The linking of economic deals with geopolitical interests in international politics is a cause for concern, says the Director of the Global Ethic Institute, Prof. Dr Nils Goldschmidt. He warns that this style of politics could become a trend, as it destabilises economic and social relations in the long term and can thus promote a downward economic spiral. Even an economy like that of the United States is not immune to this.
The flailing political style of US President Donald Trump is not only causing massive political turbulence worldwide, but is also increasingly causing economic upheaval – not only outside the US, but also within it. The falling share prices, the opaque, economically devastating trade policy and the threat of economic decline are taking root in the minds of Americans, which can lead to a downward spiral.
“It is not only the general uncertainty that is increasingly paralysing politics and the economy in the USA, but also the erosion of important institutions and the lack of respectful cooperation that are making it difficult to implement a sustainably successful economic policy. Reliability and solution-orientation also contribute to economic stability. A policy based on constructive dialogue and compromise pays off for economies,” says Goldschmidt.
Return to the ability to compromise as an opportunity for stability
However, according to Goldschmidt, who is also a member of the German Ethics Council, a positive trend is emerging in Germany: ‘It is cautiously optimistic that agreements are possible again,’ emphasises Goldschmidt. ‘This return to a policy of balancing interests can become a decisive factor for economic and social stability in Germany and Europe.’
Social market economy as a joint project
Goldschmidt sees the ability to compromise as a key success factor of the social market economy. In doing so, he is building on the ideas of Hans Küng, who saw it as a peace project that combines economic efficiency with social responsibility. In this tradition, Institute Director Goldschmidt therefore advocates an economic policy that regards dialogue and reliability as the cornerstones of international cooperation. The basis for economic decisions must not be deals at any price, but genuine understanding and responsible behaviour.
Photo: Philipp Sigle / Global Ethic Institute
