Which economic path is right? Why the economist Moritz Schularick warns against too simple black and white thinking.

Which economic path is right? Why the economist Moritz Schularick warns against too simple black and white thinking.

According to a report from www.tagesschau.de, the economist and head of the Kiel Institute for the World Economy, Moritz Schularick, warns against neglecting social cohesion when necessary changes are made. He emphasizes the importance of a differentiated view and consideration of the political and social effects of state decisions. Schularick sees CO2 pricing as the best approach, particularly with regard to climate protection and CO2 savings, but warns of possible political resistance. He also discusses the option of promoting green energy, but points out that this is a more inefficient way. Schularick emphasizes the need to consider and counteract possible impacts on the socially disadvantaged. He also criticizes the idea of ​​the “subsidy watering can” and emphasizes that there can be economic arguments for supporting innovative companies in key sectors.

Schularick also talks about the challenges that come with returning to national or European interests in a globalized world economy. He warns of the costs involved and notes that Western democracies are not in good shape after decades of globalization. He emphasizes the need to manage transformation processes in areas such as climate, energy, globalization and digitalization and raises the question of the “equipment” required for this.

Regarding China, Schularick warns against overestimating the country's influence on the European and German economies. He emphasizes the importance of a self-confident definition of foreign and security policy priorities and warns against creating too much dependency.

Schularick also criticizes faith-based policy advice and emphasizes the need for a combination of government action and market mechanisms. He sees a potential role for the state in planning grids as part of climate transformation, but points out that state capacity has decreased compared to previous decades.

In summary, Schularick emphasizes the complexity of the economic issues and the need for a differentiated approach. He calls for political and social impacts to be taken into account and for state action and market economy mechanisms to be combined. He warns of possible political resistance and emphasizes the importance of carefully considering the different paths.

Source: www.tagesschau.de