The sell-off of the German economy has begun

If one of the dynamic Winner of the on-the-Corona-the time, the television chef and restaurateur Tim Mälzer, Markus Lanz sitting in the armchair, in view of its

The sell-off of the German economy has begun

If one of the dynamic Winner of the on-the-Corona-the time, the television chef and restaurateur Tim Mälzer, Markus Lanz sitting in the armchair, in view of its economic disaster starts to cry (he fears for the preservation of the jobs of its 160 employees), if in Germany the suicide rate will skyrocket, although, in fact, almost nothing Great is happening, then this is alarming enough.

Yet all are in short-time work, yet it caught "only" the Small, the politically-hardly a Lobby, the medium-sized companies, the Doctors, the Bus and Taxi entrepreneur, the artist, the showman, the actor.

money alone makes no economic

You may not even imagine, what could happen, from the collapse of the hotel chains started up to the impending insolvency of the half of our automotive suppliers, etc.

If at the end of the grinding track – abbreviated shutdown or lockdown is called million are terminated and on the road, because with the pumped billion euros of the ECB fiat money by itself, no economy works, then the old adage is true yet again: From experience you will be wiser.

A flourishing economy requires well-developed structures, need motivated employees, decades of well-kept business relations, requirements of the trust in the future. On the economic miracle of the 50's, waited for Germany from 1948 to 1952, four years, until the engine is turned after the Total collapse with the new D-Mark again. Admittedly, at the time, the money was still solid and was thrift is still a virtue, what makes an explosive economic Expansion so easy.

The first economic stimulus program fraud, and twenty years later, in the times of plush and Plum – Strauss and Schiller – a-billion Mark. Today, the EU is planning on the occasion of the Corona-loss benefits, in the trillion range, for Germany alone, in some three hundred times that of the former recovery plan.

From the announced Merkel-not to mention a trillion in grants and loans to very. Only so much money you can earn not just a print.

ThyssenKrupp would have deserved Better

To the great Corona-intervention with a large effect of the "small" sins to come. That you will not be cooking up evidence of the economic ignorance in the press and politics. I'm talking about the demise of ThyssenKrupp, the sole responsibility of the antitrust authorities of the EU.

Admittedly, the company has destroyed in the past with a awful Brazil-adventure much substance. However, the Management has made under its then chief Executive, Heinrich Hiesinger, the company with the technology sectors of Automotive and Elevator back on a solid Basis.

The renovation was threatened at the end but then again, as the world market broke the price due to the pressure of Chinese steel producers. Lower prices can be balanced for mass products only by larger production units. So merged Hiesinger right steel way division, with the Indian giant Tata Steel, so that ThyssenKrupp with the remainder had existed as a healthy technology company.

Far from it. The EU competition Commission made requirements, with which the merger for both sides, not expected. The steel division, then but alive, had to ThyssenKrupp to sell now, his silverware, his profitable lift division.

Corona-due to swallowed in the past few months, the new operating losses division, however, the proceeds of the sale for the Elevator – even before the was paid. Only a state Bridging prevented the worst of it. Temporarily.

The construction industry as engine of the economy

these are the "small" damage, caused by the lack of economic sense on the part of the state. The big ones will follow inevitably, if in the coming months, the Motor of every economic boom, the construction industry, in the knee. The past decade after the financial crisis of 2008/2009 was the period of low interest rates, which triggered an escape from the money values and at the same time, many real estate projects are made profitable.

This rule applies not only to the stock exchange, it shall apply for the whole economy. The long-term banks-funded projects are a wonderful multiplier for economic activity, generate in the short term, many follow-up orders: The universal increase in the profitability within the supply chain then radiates to all sides, in the automotive industry, in the industrial-construction, in the profitable world of business travel in the gastronomy, etc.

This effect is to Corona, because of the failure of a part of the small, medium and large industry leaves many objects are empty, that is, new buildings are required, find no tenant, are not profitable will not be built. The same applies for private property.

The uncertainty in the income shaved the demand. The structure of the real estate market prevents new buildings, the state can replace, in part, by government contracts, but not quite. It is missing anywhere on demand. They could ignite with a citizen of money. Problem this time: the Hyperinflation and national bankruptcy would be a matter of time.

To state ownership, there's no way around

Ergo: The economy needs time to find a new ground to structure the self and to stabilize. In addition to the state itself, the large companies have the important task of stabilization. There you are, with a few exceptions, armor, food, Pharma, for example – dilapidated, there are only two variants of the stabilization:

the participation of The state, just as it is currently in the Lufthansa is implemented, or as in the past, Commerzbank has been practiced. Major German companies, especially the technology sectors, are almost all for our country relevant to the system.

In them the know-how stuck is guess the Know, so – for lack of soil, the Foundation of our future, so we can appreciate, prosperity. In this variant, there is no way around, because the other would be the sale of large companies abroad, for example, to the Chinese state economy, or to the insatiable and ask a financial investor, Blackrock worthy – in both cases, we were betrayed and sold.

About the author: Florian Josef Hoffmann, attorney at law, born on 20. July 1946, a lawyer with the special areas of business law and antitrust law. From 1981 until 2017, he was in Düsseldorf, established lawyer, since may 2008 he is the head of the European Trust Institute. After the turn, he was President of the chamber of Commerce and industry East Thuringia, Gera. Hoffmann is the author of several books and articles in Newspapers and magazines, he describes himself as "a Lobbyist for a cartel-friendly competition law".

*The post "The sell-off of the German economy" has started to be published from The European. Contact with the executives here.

Date Of Update: 01 June 2020, 12:27

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