Toll house politics, as described by BÖRSE ONLINE's editor-in-chief, erode our wealth and wellbeing.
Germany's Economic Decline Over 17 Years: Insights from Frank Poepsel
In his annual address at the Fondskongress in Mannheim, BÖRSE ONLINE Editor-in-Chief Frank Poepsel highlighted the disparity between the US and EU economies, emphasizing the doubling of America's GDP and the tripling of its market value compared to the EU since 2007.
"In 2007, the economic output in the USA and Europe was roughly equal," Poepsel stated. "Fast forward seventeen years later, the GDP of the USA is now roughly double that of the EU. Likewise, the market value of US companies compared to their European counterparts has increased approximately threefold."
Political Circus: A Threat to Prosperity
Poepsel also addressed the growing concern that the political landscape in Germany is exacerbating the economic downturn. He pointed out that the notion of the informed consumer making independent choices has become outdated.
"Not just the Greens but also the EU Commission acknowledges this," said Poepsel. "Everyone calls for more courage in regulation. And Germany, in particular, has demonstrated its willingness to regulate."
Since 2010, around 1000 new federal laws have been introduced, but critics argue that numerous laws may be unnecessarily restrictive, burdening citizens and corporations.
For further insights on these issues and a comprehensive list of questionable laws, readers are invited to watch the full speech by Frank Poepsel.
The Impact on DAX Stocks and the Warning from Professor Hans-Werner Sinn
It's worth noting that leading German economist Professor Hans-Werner Sinn also warns about excessive regulations and their detrimental effects on economic prosperity.
Many DAX stocks, for instance, have managed to generate profits only due to government subsidies, according to some critics. As for the way out, it remains to be seen how Germany will navigate the complexities of maintaining its high standard of living while balancing the need for regulation and economic growth.
"Frank Poepsel, in his speech, also discussed the impact of Germany's political landscape on its economy, stating that excessive regulations may be burdening citizens and corporations. He highlighted the growing concern that these regulations could exacerbate the economic downturn."
"Professor Hans-Werner Sinn, a renowned German economist, shares similar concerns about excessive regulations, warning that they could negatively impact economic prosperity. For example, some critics argue that many DAX stocks have managed to generate profits only due to government subsidies."
