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the New Economy Ticker
The latest news, debates, proposals and developments on new economic thinking at a glance.
The old US economic policy is dying and the new cannot be born – Article (Paywall)
Adam Tooze, Financial Times, 07.10.2024
Industrial rivalry and tensions with China frame a confused debate about the pressures of globalisation.
How economists are ruining our economy and dividing society – Article
Tom Krebs, Makronom, 07.10.2024
Germany is in a permanent crisis. This is due to the misdiagnoses of market-liberal economists who have found too much favour in politics. An article by Tom Krebs.
The perils of America’s chips strategy – Article (Paywall)
Rana Foroohar, Financial Times, 07.10.2024
Progress has been made at home, but what comes next abroad will make a big difference.
Harris’ ‘Opportunity Economy’ Closes The Economic Gap With Trump – Article
Richard McGahey, Forbes, 30.09.24
With a little more than 30 days left until the presidential election, Kamala Harris is emphasizing an “Opportunity Economy” as a centerpiece of her campaign. Although Donald Trump held a substantial polling lead over Joe Biden on economic issues, Harris is now virtually even with Trump on economics. How is her program closing the gap?
Top economist defends 1,000 euro premium – Artikel
Mark Schieritz, Zeit Online, 07.10.2024
The incentive to work for welfare recipients has been sharply criticised. Simon Jäger, one of the world’s leading labour market experts, now supports the idea.
Auto industry crisis is ‘receipt for ten to 15 years of management mistakes’ – Artikel (Paywall)
Jan Lutz, Clara Thier, Lina Knees und Martin Müller, Handelsblatt, 03.10.2024
Jens Südekum believes that the plight of German car manufacturers is self-inflicted. He also blames politicians. In an interview, he proposes a new bonus – but not for scrapping cars.
EU plans radical reorganisation of the budget – Artikel
Hendrik Kafsack, FAZ, 06.10.2024
Aid for refugees, social housing or organic farming: the EU wants to link financial support to reforms and goals, among other things. However, not everyone is enthusiastic about this.
„We have reached a critical point“ – Artikel (Paywall)
Intreview by Bernd Kramer, 24.09.2024
The American-Serbian economist Branko Milanović on growing inequality, our fatal illusion of living in a classless society – and the real problem of the constant technological revolution.
The debt brake is unique in the world – and uniquely dangerous – Artikel (Paywall)
Philippa Sigl-Glöckner, Wirtschaftswoche, 30.09.2024
The German debt brake is economically ill-founded and has undesirable effects. Why are we holding on to it? A guest article.
Kamala Harris’s Campaign Thinks She Can Win on the Economy. Here’s How. – Article (Paywall)
Shane Goldmacher, 26.09.2024, New York Times
Harris advisers point to a number of brightening public polls showing that Donald Trump’s lead is eroding on the critical question of whom voters trust most on the economy.
Harris Has a Manufacturing Agenda—in a Fact Sheet – Article
Her speech on the economy was guarded. The details laid out by the campaign paint a brighter picture.
David Dayen, The American Prospect, 26.09.2024
Trumponomics: the radical plan that would reshape America’s economy – Article (Paywall)
Colby Smith, Claire Jones and James Politi, Financial Times, 23.09.2024
In a bid to boost manufacturing, the Republican candidate is promising sweeping tariffs. Critics warn they would cause huge damage and heighten global tensions
The mastermind of the new right-wing populism – Article (Paywall)
Essay by David Bebnowski and Quinn Slobodian, Zeit Online, 28.09.2024
Hardly anyone in Germany knows Murray Rothbard. Yet his idea of a ‘paleo-coalition’ has not only influenced Javier Milei and Donald Trump, but also the AfD.
Leading economists are calling for the EU to promote workers rights. – Article
Tina Groll, Zeit Online, 30.09.2024
Over a hundred economists led by Thomas Piketty are calling for fairer wages from the EU. When it comes to contracts, the lowest price should not be the only deciding factor.
German Economy: “This crisis cannot be explained by ruined roads ” – Article (Paywall)
Interview: Marcus Gatzke und Marlies Uken, Zeit Online, 26.09.2024
The economy is simply not picking up speed. Why? Economist Tom Krebs on false faith in the market, the rise of the AfD and the underestimated consequences of the energy crisis.
New EU fiscal rule underestimates the dampening effect of saving – Article (Paywall)
Philipp Heimberger, Handelsblatt, 30.09.2024
The EU Commission is ignoring the extent to which its budget consolidation targets are dampening economic growth in Italy, for example. This is also harming Germany, warns guest author Philipp Heimberger.
The reformed Stability and Growth Pact jeopardises Europe – Article
Jan Ovelgönne and Achim Truger, Focus Online, 22.09.2024
The latest reform of the Stability and Growth Pact (SGP) was actually intended to ensure financial stability in the EU and promote growth. However, it now threatens to have the opposite effect.
Green financial politicians want to abolish tax privileges for the rich – Article
Christoph Schult, Spiegel, 27.09.2024
A Green Party paper calls for an end to the tax exemption of profits from property sales and a ‘billionaires’ tax’. One of the authors is Andreas Audretsch, the party’s designated future campaign manager.
Industrial Policy as Democratic Practice – Article
Amy Kapczynski, Democracy: A Journal of Ideas, 25.09.2024
Industrial policy can strengthen both our economy and our democracy—but we have to do it right.
