The social market economy

The social market economy has made Germany ascend to one of the world’s leading industrialized nations. Nevertheless, they can only bring prosperity for all, if the basic principles: freedom, competition, liability, performance justice and solidarity are respected. What happens if they are ignored can be particularly impressive show on the example of the energy sector.

In a functioning market economy, businesses produce goods or provide services that are in the market looking for customers. In the market competition put on by duration only offers that are actually in demand.

In a liberal economic, order the goods supply works far better than in any state planned economy.For such an economic system can by state frameworks to ensure fair competition. In addition, the compliance with social standards in working conditions and the protection of the environment must be ensured.Nevertheless, what has been proven in many decades gets under increasing economic pressure schedule. Particularly scorned the market economy in the energy sector.

For 14 years, we guarantee to producers of renewable energy, differentiated by photovoltaic, biomass and wind, for two decades, beginning with the start fixed fees for the electricity fed into the grid. The bill mainly private consumers pay future with almost 5.3 cents per kilowatt-hour.

The result of this market intervention is well known. More than half of the 20 billion euros already expensive annual green fee goes into the most inefficient form of renewable energy. German manufacturers who benefited at the beginning or from the glossy promotion of this technology are long gone from the market. Chinese solar cells now dominate the German roof landscapes.

At the same time, conventional power plants are kept in readiness. Even for non-supply of electricity from offshore wind, energy is to be paid in the future, if the lack of network expansion is responsible. Of course, the taxpayers will be responsible for the network expansion, which was in the old world energy market still financed by utilities.

Another planned economic construction site appeared on the way already on the horizon. The automotive industry is suffering huge overcapacity. In France, the state is trying to save Peugeot; Opel in Germany once again is the focus.