Deindustrialization due to complete economic policy failure: Germany is facing a wave of bankruptcies

The traffic light coalition and the irresponsible economic policy of Green Economics Minister Robert Habach are slowly but surely leaving a trail of devastation in Germany. Even traditional companies that survived both world wars are now headed toward bankruptcy. The federal government is demonstrating a complete economic policy failure.

If you read the current headlines in the business columns of newspapers, it becomes clear: Germany is not performing well as a business location. The number of bankruptcies increased by 22 percent in October alone – a worrying upward trend in corporate bankruptcies that has been running since June with double-digit percentage increases compared to the corresponding months last year. If you consider that most applications were submitted about three months ago, it becomes clear that this is a long-term trend. A trend that affects, for example, the filing for bankruptcy of a traditional company with a 250-year history: Hasenclever & Son Ironworks, which supplies car manufacturers such as Audi, BMW, Daimler, Ford and Porsche. Fell.

But even “green” companies like Sono Motors are not immune to financial collapse. After the company failed in the Scion electric car and then focused on the B2B solar business, it also filed for bankruptcy “due to insolvency and excessive indebtedness”. But bankruptcy itself represents only a part of the miserable economic picture that currently characterizes the Federal Republic. Because other companies (like tire maker Conti) are already facing mass layoffs. Things are no better at chemical giant Bayer, which is planning massive job cuts as part of a major “restructuring process.” Jobs at Baden-Württemberg mechanical engineering company Homag will also be cut – 600 in fact. The reason: There are unexpectedly weak order numbers for the coming year.

With energy sanctions against Russia and a completely derailed energy transition, Germany’s political leadership has shot itself not just on one knee but on both knees. Energy is the lubricant of a functioning economy and without sufficient (affordable) energy, “piston seizure” occurs. The artificial increase in prices and energy shortages are becoming increasingly noticeable and are already causing structural damage to the German economic engine, which will no longer be so easy to repair. Bankrupt companies leave gaps in the supply chain, as do companies that migrate abroad. Not to mention job losses and declines in tax revenues and social security contributions.

This kind of economic self-destruction of an entire industrialized country in the name of climate religion, which is actually deliberately carried out by politicians, is perhaps unprecedented. Despite all its efforts to decarbonize the economy, even the Biden administration in the United States, which also leans left-green, does not dare to artificially raise energy prices to such an extent that the industry Entire areas get ruined rapidly. , On the contrary, despite this policy, the American location is becoming interesting for more and more European companies – because the situation on the “old continent” is much worse.