister Peter Altmaier made a clear message that he wanted to stabilize social security contributions below 40 percent. Limiting redistribution corresponds to the idea of ​​a social market economy. It relies on competition and personal responsibility and generates social security primarily through market revenues.

“Fair, social, ecological”

As is well known, Altmaier was not destined to be very successful. The grand coalition was only able to stabilize social security contributions by increasing debt-financed subsidies to social security funds – there is no sustainable financial concept. Changing course would be an urgent task for a traffic light that feels committed to “sustainable development”. The Minister for the Green Economy, Robert Habeck, must also make a contribution.

Will this work with the model that he recommended to the social market economy? Habeck wants a “sustainable economic model” that takes full account of “planetary boundaries”. Therefore, in the Annual Economic Report, the new indicators aim to measure progress towards “sustainable prosperity” as understood by the Greens. You can already guess how many new requirements these indicators bring with them.

On the other hand, commitments to growth, productivity and competition can only be found in the Habeck report in a weakened and narrowly conditioned manner: Trade only “fair, social, environmental and human rights”. Digitization “responsible, sustainable, inclusive”, market prices only “without negative side effects”.

If this distorted picture of the social market economy prevails, the will to act and the entrepreneurial spirit will struggle in Germany – and the expected gains from socio-ecological restructuring will not materialize. The traffic light government could reach its financial constraints faster than the planetary ones. So it shouldn’t blame the economic model.

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