AfD economic policy: expert warns of massive damage

AfD economic policy: expert warns of massive damage

The AfD bases its political approach on an alleged promotion of German prosperity. However, the implementation of their positions could have far-reaching consequences, warns economist Veronika Grimm. While individual citizens could potentially benefit financially, the damage to the entire German economy and future generations would be enormous. According to Grimm, the party is even gradually endangering democracy through its political measures.

Surveys show that many people support the AfD because of its economic agenda. In both state elections in Hesse and Bavaria in autumn 2023, AfD voters particularly emphasized the economic situation as a decisive factor. In current national trends, the party is in second place behind the Union with over 20 percent.

The AfD's demanded “ideology-free economic policy” is in reality strongly influenced by neoliberalism. Measures such as reducing top tax rates, lower minimum wages and a reduction in the welfare state are at the heart of the party program. Veronika Grimm not only criticizes the economic aspects of the AfD, but also warns about the effects of its migration and European policy on Germany and Europe.

A DIW study shows that the AfD policy would ultimately lead to a redistribution of income in favor of higher earners. Although many AfD voters are financially disadvantaged, they believe the party's illusionary promises. People without work and with a migrant background would be particularly affected by the proposed measures. Despite possible short-term gains, Veronika Grimm warns that even the supposed profiteers could be among the losers in the long term.