[Review] Albrecht Müller - Believe little, Question everything, Think for yourself - Economic Motives 2020-06-06

Albrecht Müller (SPD) was born in Heidelberg in 1938, he is a graduate in economics, author, publicist and still a member of the SPD (Sozialdemokratische Partei Deutschlands/Social Democratic Party of Germany). In 1972 Müller (SPD) led the election campaign for Chancellor Willy Brandt (SPD) who was in office from 1969 to 1974. From 1972, Müller (SPD) headed the planning department under Willy Brandt (SPD) and Helmut Schmidt (SPD). Between 1987 and 1994 Müller (SPD) was also a member of the German Bundestag. [1] [2]

Democracy is often used synonymously with self-determination. In fact the intersection depends on the degree of manufacturing of consent and the external influence on the public debate. As a result political decisions are made under the influence of individual interest groups. And Müller (SPD) has made it his goal to uncover the manufacturing of consent he diagnosed through the media, politicians and political parties. For this Müller (SPD) wrote this and other books and has co-initiated the NachDenkSeiten blog and writes there regularly. [1] [2]

  1. Agenda 2010
  2. Riester Pension
  3. Banks

Agenda 2010

One of the economic motivations according to Müller (SPD) for manufacturing of consent is the implementation of the interests of employers and investors in general. Müller (SPD) explains how several actors assert their interests using different means. And this campaign propagates higher corporate profits, low wages and foreign trade imbalances as useful for everyone. Language rules are used for this to propagate that the labor market is too inflexible, that wages or ancillary wages are too high. Untruths or half-truths are propagated such as that demographic change and globalization are the two major challenges of our time or export surpluses are good and we are doing well. [1,p.22-24] [1,p.34-36] [1,p.78-80] [1,p.105-117]

The Agenda 2010 was accompanied by Chancellor Gerhard Schröder (SPD). It liberalized the labor market in Germany which means that loan and temporary contracts were made easier and protection against dismissal has been relaxed. The implementation of Agenda 2010 was also promoted by the fact that there is a backlog of reforms (Reformstau) thus reforms are good. In addition the way of thinking behind the Agenda 2010 such as you make your own luck or when everyone thinks of themselves, everyone is thought of was propagated. In contrast the reforms under Chancellor Willy Brandt (SPD) were disparaged as reformitis or reform-odds (Reformklimbim). However these aimed at a better welfare state and a higher standard of living. [1,p.93-97] [1,p.97-100]

The single market of the EU and the euro currency are still praised by many. With the free movement of goods and services trade has become easier for everyone. But the membership in the EU's internal market also allows for a liberal economic free trade within the extremely unequal competition and criticizes wage dumping. Member States must then continue to compete with those who have very different labor costs or labor productivity. Then high-wage countries from Western Europe have to compete with the low-wage countries from Eastern and Southeastern Europe. With the euro the complicated exchange rates have been eliminated. In addition the national currencies of various countries from southern Europe would no longer regularly devalue. But these are the reasons for the continued crisis of the euro and the economies of various member states.

If within a monetary union such as the euro currency the exchange rates fall away then this means that countries can no longer balance their foreign trade balance by revaluing theit currency. However the export surpluses of one country displace jobs in countries with an export deficit. The local economy is being replaced by imports. The countries with export surpluses are thus operating at the expense of other countries and exporting unemployment to other countries. A monetary union like the euro currency an even development of wages and labor productivity in all member states must occur. But this was not the case and is the reason for the continued crisis of the euro and the high unemployment rates in the Member States of Southern Europe. With the euro and the single market of the EU several states with their own economies were transformed to an economy with competing locations. See: Euro Currency

Riester Pension

In addition there is the campaign with which the statutory pension system was poorly written and spoken about to open up new sources of income for insurance companies and investors. There was a campaign under Chancellor Schröder (SPD) according to which the demographic change would overwhelm the statutory pension system and now only private retirement provision would help. In fact the performance of statutory pension insurance has been systematically reduced among other things by fixing the contribution rate to a maximum of 20%. [1,p.69-75] For this purpose the messages were repeated, unanimously represented in talk shows and underpinned by experts. The experts who could be used for this are Bert Rürup, Bernd Raffelhüschen and Meinhard Miegel. [1,p.29-34] [1,p.34-36] [1,p.40-42] [1,p.53-54] It was also kept secret that the rise in labor productivity demonstrably beats the development of the population. [1,p.29-34]

