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1.  I don't know much about the FDP's internal politics, and the personalities that drive the party.  Its probably the only party that comes close to the Libertarian Party.

However, there is no principled libertarian party in Germany.

(a) It appears to me that the most likely scenario is the  SDP & CDU grand coalition.  It means there will never be a radical economic reform in Germany.  The concept of aboliting the income tax (the most hideous tax) is absolutely foreign to them.  The next close thing was the flat tax, but that is nowhere to be seen either.  So, they are left with (i) a complicated tax system, which probably is 14,593 pages (I am being sarcastic), which only tax lawyers and accountant can understand.  So the little people are screwed, because they can't afford to hire tax lawyers and CPAs to find loopholes in the tax code, (ii) state spending a large portion of the GDP with promises to the future generation that the state will pay for the health care and pension (of course the state has to steal ...ooops tax the money from individuals to pay for the services), (iii) labor market which is not free, but regulated and encourages higher unemployment, (iv) taxes on capital formation, which discourages creation of jobs and business.

Its the same old, same old.

Q:  Why would the FDP want to be associated with a failure?

(b) the second likely scenario is SDP/LP/Green coalition.  See above, except with a much terrible outcome.  

2. Maybe the FDP should sit and watch how Germany is slowly crumbling (low competitiveness, high unemployment, lower state benefits, lower economic growth, higher trade barriers, protectionism, more power to the trade unions, more strikes, etc).

Then, hopefully, either the CDU will adopt free-market, libertarian positions, or maybe (not likely) the voters will vote for the FDP and accept some austere measures for the sake of the future generation.

3.  Full disclosure - the FDP has not paid me for this consultation (haha).  They can hire Nobel Prize economists from the University of Chicago, or the CATO Institute.

by ilg37c on Sun Sep 18th, 2005 at 11:20:25 PM EST
[ Parent ]
after this could please also explain the difference between Manchester Capitalism and Rheinland Capitalism?

(Sorry, it is a slightly snarky request, and I smirkingly accept, that you might be the only L voter in these rows)

by PeWi on Mon Sep 19th, 2005 at 03:52:05 AM EST
[ Parent ]
  1.  I am not an expert either in the "Manchester School of Economics" or in "Rheinland Capitalism."

  2. (a) The Manchester School originated in the 19th Century, because of the desire  for free trade.  I do not believe they had a platform for monetary or tax or fiscal policies; I might be wrong about the latter part, and if so, someone will point it out.  As

(b) I was asked to post a diary about a free trade, and I should spend time to organize it, which I haven't done.  Jerome also thinks a debate about free trade will be good.  There are always two sides of a coin (not equally right), and free trade has its good and its bad.  The question is whether free trade overall is good or bad for more people most of the time. In other words, if the free trade benefits 80 people and hurts 20, on balance its good.  

(c) Sometime, in the past, I posted links that gave three different perspectives in favor of free trade
(i) liberal (minority view, even though Bill Clinton signed and Dems voted for NAFTA), (ii) conservative (majority view, even though Pat Buchanan and others oppose it), (iii) libertarian (overwhelming view).

You can check back at my comments and find out, if you are interested.

(d) My short answer for free trade is simple:  Let Africa and Latin America and Asia (large part) live in  the industrial and agricultural age, and let's move to the information age (space, biotech, nanotech, genetic engineering, health care, internet, etc).  Most people in these industries will make a lot more money than if they worked in metallurgy or meat factories.  

It also means that education (and creative thinking) will become more important because we live in the information age.

by ilg37c on Mon Sep 19th, 2005 at 11:11:44 PM EST
[ Parent ]
Rheinland kapitalism means that a company shows resonsibility for the wellfare of its workforce from the cradle to the grave and not just qhile they worked at a plant, Things such as:

Building and providing houses, pension, 13th Salary at Christmas, cheap holidays, sports facilities, medical facilities.

A tradition that used to be very strong in Germany - introduced not by the state, but by the industrialists themselves.

by PeWi on Tue Sep 20th, 2005 at 12:32:08 PM EST
[ Parent ]
well, unless you just want to tease me, I am very interested to find a strong economic theorist, who brings the University Schoold of Economics opinions to its knees. I think outside the US the concept of libertarianism in economic theory is misunderstood as being liberal-leftist and a beacon of freedom and fairness. I am so laywomanish and uneducated when it comes to that specific school, but I don't trust them for a minute.

They could go on too long to confuse people. To me they are wolves in sheep clothes (or whatever you call it). And if the FDP falls for those theories I just think that they don't know what they are dealing with.

by mimi on Mon Sep 19th, 2005 at 08:04:22 AM EST
[ Parent ]
Instead of studying in the university for economic theories, here are 2 short cuts (but you don't get a degree - haha):

1.  Read this book by Milton Friedman -
FREE TO CHOOSE
Its a fast read.

  1.  Ask yourself a simple question:   Who can solve this economic problem better - an individual (or a group of individuals associated on the basis of freedom) or a state (through its political machinations and bureaucracy)?

  2.   "Hell hath no fury like a bureaucrat scorned."  :-)

Right on.  Next time, use this observation, when a bureaucrat impedes any freedom or progress.  It works every time its tried.
by ilg37c on Mon Sep 19th, 2005 at 10:34:27 AM EST
[ Parent ]
And don't forget the really important question: will this allow me to justify acting in my own self interest without regard for any one else's interests while pretending that its for their own good?
by Colman (colman at eurotrib.com) on Mon Sep 19th, 2005 at 11:11:00 AM EST
[ Parent ]
1. When a baker bakes bread, he does not think about you or me. He doesn't even know about you or me.  

(a) He acts for his self interest - bake bread, make money, to support himself and his family.  Its called the invisible hand.
(b) I take the baker any time over any government bureaucrat.

2. When Bill Gates (or Microsoft) programs a software, he/she doesn't know you or me and doesn't do for our good.  
(a) He did it to have fame, or money, or success, or all of the above.  Or maybe, he was a geek, and couldn't get a date, and now he can.  The end result was a product or service.

(b) I take Bill Gates any time over any government bureaucrat.  Or if you are an Apple fan, I go with Steve Jobs.

  1. The communists had "lofty and noble" goals.  See what it brought too.  Ask Mao, ask Castro, ask Lenin, ask Stalin, ask Pol Pot, ask, ask, ask.

  2.  I let Schroeder and his government programs solve the Germany's social and economic problems.  That of course assumes that the government knows better than the individual.  He believes in it and I salute him.  I want more power and more control under Herr Schroeder.  (smile)
by ilg37c on Mon Sep 19th, 2005 at 10:53:30 PM EST
[ Parent ]

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