Quick & New -
the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
The Best Climate Policy Puts Carrots Before Sticks – Article
Monika Schnitzer and Gernot Wagner, Project Syndicate, 08.08.2024
Economists have long insisted that the only way to cut emissions of carbon dioxide and other greenhouse gases rapidly and at scale is to put a price on them. But while that is true, the key to a successful, politically sustainable climate policy is to ensure that the benefits precede the costs.
A Sahm rule for the German debt brake – Article
André Kühnlenz, Makronom, 15.08.2024
The unemployment rate in the USA has just broken through a critical threshold. This has been the case in Germany since 2022, and the German government should take urgent action. A State of Swing blog post by André Kühnlenz.
Aux Etats-Unis, deux ans après l’Inflation Reduction Act, l’eldorado américain entre bluff et réalité – Article (Paywall)
Arnaud Leparmentier, Le Monde, 14.08.2024
Un vif débat concerne la concrétisation des investissements effectués dans le cadre du programme massif de subventions à la transition énergétique lancé par Joe Biden, en août 2022.
Pensions must become much fairer – Article
A column by Marcel Fratzscher, Die Zeit, 09.08.2024
Abolishing the mothers’ pension would not solve the pension insurance system’s problems. We need a basic pension and higher pensions for people on low incomes.
Economist Truger on the economy: ‘The traffic light must not make any more cuts’ – Article
Interview by Simon Poelchau with Achim Truger, Taz, 15.08.2024
If necessary, the traffic light system must step up its growth initiative, advises economist Achim Truger. Because the situation has deteriorated significantly.
Taxing the Superrich Is More Possible – and More Necessary – Than Ever – Article (Paywall)
Gabriel Zucman, Project Syndicate, 06.08.2024
Regardless of nationality, the world’s ultra-rich share two striking similarities: the vast majority are men; and they typically pay much less tax, as a share of their income, than their employees and middle-class workers in general. The concentration of wealth is thus a global issue, and it’s getting worse.
DIW economist on wealth tax: “Up to 17 billion euros” – Article
Interview by Simon Poelchau with Stefan Bach, Taz, 05.08.2024
A tax on wealth could plug many budget holes – even if it only applies to the super-rich, says expert Stefan Bach.
Should rich heirs pay more tax? – Article (Paywall)
Interview by Nike Mosa and Mark Schieritz, Die Zeit, 07.08.2024
No, says Rainer Kirchdörfer, who represents the interests of family businesses worth billions: “That would weaken the German economy. Consumer activist Gerhard Schick disagrees: it is not fair to protect large fortunes more than smaller ones.
Inherit a lot, pay a little – Article (Paywall)
Bastian Brinkmann and Claus Hulverscheidt, Süddeutsche Zeitung, 06.08.2024
The richest corporate scions, of all people, often avoid inheritance tax. A blatant injustice? Not at all: Many federal states consider a reform to be unnecessary.
“There are amazing efforts to prevent climate protection” – Article (Paywall)
Interview by Elena Erdmann with Dieter Plehwe, Zeit Online, 05.08.2024
Heating law, combustion engine phase-out and energy transition: Climate protection is being deliberately thwarted, says political scientist Dieter Plehwe. Also by international networks.
“The reform of the citizens’ income is class warfare from above” – Article
Interview by Steffen Herrmann with Patrick Kaczmarczyk, Frankfurter Rundschau, 29.07.2024
The debate about the citizen’s income continues. Economist Patrick Kaczmarczyk on tougher sanctions on the labor market, wages that are too low and the FDP’s smoke and mirrors.
Will the traffic light coalition break up over the budget dispute? – Article
Mark Schieritz, Die Zeit, 07.08.2024
The government is arguing about whether the plans for the federal budget are constitutional. It is clear to everyone that unraveling the compromise is extremely complicated.
Why a couple of families own half of the equity assets – Artikel (Paywall)
David Böcking, Spiegel, 30.07.2024
Family entrepreneurs often appear in debates as representatives of the middle class. However, many of Germany’s richest people also come from their circle. Why is that?
Kamala Harris must reaffirm her commitment to Bidenomics – Article (Paywall)
Rana Foroohar, Financial Times Opinion, 29.07.2024
The vice-president looks strong, but must be careful to avoid the trap of getting too close to big business.
Kamala Harris and the legacy of Bidenomics – Article
John Cassidy, The New Yorker, 29 July 2024
How the vice-president’s economic approach might build upon, and differ from, that of her predecessor.
