70 years of social market economy: a cause for celebration, several occasions for reform
News from 2019-08-20 / KfW Research
How well are Germans really doing? The social market economy has come under criticism. It is claimed that the fiscal burden is weighing on growth, inequality is too high and the economy is poorly equipped to meet future challenges. KfW Research has examined whether this criticism is justified. The results of the analysis show that Germany stands out positively also among the industrialised countries with regard to prosperity, income equality and social security. The need for reform therefore arises not so much from the condition of the country’s social market economy, rather we must make it fit for the future. The most important future issues include maintaining the labour supply despite demographic change, strengthening unity in the EU and cooperation in global trade, digitalisation, climate action and sustainable growth. The study indicates possible courses of action.