Germany's Conversion To Planned Economy, War With Russia As Driver

Moritz Schularick, president of the Kiel Institute, has expressed support for a war economy in Germany. He advocates for active industrial policy and increased arms production to boost jobs and reduce dependence on the US. Schularick believes Defense Minister Pistorius should work with European partners to supplant the US in defense capabilities. The author criticizes the militaristic vocabulary being used, highlighting the shift toward central planning in economic policy. Schularick laments the slow pace of arms production expansion and calls for a top-level arms coordinator. The shift to a war economy would repurpose civilian industries, potentially raising costs and creating subsidy-dependent sectors. Schularick praises the "rediscovered" work ethic, focusing on war-related jobs and neglecting broader economic needs. The author questions the feasibility of converting production lines and the knowledge transfer needed. The article argues that militarization is likely to fail due to resource mismanagement and other factors. The author suggests economists' vanity and potential personal gain motivate this shift.