Putting the brakes on debt – but very gently – Article (Paywall)
Claus Hulverscheidt, SZ, 31.07.2024
Officially, the Christian Democrats are firmly committed to the debt brake. But the CDU state premiers are putting pressure within their party. And party leader Merz is more flexible than he publicly admits.
Federal budget: constitutional lawyer largely confirms the government’s budget plans – Article
Mark Schieritz, Zeit Online, 01.08.2024
The government wants to circumvent the debt brake using complicated constructs. An expert opinion should assess the legality of this. It is now available exclusively to ZEIT ONLINE.
‘Morally, nobody’s against it’: Brazil’s radical plan to tax global super-rich to tackle climate crisis – Article
Fiona Harvey, The Guardian, 28.07.2024
A 2% levy would affect about 100 billionaire families, says the country’s climate chief, but the $250bn raised could be transformative.
The future of humanity lies in China’s hands – Article (Paywall)
Essay by Adam Tooze, Zeit Online, 29.07.2024
A Donald Trump election victory would be bad for the global climate, yes. But if China actually fails to decarbonize, we will all end up in a disastrous scenario.
“Berlin Declaration”: Economists stand up against AfD and Trump – Article
Alexander Hagelüken, Süddeutsche Zeitung, 23.07.2024
Prominent researchers propose an economic turnaround to stop the rise of right-wing populists. Politicians should say goodbye to neoliberalism and take more care of the people.
***
Definir el nuevo paradigma después del consenso de Washington – Article
Olivier Blanchard, Pascal Lamy, Isabella Weber, Branko Milanovic, Thomas Piketty, Laurence Tubiana, Shahin Vallée, Le Grand Continent, 20.07.2024
De Olivier Blanchard a Thomas Piketty, de Isabella Weber a Laurence Tubiana, unas decenas de firmas de la revista y economistas de primer orden se reunieron en Berlín en una cumbre organizada por el Forum New Economy para definir un nuevo paradigma. Aquí está.
Definire il nuovo paradigma dopo il Washington consensus – Article
Olivier Blanchard, Pascal Lamy, Isabella Weber, Branko Milanovic, Thomas Piketty, Laurence Tubiana, Shahin Vallée, Le Grand Continent, 20.07.2024
Da Olivier Blanchard a Thomas Piketty–da Isabella Weber a Laurence Tubiana, alcune decine di firme della rivista e di altri economisti di primo piano si sono riuniti a Berlino per un vertice organizzato dal Forum New Economy per definire un nuovo paradigma. Eccolo.
***
A New Worldview for Troubled Times – Article
Dennis Snower, Project Syndicate, 23.07.2024
Although markets can promote economic efficiency under the right conditions, there is no “invisible hand” to deliver solidarity, agency, material sufficiency, and environmental sustainability. These four ingredients of human flourishing should serve as the foundation of all our policymaking.
Isolated Germany fears a second Trump term – Article
Guy Chazan, Financial Times, 22.07.2024
The possibility that a new administration could weaken security guarantees and increase tariffs on US imports is causing angst in Berlin.
The power of the billionaires – Article
Heike Buchter, Die Zeit, 24.07.2024
Donations from the super-rich determine the election campaign in the USA. They often reach the candidates via dark channels.
Push for billionaire taxation: “With this plan, you’re picking a fight with the most powerful people in the world” – Article
Christoph Höland, Redaktionsnetzwerk Deutschland (RND), 24.07.2024
The G20 countries are discussing how to make billionaires pay more tax – because they sometimes have lower tax rates than the middle class. One plan in particular is also well received by German experts, but is also controversial.
The demystification of unconditional basic income – Article
Johannes Pennekamp, Frankfurter Allgemeine Zeitung, 23.07.2024
1000 dollars every month for nothing in return: advocates of an unconditional basic income hope that such payments will bring about positive social change. But a major experiment is destroying this dream.
Industrial Policy Is Back. Now What? – Article
Project Syndicate Editors, “PS Big Picture”, 12.07.2024
How to design effective industrial policies has suddenly become a hot – and divisive – topic among economists and policymakers. Even those who agree that governments should intervene in the economy to bolster productivity, increase competitiveness, and tackle social and environmental challenges differ sharply on the details.
Infrastructure funding: Can populism really be combated with money? – Article
An interview by Carlotta Wald, Zeit Online, 29.06.2024
Yes, says economist Robert Gold from IfW Kiel. His new study shows that a functioning infrastructure strengthens democracy. Here he explains how.
Germany, finally abolish this absurd debt brake – Article
Guest article by Martin Wolf, Zeit Online, 18.07.2024
The German fear of debt is insane and dishonest. Germany should invest much more and borrow directly from its citizens.