Austria and Germany both have pay-as-you-go pension systems. So the part of the population of working age pays for people of retirement age. And after joining the pension the former working people are provided by the next generation. As far as demographic change is concerned the population pyramids of both countries are almost identical. [3] [4]

In Germany the contribution rate to the statutory pension insurance is 18.9 percent and the employee and employer each take on 9.45 percent. The standard retirement age for women and men is 62.7 years. And there are 35 pensioners for 100 depositors. Thus the share of income from pension insurance in the federal budget at 23.6 percent. After at least 45 years of contribution an average pension of 50% of the average earnings remains. That's just above the poverty line. [5,S.15] [5,S.16] [6,S.217] [6,S.266]

In Austria the contribution rate to the statutory pension insurance is 22.8 percent employees take over 10.25 and employers take over 12.55 percent. The standard retirement age for women and men is 62.7 and 60.2 years. On 100 depositors then come 30 pensioners. Thus the share of income from pension insurance in the federal budget at 22.7 percent. After at least 45 years of contribution, an average pension of 92 percent of average earnings remains. After min. 45 years of contribution makes Austria much more for people. [5,S.15] [5,S.16] [6,S.217] [6,S.266]

Today the German pension level is far behind in the list of the OECD while Austria occupies a leading position. The question therefore arises as to why Germany as the supposedly richest economy in Europe has a significantly lower pension level than small Austria. An essential part of the answer is the reduction of the future payout amount of the statutory pension insurance within the framework of the wage restraint agenda 2010.

Banks

Another case of manufacturing of consent is the reinterpretation and exploitation of the banking crisis from 2007. Troubled banks were supported or saved by the state with several billion Euros. The resulting increase in government debt was then reinterpreted as the government debt crisis. And under the guise of this supposed sovereign debt crisis austerity and privatization programs were then implemented. [1,p.75-78] [1,p.100-104]

On the one hand there would be the treatment of Greece by the Troika and the Media. The troika consists of the EU Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF). It was supposed to demand a cut of public spending in the member states in which it is sent to so that the member states receive the urgently needed emergency loans. The Troika operated in Ireland, Portugal, Cyprus, Spain and Greece. [1,p.128-129] [7] [8,en] [8,de]

However the troika consists of unelected bureaucrats who can not be held accountable for their actions. As a consequence massive savings programs (austerity programs) were prescribed for the states at the expense of the population. State expenditure both social benefits and direct expenditures are always part of a country's GDP. With the austerity programs (austerity programs) on the one hand the living standard of the population was lowered. On the other hand cuts in direct expenditures of the government meant for various companies their orders fell. Journalist Harald Schumann has filmed the very worthwhile documentary "The Trail of the Troika" about the effects of this catastrophe. [7] [8,en] [8,de]

[1] Albrecht Müller - Believe little, question everyone, think for yourself - How to see through manipulations - ISBN 978-3864892189
[2] NachDenkSeiten
https://www.nachdenkseiten.de/
[3] demographics Germany / Demographie Deutschland
https://de.wikipedia.org/wiki/Deutschland#Bevölkerung
[4] demographics Austria / Demographie Österreich
https://de.wikipedia.org/wiki/%C3%96sterreich#Bevölkerungsbewegung
[5] PENSION AGE IN GERMANY AND AUSTRIA: LEARNING FROM NEIGHBORS?
http://www.boeckler.de/pdf/p_wsi_report_27_2016.pdf
[6] Pensions at a Glance 2015 OECD and G20 indicators
http://www.oecd.org/berlin/publikationen/pensions-at-a-glance-2015.htm
[7] Euro crisis - the troika: power without control 2015-02-24
https://www.tagesspiegel.de/politik/eurokrise-die-troika-macht-ohne-kontrolle/11406286-all.html
[8, en] The Trail of the Troika (HD 720p) | A must-see to understand the situation in Greece
https://youtu.be/BLB3uu1IXM0
[8, de] Power Without Control - The Troika (ARTE, Harald Schumann)
https://youtu.be/Sw3gdliKYBM

Kommentare