Capitalism in Crisis: The Broken Pact with the People - SPIEGEL ONLINE - News - International
By Dirk Kurbjuweit Trust capitalism and shun government interference we were told. But irresponsible bankers saw a chance to get rich quick and went for it. Their failure has become ours -- and the promise of a common good has evaporated along with faith in democratic capitalism....Who would have thought that Ackermann would one day join the ranks of Germany's unemployed and low wage earners in asking for government aid? The poor had long hoped that the state would help them out of their economic plight. People like Ackermann though -- those who place a great deal of faith in the power in the power and freedom of the individual -- blasted them. Now, taxpayers are expected to help Ackermann's industry out of a jam. The insanity of the situation becomes clear when we look back to the years 2003 to 2005. At the time, then-German Chancellor Gerhard Schröder of the center-left Social Democrats pushed through his Agenda 2010 reform package. Long-term unemployment payments were scrapped. Those who lost their job knew that time was short before benefits would shrink to those mandated by the new welfare plan known as Hartz IV. During those years, the economic debate was dominated by true-blue capitalists who sought to limit government intervention. This was the heyday of a neo-liberal ideology that placed its faith in the strengths of the individual and the free market. The word "government" became virtually synonymous with harassment, suffocation, inefficiency and a lack of freedom. Deregulation was the magic formula of the day. Trust Us This was the theme music -- played by politicians, business people and journalists -- that accompanied Agenda 2010, an orgy of black-and-white thinking that glorified the individual and demonized the state. But Agenda 2010 was the right approach. The reforms didn't go too far; actually, they should have gone even further. They should have harnessed the political momentum at the time to prepare Germany's healthcare and convalescent care systems for the challenges of the future.
...Who would have thought that Ackermann would one day join the ranks of Germany's unemployed and low wage earners in asking for government aid? The poor had long hoped that the state would help them out of their economic plight. People like Ackermann though -- those who place a great deal of faith in the power in the power and freedom of the individual -- blasted them. Now, taxpayers are expected to help Ackermann's industry out of a jam.
The insanity of the situation becomes clear when we look back to the years 2003 to 2005. At the time, then-German Chancellor Gerhard Schröder of the center-left Social Democrats pushed through his Agenda 2010 reform package. Long-term unemployment payments were scrapped. Those who lost their job knew that time was short before benefits would shrink to those mandated by the new welfare plan known as Hartz IV.
During those years, the economic debate was dominated by true-blue capitalists who sought to limit government intervention. This was the heyday of a neo-liberal ideology that placed its faith in the strengths of the individual and the free market. The word "government" became virtually synonymous with harassment, suffocation, inefficiency and a lack of freedom. Deregulation was the magic formula of the day.
Trust Us
This was the theme music -- played by politicians, business people and journalists -- that accompanied Agenda 2010, an orgy of black-and-white thinking that glorified the individual and demonized the state.
But Agenda 2010 was the right approach. The reforms didn't go too far; actually, they should have gone even further. They should have harnessed the political momentum at the time to prepare Germany's healthcare and convalescent care systems for the challenges of the future.
He goes on to claim that the problem is people not capitalism; and people adopting US-style capitalism that gambles instead of conservative German business practices.
It was hard enough pushing through Agenda 2010. But the current crisis is making Germany virtually unreformable. Now nobody will follow politicians who say that you have to do good things for the economy so that everyone benefits. People will laugh out loud should anyone say that freedom leads to the best results. It is no coincidence that gamblers have created this chaos, people who fabricate unreal worlds where they can seek their happiness.
It is no coincidence that gamblers have created this chaos, people who fabricate unreal worlds where they can seek their happiness.
The Black Autumn: In Search of the Visible Hand - SPIEGEL ONLINE - News - International
By SPIEGEL Staff There is an air of desparation in European capitals and in the United States as politicians try to stop the global financial meltdown. The crisis has grown into a major test for the government of Angela Merkel. On Monday, Berlin signed off on a major bailout package.
There is an air of desparation in European capitals and in the United States as politicians try to stop the global financial meltdown. The crisis has grown into a major test for the government of Angela Merkel. On Monday, Berlin signed off on a major bailout package.
eeerie. In the long run, we're all dead. John Maynard Keynes
