Germany affords itself a state bureaucracy that functions like an artificial labor market placed upstream of the private sector. The flight of hundreds of thousands into the arms of the state corresponds with the shrinking number of self-employed in the country. And policymakers are actively promoting this trend.
Let us begin with a piece of good news: according to a Bertelsmann survey, around 40 percent of Germans aged 15 to 25 can imagine starting a business as their personal life path. That is a surprisingly high figure in a country where young people not infrequently cite, half-jokingly and half-seriously, Hartz IV or the public sector as career goals.
Let us note: the embers of entrepreneurship in Germany are still glowing; economic autonomy and sovereignty still rank highly among the younger generation. However, it is questionable whether this will suffice to ignite, one day, a true founding boom in a country of climate transformation, deeply rooted faith in the state, and an expansive public sector—a boom that could force a turnaround and help erase the long-accumulated sins of climate socialists.
But we digress. Romantic youthful ideals carry little weight in the leadership circles of the Berlin Republic. There, the ideal of free enterprise collides with the cultural-political malaise of statism—one of many politically induced fault lines of our time. Entrepreneurial action, the free decision over the allocation of capital, inevitably carries conflict potential in a climate of manically enforced eco-transformation.
In attempting to transform the existing economic order into a system of state-directed energy production and centrally steered industrial output, policymakers are pushing a growing number of mid-sized enterprises either into insolvency or straight abroad. No one should be surprised by the country’s economic depression: there is a price to be paid for handing over the economic crown jewels—such as nuclear power or automobile manufacturing—to ideological zealots.
It is hardly surprising that the fury of the socialist “firewall cartel” is also directed at entrepreneurs, who serve as one of the silent barriers against the barbarism of socialism. In Germany, it is all too easy for politicians to distract from their own failures with envy debates, resentment, and instruments such as inheritance or wealth taxes. If you want to understand how this script works, recall the embarrassing entrepreneur-bashing by the labor minister and her finance minister just a few weeks ago. This is not an entrepreneur-friendly climate—neither fiscally nor socially.
One should therefore not be surprised: economic decline is inevitable, and it is increasingly visible in the compressed real incomes of citizens. They are grappling with a distorted labor market, rising inflation, and ongoing poverty migration—a toxic brew for a society that has, in large part, lapsed into an apathetic and strangely muted “degrowth mode.”
As mentioned: why still have entrepreneurs if, in the end, the state—with unlimited credit and the iron hand of the supreme regulator—directs economic activity? Economist Lars Feld estimated total subsidies last year at €321 billion, corresponding to seven percent of the country’s entire economic output. Put more bluntly: a Mount Everest of corruption money, actively tracked down by dubious subsidy entrepreneurs who, in doing so, help construct the redistribution machinery of the green transformation. A devilish system that casts anyone enriching themselves from taxpayers’ money in an extremely unfavorable ethical light.
Hellbound and Down 
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