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USA: The “private economy” fairy tale

USA: The “private economy” fairy tale

opinion United States of America

The story of the “private economy”

WELT author Alan Posner WELT author Alan Posner

WELT author Alan Posner

Source: Claudius Pflug

In a speech, the CEO of the Deutsche Boerse spoke of the “private economy” based on the American model. The idea of ​​a free economy completely independent of politics is an illusion – even in a country like the USA.

DrThe Bavarian Economic Advisory Board represents the interests of Bavarian companies. Its president is a European MP from the Christian Social Union. It was certainly pure coincidence that a few days before the European Parliament elections, the Advisory Board published an inflammatory speech that the CEO of Deutsche Boerse had already delivered at the Advisory Board meeting in April.

But this does not necessarily mean that the criticism directed at the government by Stock Exchange Chairman Theodor Weimar is wrong. The fact that Weimer was spokesman for the board of directors of the scandal-plagued UniCredit Deutschland bank for many years does not mean that he knows nothing about economics and politics. on the contrary.

That is why the following passage from his speech is so surprising. American businessmen told him: “Stop being a general economist who sits in front of the snake and waits for the snake to bite him.” “It has become a private economy like ours… It doesn’t matter which old man becomes our president, we entrepreneurs run the country.”

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Oof. Radicals on the left and right believe that “capitalists,” “Bilderbergers,” “Davos’s clique,” ​​Rothschilds, or Soros “run” the United States. But the CEO of Deutsche Börse? Perhaps his American friends just wanted to tell him: We corporate bosses don't need Donald Trump or Joe Biden to create prosperous economic landscapes.

Biden's support package is working

But this is also wrong. Trump protected the American economy by imposing huge tariffs, including from European competition. Biden continued and tightened Trump's policies, for example by imposing a punitive 100 percent tariff on Chinese electric cars. Biden's Inflation Reduction Act (IRA), which fuels inflation through government spending, is perhaps Keynes's largest investment program ever.

And it works. The American Clean Energy Association, an association of companies in the solar, wind and hydrogen sectors, says 83 new companies have been created since the IRA was passed; Other companies will ramp up production. So far, $270 billion in subsidies have been received there. Another 53 billion went to electric vehicle and battery manufacturers. Since there is no ceiling – and no brake on debt – spending could reach trillions.

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WELT Chief Economist Dorothea Sims:

Now the entrepreneurs Weimar spoke to probably didn't notice anything about it. Three-quarters of US citizens don't even know what's in an IRA. By the way, you don't have to like the program. It's nice that the United States wants to reduce greenhouse gas emissions by 48 percent by 2035 compared to 2005, and be net-zero emissions by 2050. But protectionist tariffs plus subsidies usually mean less innovation and less productivity.

Whatever the case, the claim that the United States has a “private economy” where corporations don’t care who is president, as Weimer suggests, is just nonsense. Or as they say in the US: bullshit.