Germany debates capitalism... what will happen?

[DanS]

German capital doesn't stick to Germany anymore because comparatively it's not a good place to invest. The solution is to make it a good place to invest. That's where a Reagan or Thatcher could do wonders.

In fact, the Rhine capitalism and the German welfare state are basically their baby. The Christian Democrats always promoted a strong welfare state and it would probably be their end as a big party if they abandonded their pro welfare stance.

This is true, but they might find more support than you believe for truer liberal policies.

[kronic]

Originally posted by Spiffor

1. I would make the management of a company accountable to the workers instead of the shareholders. That would seriously discourage foreign investment, and other kinds of pillage of the company's production. But that's the Commie speaking.

2. I would harmonize the EU so that its territory progressively reaches the highest social system (Sweden, Finland), instead of competing for who has the worst conditions. That's because most of the wealth transfer from Germany goes to other European countries (Eastern ones especially). The day germany reacts by using Thatcherite policies is the day where the Easterners will have to have even lower wages, and even worse working conditions in order to remain comparatively attractive. Save for the capitalists (who-'ll make out like bandits), everybody will lose from the situation

Scandinavia.

Btw, polls indicate that ~66 % share Müntefering's criticism of capitalism. Obviously many voters of the Christian Democrats agree...

[Spiffor]

Originally posted by DanS
German capital doesn't stick to Germany anymore because comparatively it's not a good place to invest.

And it is also because it is in the hands of people who only see their returns, and who don't care about Germany's economic well being. This much has changed, and it's a huge difference in comparison with the past. Before, the German investors would have tolerated some comparative disadvantage (as long as the capital would be profitable, which it is), because the whole system was oriented toward the economy of Germany, and not toward the pockets of a happy few.

[DanS]

Investors are being taken for a ride in Germany. Before, they tolerated it because they were forced to tolerate it. But they're waking up to the reality and voting on the system with their capital. They can enjoy over twice the real return on their money by moving it to the US, Australia, or even Sweden. France is a pathetic place to invest as well.