German FAZ: Intervention spiral 005786

Politicians lose large parts of the population if they want to pursue climate policy at the price of undermining the material foundations of this country. Polls show that the Greens and the activists close to them still have to learn that.

An evergreen of order-economic thinking is the warning against intervention spirals. They arise when interventionist policies lead to (usually unsurprising) problems that prompt politicians to respond with further interventions. They usually cause additional grief.

A current example are the misguided attempts by the Ministry of Economic Affairs, which is in the midst of personnel policy calamities, to advance the green transformation. This goes hand in hand with a growing demand for electricity, to which the government reacted, primarily for ideological reasons, by shutting down nuclear power plants that could have run for a few more years. At the same time, the expansion of renewable energies is not progressing fast enough.

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