Organisers: Bavarian Radio and Television / BR Alpha, Ifo Institute for Economic Research, Open Academy of the Munich Adult Education Programme.
In seven lectures Hans-Werner Sinn presented the main problems facing the German economy, as discussed in his book „Ist Deutschland noch zu retten?“. Each lecture was followed by a discussion with an editor from Bavarian Radio and Television.
The lectures were recorded by Bavarian Radio and Television and were broadcasted in television series by BR Alpha.
Globalisation is inducing more and more German firms to shift labour-intensive portions of the production chain to low-wage countries. Even prominent medium-sized German companies are increasingly relocating production to other countries. Asian countries and more recently also East European countries have become Germany’s competitors in industrial production. Germany is a champion in both labour costs of industrial workers and exports. How is this possible?
The factor labour has become too expensive in Germany and is the main cause of the waning competitiveness of German economy. Industry-wide collective agreements and protection against dismissal are restraining structural adaptations. The results of the union’s high-wage policies are felt in society as a whole because of the welfare state.
The welfare state furthers unemployment. With its substitute wages it creates a virtual minimum wage that the private sector must exceed in order to find labour. In this way the welfare state robs the less qualified of their labour market chances.
Successful economic convergence requires suitable starting conditions and a good degree of flexibility. The collective bargaining conducted by union leaders from the west on behalf of their eastern German colleagues at the beginning of German unification led to high wages for the east German enterprises and took away all their competitiveness. East German businesses have only partly overcome the constraints of industry-wide collective agreements by not applying the collectively bargained wage rates.
The state absorbs 57% of national income for its own purposes. It takes two thirds of wages for additional work, and it burdens future generations with its debts. Forty percent of German voters receive their income in the form of social benefits or pensions from the state.
In terms of population Germany has the least number of newborns in the whole world. This is one reason why pensions in thirty years will only be half as high as today in terms of gross wages. The different causes of increasing childlessness will be discussed including how the current pension system socialises the economic results of childlessness.
The wages of the new EU member states is only one seventh of wages in western Germany and one fifth of wages in eastern Germany. The inflexible domestic labour market does not make it possible to counterbalance the migration stimulus of wage differences, and immigration is forcing less qualified employees to revert to the social net. The new EU Constitution, including the regulations on the freedom of movement, creates a social union and facilitates immigration.
Ist Deutschland noch zu retten? by Hans-Werner Sinn Econ / Ullstein Buchverlage: München/Berlin 2003 to 2005, 579 p. Gebunden mit Schutzumschlag: 8., aktualisierte Auflage 2004, ISBN 3-430-18533-5, 25,00 €; Taschenbuch: 4., aktualisierte Auflage 2005, ISBN 3-548-36711-9, 13,00 € Hörbücher: 13 Audio-CDs, 1 Bonus-CD im MP3-Format, Laufzeit ca. 15:30 Std. Sprecher: Ari Gosch Verlag: TechniSat Digital; Auflage: 1 (Mai 2006) Sprache: Deutsch ISBN 3939048119, 19,90 €
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