analysis
An “economic policy with reason” – this is what the former left-wing politician Wagenknecht wants to work for with her new alliance. However, economists do not consider the previously known proposals to be consistent.
At first glance it seems surprising: the first of four topics that Sahra Wagenknecht presents in her five-page manifesto deals with economic policy.
Even before the more expected criticism of the Russia sanctions appears, there are problems with the infrastructure in Germany: “Dilapidated roads and bridges, dead spots and slow internet, overwhelmed administrations and useless regulations make life particularly difficult for small and medium-sized companies.” A description that many would probably agree with – across party lines.
Importance of the industry – sounds exactly like Habeck
That is also the first impression that Düsseldorf economist Jens Südekum has of the paper: “If you read it like that, many people will nod in many places.” This is also the case when Wagenknecht emphasizes the importance of innovations: “We need more future technologies made in Germany.” And when she emphasizes the special importance of industrial value creation for Germany as a location, it sounds very similar to the presentation of the industrial strategy by Economics Minister Robert Habeck from the Greens.
Wagenknecht even draws on Ludwig Erhard, the father of the social market economy: she advocates fair competition and warns against the market power of large corporations. Some liberal FDP voters could go along with this, but may ask themselves whether this is the same Wagenknecht who vehemently fought capitalism just a few years ago. One of the convinced communist’s books was called “Freedom instead of Capitalism” – with the thesis that capitalism destroys the foundations of democracy. A theory that Ludwig Erhard would certainly not have agreed with.
How does this all come together?
Marcel Fratzscher, the President of the German Institute for Economic Research (DIW), complains above all about the lack of coherence in Wagenknecht’s plans: “On the one hand, she wants an ordo-liberal economic policy where the market dominates and creates creativity and innovation. On the other hand On the other hand, she wants a strong social policy.” But Wagenknecht doesn’t say how it fits together, says Fratzscher. In any case, that is not correct.
In the chapter “Social Justice,” Wagenknecht argues in a classic left-wing manner with topics that – not surprisingly – fit her previous environment on the left, but are also likely to find approval among many Social Democrats and Greens. She is calling for a higher minimum wage and a “reliable welfare state”. Low-income earners should be relieved and rich people should contribute their “appropriate share to the financing of the community”.
Don’t make yourself too vulnerable to attack
It doesn’t get any more specific, which was also evident at the press conference to introduce the new formation: Yes, high assets should be subject to additional burdens, for example with inheritance tax. But no – of course this doesn’t apply to private homes, even if they are in Munich or Stuttgart and worth more than a million euros. Just don’t make yourself too easily vulnerable – that seems to be Wagenknecht’s motto when it comes to economic and social policy issues. Ultimately, she wants to appeal to “everyone who wants a different policy.”
Her colleague, the former entrepreneur and current investor Ralph Suikat, who co-founded the “Tax me now” initiative, in which millionaires campaign for higher taxation, also remains vague: It’s not about putting an additional burden on middle classes; Rather, they want to “ensure that we have fair competitive conditions there through appropriate allowances”. As treasurer, Suikat will take care of the financing of the new party.
A lot remains on the surface
But headlines alone are not enough, says economist Südekum: “When you formulate goals, you also have to say how you want to achieve these goals.” And politicians have to be honest and also identify conflicting goals: “It’s not that easy to want a highly productive medium-sized economy on the one hand and at the same time a maximum of social security.” Here, Wagenknecht stayed on the surface, probably for tactical reasons, and forewent an “operationalizable program,” said Südekum.
In fact, Wagenknecht has the strongest impact where she says what she is against: against economic sanctions against Russia, which in her opinion prevent the import of cheap pipeline gas, against “overreaching digital monopolists”, against “blind activism” on climate issues. However, her current program does not represent a coherent concept for what she wants to do differently instead.