Michael Otto: Does innovation provide the solution for the German economy?

Michael Otto: Does innovation provide the solution for the German economy?

In a recent conversation with Sandra Maischberger, entrepreneur Michael Otto shed light on the challenges of the German economy and his own family's roots as refugees. The Otto family came from West Prussia and lived in modest circumstances in Hamburg, in a two-room apartment without a bathroom. These experiences shaped Otto and motivated him to become an entrepreneur. At this time, his father founded a shoe shipping company, which laid the foundation for the company's current success.

Otto expressed concern about the current state of the German economy. He believes more investment in innovation and jobs is essential to increase productivity. “Productivity improvements create the best conditions for reducing working hours or increasing wages,” he emphasizes. As part of its financial policy, Otto demands that the debt taken on - whether for the Bundeswehr or for investments - is fundamentally correct, but admits that long-term debt-based financing could be problematic.

Responsibility and sustainability

Another central concern of Otto is the responsibility of companies with regard to production conditions. He advocates an effective one Supply Chain Act that should encourage companies to comply with social and environmental standards. This is a step in the right direction to ensure sustainable and high quality products.

In view of the growing competition from companies like Amazon, Otto is still optimistic about the development of his company. He plans to continue to focus on quality and sustainability and select partners who share similar values.

Economic effects of immigration

The discussion about the economic effects of immigration has become more important in recent years. The proportion of the foreign-born population in OECD countries rose from 7% in 1990 to over 12% in 2019. In Germany and the USA this proportion is around 15%, and in Australia and Switzerland it is almost 30%. However, these changes do not come without controversial debates. Critics fear that migration could take away jobs and depress wages, while supporters argue that immigration is essential for social systems in aging societies and promotes economic growth and productivity.

The economic impact of immigration is complex and context-dependent. Immigration can increase demand for goods and services, which leads to greater demand for labor. In the short term, there could be negative effects on the labor market, but empirical studies show that highly qualified immigration usually leads to positive effects on the economy as a whole. What is particularly important here is the qualifications of the migrants, which largely determine the influence on wages and employment.

In summary, both Michael Otto and the broader debate about immigration emphasize the need for innovation, sustainable business and timely adaptation to social changes. The challenges are great, but at the same time they also offer opportunities for growth and improvement.