Tom Krebs' "Kapital und Krise" Proposes "Planned Market Economy" for Germany

In his new book "Kapital und Krise," economist Tom Krebs proposes a radical alternative for Germany: a "geplante Marktwirtschaft," or planned market economy. The book argues that Germany lacks a coherent plan for good industrial policy. Industrial policy was long viewed with suspicion in Germany, but that has changed. Peter Altmaier's "Nationale Industriestrategie 2030" in 2019 marked a shift; since the pandemic, energy crisis, and "Zeitenwende," active industrial policy has returned to the repertoire. The state subsidizes chip factories, promotes hydrogen, intervenes in energy prices, plans power grids, and guarantees defense contracts. Yet all this does not amount to a plan. Companies decide what and where to invest. The state then tries to influence these decisions with subsidies, loans, guarantees, or regulation. Control over investments remains private. The article notes that politics must come first. The full text is available in the current issue.