Germany's export surpluses: Where is the economic restructuring leading?

Germany's export surpluses: Where is the economic restructuring leading?

Germany faces significant challenges in its trade policy, which are characterized by increasing export surpluses, especially with the USA. Despite the successes in free trade, the EU Commission, the International Monetary Fund (IMF) and numerous economists express sharp criticism of German economic policy. This rejects an urgently needed paradigm shift towards greater consideration of the domestic economy. The profits of export-oriented companies flow primarily into the pockets of the owners, while the income growth of employees lags behind the rate of productivity and price increases. This makes a redistribution from bottom to top clear, with other countries increasingly becoming debtors due to Germany's export surpluses. Germany itself consumes less than it produces and exports unemployment to these countries.

In the context of these economic conditions, there was a further escalation due to the trade policy measures of the US government under Donald Trump. The former president imposed high punitive tariffs on German exports, particularly 50% on steel and aluminum. These policies led to a discussion about the need to rethink dependence on export markets in order to secure Germany's economic location in the long term.

Urgent renovation required

German economic policy faces not only internal challenges, but also external pressures that require a transformation towards a domestic economy. Political interventions and a comprehensive macroeconomic planning concept are required to solve the structural problems of export orientation. Part of this discussion is that Germany should import more fossil energy from the USA, which further increases its dependence on American markets.

In the context of the global economic order, it is clear that Trump's economic policy has significant effects not only for the USA, but also for Germany. He relies on an aggressive foreign policy that is based on the economic interests of the USA. This strategy could end the era of free trade and tariff increases. Trump himself has not only threatened new tariffs, but has also discussed eliminating the income tax, which could have significant financial implications.

Criticism of neoliberal approaches

The contradictions in Trump's economic views are evident. He does not see the growing income gap between rich and average citizens as a problem and is against a rules-based international economic system. In contrast to previous neoliberal approaches, Trump's policies show signs of a nationalist-authoritarian neoliberalism that runs the state like a real estate company and, above all, strives for size and power.

In this mixed situation, the necessary restructuring of the German economy is even more urgent. The current external and internal challenges not only raise questions about competitiveness, but also about social justice in Germany. The economic order must reflect not only the needs of the export markets, but also those of the local population and the entire European community.