The "Alternative Economic Policy Working Group" has published its MEMORANDUM 2018 report.
Price of the "black zero": distribution deficits and gaps in supply
Germany, with its senseless ideology of austerity and cuts, has not yet arrived economically in the 21st century. The small-minded hucksterism in the ruling policy is also slowing down the recovery in the European Union and the Eurozone.
The Memorandum 2018 shows urgently needed alternatives to the economically narrow-minded "zero policy". In Germany, the focus must be on strengthening domestic demand and thus on higher incomes for dependent employees and more government spending. The state share is significantly too low. In Europe, it must be about cooperation instead of blind competition. Prof. Dr. Heinz-J. Bontrup explains: "Germany's current account surpluses have been and are being generated at the expense of dependent employees and are therefore counterproductive and dangerous. Germany's chronic current account surpluses are by no means a healthy indicator of competitiveness. Rather, they are the result of domestic economic imbalances. Permanently and senselessly, much more is produced in Germany than is consumed, while important domestic economic sectors such as infrastructure, care, education and the Affordable housing on the basis of public housing are criminally neglected.
Millions of precarious jobs have led to poverty wages and later to poverty in old age. Frustrated, many citizens are turning away from established politics. National ideas that are hyper-dangerous for democracy are becoming more and more popular. Prof. Dr. Mechthild Schrooten explains: "The demand for an unconditional basic income shows how many people feel that working life has no prospects. In fact, a basic income that is resistant to poverty is not an option in purely mathematical terms.
What is urgently needed is better participation in the labour market. "Contrary to the manipulated official statistics, mass unemployment with a growing number of precarious poverty work still characterises society," says Heinz-J. Bontrup. Reducing working hours with full wage and staff compensation is therefore urgently needed and would be easily financed against the background of an overall rich Germany. Last year alone, Germany produced over 2.3 trillion euros in distributable value added. The distribution issue is the core problem in Germany. "A lot of capital in the hands of a few also means that the financial markets no longer function; risks are again accumulating more intensely here," explains Mechthild Schrooten.
Against this background, the Alternative Economic Policy Working Group is focusing on strategies that put a definitive end to the redistribution from the bottom to the top. Economic growth must reach everyone. Wages must rise, working hours must be shortened and the welfare state must be expanded instead of dismantled. To finance this, taxes must rise sharply. In the past, the much-lamented national debt was mainly caused by taxes that were too low. Therefore, the top tax rate and corporate taxes must be increased. In addition, a one-time wealth tax must be levied and the immediate reintroduction of the wealth tax must be implemented. This can then be used to finance, in addition to additional national debt, a public investment programme of at least 120 billion euros. Last but not least, and once again, the Alternative Economic Policy Working Group calls for a democratisation of the economy. The 40 million dependent employees in Germany must finally have a say in the economy, on an equal footing with capital.
Anne Katrin Bohle has been State Secretary for Construction at the Federal Ministry of the Interior, Building and Housing since March 2019.
Until the German EU-The "Leipzig Charter" is to be further developed into the "Leipzig Charter 2.0" for the EU Council Presidency in 2020. The "Leipzig Charter", which is little known even among experts, invokes the values of "citizens' co-determination and self-determination, calls for social integration, the creation and use of public space, a strengthening of city centres and a mix of uses". And the "idea of the "European City" explicitly opposes one-sided and monotonous urban development. Against exclusion and isolation of individual city districts, against the ruthless enforcement of individual interests."
Climate protection targets can only be achieved by investing in green technologies of the future and sustainable investment strategies / Energy Agency to support municipalities with divestment strategies in future.
"To be climate neutral by 2050, we not only need to make additional investments in green and innovative technologies of the future. Above all, we also need a shift from existing investments in 'brown' raw materials such as coal, oil and gas to 'green' climate-friendly technologies. The phase-out of fossil fuels must be global and rapid, in line with the goals of the World Climate Conference. Only in this way can we realistically achieve the climate protection goals. Churches, municipalities and also companies are setting new standards here and demonstrating the feasibility of the changeover in both ecological and economic terms," said Environment Minister Ulrike Höfken today at the event "Divestment and Sustainable Finance", which took place during the Climate Protection Weeks in Rhineland-Palatinate.
Höfken discussed new sustainable financing approaches together with Saori Dubourg, member of the Board of Executive Directors of BASF SE and member of the Council for Sustainable Development, Oberkirchenrat Heinz Thomas Striegler, Head of Church Administration of the Protestant Church in Hesse and Nassau and Chairman of the Working Group of Church Investors of the Protestant Church in Germany, as well as Christoph Bals, Political Director at Germanwatch e.V. and member of the Sustainable Finance Advisory Council of the German Federal Government.
According to the Potsdam Institute for Climate Impact Research, the financial sector in particular has one of the greatest levers of influence in the short term to encourage other sectors of the economy to do more to protect the climate. The central tool here is divestment, a withdrawal of capital from markets and products that violate sustainability criteria, such as fossil-intensive industries, Höfken continued. "Rhineland-Palatinate is one of seven German states that has already passed a divestment resolution: The special assets of the state and the funds of state foundations are invested according to sustainable criteria," the minister explained. The Energy Agency Rhineland-Palatinate will support municipalities in the state in establishing divestment approaches in the future, Höfken announced. Here, the discussion is still in its infancy and further development in terms of content is necessary.
Whether municipalities, churches or companies: All players are called upon to examine their investment strategies and invest in a sustainable future. The City of Bonn is one of the pioneer cities with its path to sustainable financial investment. Carsten Buschmann, Head of Department at the City of Bonn, said: "The City of Bonn is pursuing a holistic approach that will be further expanded. Our experience in Bonn has shown that sustainable investing and returns are not mutually exclusive."
Climate Protection Weeks Rhineland-Palatinate:
During the Climate Protection Weeks Rhineland-Palatinate from 12 November to 11 December 2020, experts will discuss concrete instruments and measures against the climate crisis. From climate-efficient construction to climate funds and sustainable management, the events will highlight numerous approaches to achieving climate protection goals. In addition to top-class experts such as Prof. Hans Joachim Schellnhuber, Prof. Claudia Kemfert or Christoph Bals, renowned companies and organisations such as BASF, Boehringer Ingelheim and the European Investment Bank, numerous national and international politicians from Germany, Luxembourg, Rwanda, Canada and the EU will be represented.
Detailed information on the climate protection weeks can be found at here
We use cookies to optimize our website and services.
Functional
Always active
Technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a particular service explicitly requested by the subscriber or user or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that have not been requested by the subscriber or user.
Statistics
The technical storage or access, which is solely for statistical purposes.Technical storage or access used solely for anonymous statistical purposes. Without a subpoena, voluntary consent from your Internet service provider, or additional records from third parties, information stored or accessed for this purpose cannot generally be used alone to identify you.
Marketing
Technical storage or access is necessary to create user profiles, to send advertising or to track the user on a website or across multiple websites for similar marketing purposes.
