The rise of the state: How Merz redesigned the welfare state

The rise of the state: How Merz redesigned the welfare state

In the political landscape of Europe and the United States, a profound change can be observed. Liberalism, which played a dominant role in the 80s and 90s, is becoming increasingly important. At the same time, the strong state gains influence, such as Focus reported. This development is largely promoted by conservative politicians, especially Friedrich Merz. The world financial crisis and the Covid 19 pandemic have further weakened economic liberalism and paved the way for a more active role in the state in social, ecological and military matters.

neoliberalism has changed its position; Instead of promoting growth through free trade, it is now increasingly financing itself through global financial markets. The return of statehood is clearly noticeable under the current tours in Washington, Brussels and Berlin. In the United States, inflation reduction act was introduced, a program that promotes state settlement programs, while Germany has decided on a credit program for infrastructure projects weighing 500 billion.

welfare state and defense spending

A striking trend is the increasing public debt in both regions. The public debt in the euro area has increased by 30 percent since 2000, and even more than doubled in the United States. Another aspect is the increase in defense spending due to the Ukraine secretary. In Germany, 400 billion euros are estimated for armaments investments.

In addition, climate change is perceived as a serious threat, which leads to numerous international contracts and national laws. Programs such as the Green Deal of the EU show how strongly the state intervenes in the economy, and it turns out that welfare states grow faster than private business. This leads to increasing consumer expenses.

political ideologies in change

The changes in the political landscapes are closely associated with the different ideologies that lead companies. Political ideologies such as liberalism, conservatism and socialism not only shape everyday life, but also offer answers to the distribution of power and resources as well as individual freedoms. The politician guide describes that liberalism is based on principles such as freedom and market economy, while consumerness emphasizes tradition and order.