Inheritance tax: Rich company heirs pay almost no tax – Article (Paywall)
Bastian Brinkmann, Süddeutsche Zeitung, 18.07.2024
Children of family entrepreneurs can be exempt from inheritance tax. Critics see this as an unconstitutional tax loophole.
Is it actually true that … a wealth tax destroys jobs? – Article
Mark Schieritz, Zeit Online, 17.07.2024
Billions are missing from the budget for the coming years. Suddenly a majority of Germans are in favor of a tax on high assets. Where it would help and where it wouldn’t.
We will reconnect the UK with the world – Article (Paywall)
Gastbeitrag von David Lammy, Handelsblatt, 18.07.2024
The new British government wants to intensify relations with Europe. This will strengthen both sides, for example in the fight against Putin’s fascism, says Foreign Secretary David Lammy.
Starmer’s people are returning class to the centre of politics – Article
George Eaton, The New Statesman, 17.07.2024
The Prime Minister’s class-conscious and interventionist government owes more to Harold Wilson than to Tony Blair.
US star economist Acemoğlu on Trump and right-wing populism: “It could be much worse now than eight years ago” – Article (Paywall)
An interview by Michael Sauga, Spiegel, 16.07.2024
US economist Daron Acemoğlu accuses the center-left parties of betraying the interests of their core electorate. He says: “If Donald Trump comes to power, America will be threatened by a dictatorship.
Philosopher on radical criticism of the system: “Many are not doing well at all”– Article
An interview by Tobias Bachmann, Taz, 15.07.2024
Philosopher Lea Ypi wants to establish a “moral socialism”. This would also help against the right. A conversation about freedom and responsibility.
Progressive politics: The wrong security – Article (Paywall)
Rainer Forst, Zeit Online, 17.07.2024
Isolation is not the answer to the far-right threat. A new policy of justice is needed, says political philosopher Rainer Forst.
Moving Beyond Neoliberalism? Historical Reflections on Regime Changes in Global Economic Governance – Article
Hagen Schulz-Forberg, Carnegie Endowment for International Peace, 17.07.2024
Faith in hyper-globalization has collapsed, but what new narrative and institutions will succeed it? A look at the past provides hints of what is to come. This essay is part of a series of articles, edited by Stewart Patrick, emerging from the Carnegie Working Group on Reimagining Global Economic Governance.
OUR MAIN TOPICS
New Paradigm
NEW PARADIGM
After decades of overly naive market belief, we urgently need new answers to the great challenges of our time. More so, we need a whole new paradigm to guide us. We collect everything about the people and the community who are dealing with the question of a new paradigm and who analyze the historical and present impact of paradigms and narratives – whether in new contributions, performances, books and events.
Redefining
the role of
the state
REDEFINING
THE ROLE OF
THE STATE
For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.
Remaking
finance
REMAKING
FINANCE
More than a decade after the financial crisis there still seems to be something seriously wrong with the financial system. Financial markets still tend to periodically misprice risk and contribute to boom and bust cycles. A better financial system needs to discourage short-termism and speculative activity, curtail systemic risk and distribute wealth more broadly.
Greening
prosperity
GREENING
PROSPERITY
During the high point of market orthodoxy, economists argued that the most 'efficient' way to combat climate change was to simply let markets determine the price of carbon emissions. Today, there is a growing consensus that prices need to be regulated and that a carbon price on its own might not be enough.
Reducing
inequality
REDUCING
INEQUALITY
The rising gap between rich and poor has become a threat to social cohesion in most rich countries. To reverse this trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.
Innovation Lab
INNOVATION LAB
Do we need a whole new understanding of economic growth? What would be a real alternative? How viable are alternatives to GDP when it comes to measuring prosperity? These and other more fundamental challenges are what this section is about.
Globalization
for all
GLOBALIZATION
FOR ALL
After three decades of poorly managed integration, globalization is threatened by social discontent and the rise of populist forces. A new paradigm will need better ways not only to compensate the groups that have lost, but to distribute the gains more broadly from the start.
Europe
beyond markets
EUROPE
BEYOND MARKETS
The euro was planned during a period in which economic policy making was driven by a deep belief in market liberalism and the near impossibility of systemic financial crises. This belief has been brought into question since the euro crisis, which showed that panics do happen. New thinking needs to focus on developing mechanisms to protect eurozone countries from such panics and to foster economic convergence between members.
Corona Crisis
CORONA CRISIS
The current Corona crisis is probably the worst economic crisis of the post-World War 2 era. Economists are working hard on mitigating the economic effects caused by COVID-19 to prevent a second Great Depression, the break-up of the Eurozone and the end of globalisation. We collect the most important contributions.