Politics costs industrial jobs

Everything will be better in 2025 if

the new government reverses many wrong decisions. The consequences of failed industrial policy are tangible; Germany and its industry have been in free fall for 10 years. Almost 600,000 jobs in the automotive industry disappeared between 2015 and 2020 as a result of the diesel scandal. A further 1,000,000 jobs in energy-intensive industries in Germany have been lost due to coronavirus and the traffic light policy. The social economy is in danger, and the outlook is bleak if things continue as they are._

Frankenthal, December 9, 2024_ - According to n-tv in November, 67% of employees are afraid of losing their jobs. Since Donald Trump's first term in office, industrial companies have been moving abroad. The past 10 years under CDU/SPD leadership already showed clear signs of weakness. Government investment has fizzled out because it has not been invested in education, energy, infrastructure or security.

With the ideological policies of the traffic light government, Germany is in industrial decline within three years. As 20% of GDP is still generated by industry, every job lost there must be multiplied by 5, i.e. if VW closes a plant, for every VW employee made redundant, a further 4 jobs are lost at suppliers, regional companies and tradesmen. From 15 million net taxpayers in 2020, only 14 million will remain in 2025. These jobs finance the welfare state, including all subsidized jobs in the low-wage sector, the public sector, institutes, foundations, the German armed forces, politics and EH - including all the associated pensions, which the 15 million net taxpayers can only dream of.

What remains of the social market economy

Let's not kid ourselves, without the production of goods, an economy is lost. Services, trade or even research, with what and for what? Other governments, above all China and the USA, have already understood this with the financial crisis.

Never in the history of the FRG has capital flight from Germany been so high. Investment in machinery and equipment, in new production facilities or even plants has never been lower. Internationally active manufacturers are only keeping existing plants running and investing abroad. Low taxes, low energy costs, hardly any bureaucracy and a self-confident, grateful and committed workforce can be found there. With 1332 working hours, Germany works less than any other industrialized country in the world. Another problem is inflation: with growth and higher borrowing, inflation will rise again significantly. Hardly any industrial company will then be in a position to accept the salary demands of the trade unions across the entire workforce without cutting jobs.

Between "Dieselgate" in 2015 and 2020, 100,000 employees in the automotive sector have already lost their jobs. The Merkel government's constant haranguing was to blame. Unlike other countries, which quickly dealt with the diesel scandal under criminal law and thus only briefly weakened their own car industry, the Greens kept the issue topical for many years. The constant bashing led to recalls, billions in fines and a massive loss of trust in Germany's leading industry. In addition to the OEMs, SMEs were increasingly affected, with companies such as ZF Friedrichshafen, Continental, Schaeffler, Eissmann and Mürdter as well as SMEs such as Allgaier, Johann Vitz and Schlemmer giving up, laying off large numbers of employees or relocating sites abroad.

The coronavirus lockdown then had little impact - short-time working as a political tool only prolonged the shutdown. In contrast, the effects of the traffic light government were disastrous. Through its subsidy and energy policy, the traffic light government caused an even more significant weakening of the automotive industry and now many other industries, e.g. chemicals and metal production. BASF, Lanxess, Bayer, Evonik, Dow, Covestro and even medium-sized chemical companies such as Heubach and Odenwald-Chemie have given up - basic materials are the cornerstones of an industrial economy.

Hope and optimism have been lost in the industry

Miele and Viessmann were the first family-run companies to take a pessimistic view of the future. In recent years, the willingness to invest in Germany has not only been lost among large corporations, but also across the board, especially among industrial SMEs - the family businesses that politicians like to portray as the basis of our social market economy. The companies are doing this out of sheer necessity, as they are (hopefully) securing the remaining jobs in Germany. A recruitment consultancy for industry in particular is becoming increasingly aware of these problems.

So far, only the private sector (production, trade, commerce, service providers) has suffered. Their incomes are not guaranteed by the state, but require turnover and profit. At the same time, they finance the welfare state and are at risk of losing their income and jobs in the event of a crisis. State employees, civil servants and profiteers such as the ÖRR or social insurance companies have yet to feel the effects of this. The social market economy in Germany has never stood on such a fine line. If the new government does not implement unpopular reforms immediately, the coming year will herald the start of the crisis - with high job losses at manufacturing companies that will never return.

Many reforms would make sense and could be implemented in the short term

I don't just want to complain, I want to make a few suggestions. With almost 7 million people employed in the public sector, I don't believe in less bureaucracy - people want to be employed. But there is a lot that politicians and the government can do:

Concentrate the state on its very own tasks; limit state intervention; promote liberal self-determination; liberal, free, market-based economic policy; allow entrepreneurs to be valued; be open to technology; adjust taxes to the European average; honestly reduce bureaucracy by limiting state employment and public employees to a maximum of 4 million, Abolish half of the 1,300 institutes and universities; further borrowing only for education and infrastructure; promote climate protection, do not force it; flexible retirement; reduce subsidy policy; abolish the citizen's allowance, do not impose the minimum wage politically - sensible integration solves the shortage of skilled workers; expel those not entitled to asylum, security strategy; abolish the rent brake, invest in housing construction; reduce the size of the Bundestag; reduce the number of health insurance funds; reform the public service broadcaster by limiting its budget; reform the EU.

A little pragmatism, education and common sense would be enough to stabilize Germany and - so the hope goes - make it an attractive industrial location again, above all by abolishing the Supply Chain Act and the Heating Act. What is missing is a conservative, reliable, citizen-oriented party with expertise that promotes and appreciates a willingness to perform and take responsibility. A party that does not enrich itself and protect its power, but has the future of our country in mind.

In the hope of a new, industry-friendly and pragmatic government that also implements reforms: Let's go, let's get on with it.

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HSH+S Management und Personalberatung GmbH
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Frau Hanna Star
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hast@hshs.net

HSH+S Personalberatung has been supporting the industry with a focus on professional recruitment since 1994. In executive search, HSH+S personnel consultants find, check and recruit talented individuals and top performers by means of confidential personal direct approach (headhunting).

This release was published on openPR.