The dangers to democracy have a new name: How the fight against the right succeeds – Article
Thomas Gebauer, Frankfurter Rundschau, 23.09.2024
The Berlin Summit Declaration calls for a change of direction to combat right-wing populism. The ‘Gastwirtschaft’ column.
Draghi plan is the only way to prevent Germany’s deindustrialisation – Article
Marcel Fratzscher, Focus Online, 14.09.2024
Former ECB chief Mario Draghi is calling for billions in investment and joint European debt – unthinkable for Finance Minister Lindner. But there is no alternative if the deindustrialisation of our economy is to be prevented, explains DIW President Marcel Fratzscher in this guest article.
Why the Draghi report is a huge opportunity for Germany – Article (Paywall)
Lucas Guttenberg, Nils Redeker und Sander Tordoir, Handelsblatt, 17.09.2024
Germany is at the centre of the crisis. Draghi’s analysis is above all an offer for us to solve the problems in the EU.
Draghi is trying to save Europe from itself – Article (Paywall)
Martin Wolf, Financial Times, 17.09.2024
His report on competitiveness presents the EU with an ‘existential challenge’
What’s wrong with research about ‘degrowth’? – Article (Paywall)
Financial Times, Soumaya Keynes, 20.09.2024
Some recent reviews highlight vague language and fuzzy policy.
What a Successful Industrial Policy Needs – Article (Paywall)
Pinelopi Koujianou Goldberg, Project Syndicate, 17.09.2024
New research on the importance of cross-border knowledge and technology spillovers suggests that government support alone cannot guarantee success in an industry. That is why Taiwan and South Korea’s semiconductor industrial policies succeeded, while China’s has not.
Do something already! – Article (in German)
Commentary by Mark Schieritz, Zeit Online, 10.09.2024
First former central bank chief Mario Draghi called for it, then even industry: Investments worth billions are needed. Or Germany’s decline is guaranteed.
Does it have to be like this? – Article (in German; Paywall)
Guest article by Philippa Sigl-Glöckner, Die Zeit, 11.09.2024
The debt brake has been in the German constitution for 15 years. On the origins of a rule that was well-intentioned but now prevents good policy.
Economists are open to higher debt – with one exception – Article (in German)
Stephan Balling, Das Parlament, 06.09.24
More funds are needed for the Bundeswehr and infrastructure. Economists are discussing a new special fund and a reform of the debt brake.
Mario Draghi calls for joined-up thinking in Europe – Article (Paywall)
FT Free Lunch Newsletter by Martin Sandbu, 12.09.2024
When it comes to lifting EU productivity, fortune will favour the bold
Harris Can Win on the Economy, but She Needs a Stronger Message – Article (Paywall)
New York Times Opinion Piece by Jedediah Britton-Purdy, 12.09.2024
In Tuesday’s debate against Donald Trump, Kamala Harris emphasized her middle-class background, her admiration for small business owners and her plans for an “opportunity economy.” She promised tax credits for young families and support for first-time homeowners. Those attempts to put meat on the bones of her economic plan will not be enough to win the presidential election.
A New Trilemma Haunts the World Economy – Article (Paywall)
Dani Rodrik, Project Syndicate, 09.09.2024
It may be impossible simultaneously to combat climate change, boost the middle class in advanced economies, and reduce global poverty. Under current policy trajectories, any combination of two goals appears to come at the expense of the third.
An investment rule as the centrepiece of a reform of the German debt brake – Article
Tom Krebs, Makronom, 04.09.2024
The traffic light coalition is also planning an FDP austerity policy for the coming year with a green-red tinge. The debt brake could be reformed in such a way that additional public investment expenditure is made possible by borrowing. An article by Tom Krebs.
‘In hardly any other country is wealth distributed as unequally as in Germany’ – Article (Paywall)
Interview von Thore Rausch, Süddeutsche Zeitung, 30.08.2024
Für ihr Buch „Crazy Rich“ hat sich Julia Friedrichs auf die Suche nach den Multimillionären Deutschlands gemacht. Ein Gespräch über Superyachten und Steuervermeidung.
Open flanks of the traffic light coalition – A major reorganisation needs a lot of participation – Article
Petra Pinzler, Neue Gesellschaft | Frankfurter Hefte, 02.09.2024
Nobody wants to be ‘transformed’, ‘dynamised’ or ‘modernised’. So in order to turn the theoretical idea of transforming the country into good policy, the traffic light coalition should have become concrete much more quickly. Through massive investment in infrastructure and services of general interest, through good laws and rousing stories. To take the threat out of change.
‘The China shock is destroying Europe’s core industry’ – Article (Paywall)
Gustav Theile and Patrick Welter, FAZ, 04.09.2024
Twenty years ago, the first China shock hit the USA. Now the second is jeopardising Germany’s economic backbone, warns economist Sander Tordoir.
How national security has transformed economic policy – Article (Paywall)
Sam Fleming, Demetri Sevastopulo and Claire Jones, Financial Times, 04.09.2024
Nationalism is reshaping the global economy. In the first in a series, the FT explores how fears about spying and dual-use technologies have eclipsed free market orthodoxy.
Packages for the super-rich – Article (Paywall)
Thomas Fischermann, Die ZEIT, 04.09.2024
Wealth taxes could help the climate, but the fear of tax evasion is great. A new proposal has now come from Brazil.
How fair is inheritance in Germany? – Article
Kristin Langen, Fluter, 03.09.2024
This issue has long been the subject of dispute. The Federal Constitutional Court is soon to rule on it. Time to take a closer look at the debate.
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.