Germany is facing a prolonged economic stagnation crisis, according to several economists. Since 2019, before the COVID-19 pandemic, the gross domestic product has only increased by 0.3 percent, according to the Alternative Wirtschaftspolitik working group in their “Memorandum 2025” as reported by “nd.DerTag.” The group suggests that public investments in infrastructure and the stabilization of social security systems are necessary. Without fundamental, socially just reforms to the pension system, there is a risk of increasing poverty in old age and rising costs, according to the study’s co-author, Bremen economist Rudolf Hickel, who spoke to “nd.” The working group has been presenting their memorandum on Labor Day for 50 years. In contrast to neoliberal economists, they call for an alternative economic policy for good jobs, distributional justice and ecological sustainability. However, the reality is different, as stated in the memorandum: “Instead of expanding the rule-based global economy fairly and fighting the climate crisis, nationalist-authoritarian Trump imperialism dominates and threatens to undermine multilateral climate agreements.
Experts Call for Urgent Action and Stabilization Measures.
