Katherina Reiche has sparked a debate that extends far beyond traditional economic issues. For the first time, she openly stated that the promise of prosperity to the next generation can no longer be kept. This statement carries significant weight because it marks a historic turning point. At the same time, Reiche is calling for longer working hours, even though economic growth, competitiveness, energy prices, and tax relief are currently sending very different signals. This is precisely the crux of the criticism, because growth does not automatically result from more work.
Katherina Reiche and the Limits of the Working Time Argument
Katherina Reiche links her warning about declining prosperity with the demand that Germans, overall, must work more. This approach initially seems pragmatic, but it falls short. Economic growth does not arise from additional hours, but from productive demand. If orders are lacking, longer working hours remain ineffective, while competitiveness continues to suffer.
Photo by John MACDOUGALL / AFP
Experience from past economic cycles shows that companies only increase labor when sales markets are functioning. Without stable conditions, more work does not lead to growth, but rather increases the pressure on employees. Katherina Reiche thus overlooks the fact that work is not an end in itself, but rather the result of functioning markets.
Economic growth needs demand, not appeals
After years of stagnation, many companies lack planning certainty. Exports are weak, investments are lacking, and competitiveness is declining. Under these conditions, economic growth cannot be achieved solely through longer working hours. Growth requires demand, because only sold products create added value.
The focus on working hours shifts responsibility to employees, even though structural problems remain unresolved. While Katherina Reiche acknowledges the seriousness of the situation, her conclusions narrow the debate. Sustainable growth does not begin at the desk, but with the costs and productivity of companies.
Energy prices as a key location factor
Energy prices are a crucial factor for competitiveness. In Germany, they are significantly higher than the international average. This burdens both industry and small and medium-sized enterprises (SMEs). High costs discourage investment and weaken economic growth in the long term.
Longer working hours cannot compensate for these disadvantages. Even highly skilled workers lose their effectiveness when production costs spiral out of control. Therefore, lowering energy prices remains the most important lever for making companies competitive again and enabling growth.
Debureaucratization and permits as growth drivers
In addition to energy prices, bureaucracy stifles economic dynamism. Lengthy permitting processes, complex regulations, and increasing documentation requirements slow down investment. Debureaucratization would immediately unleash productivity and strengthen competitiveness.
Accelerated procedures create planning certainty and reduce costs. This is precisely where real economic growth arises, because companies can invest more quickly and implement innovations. Katherina Reiche, on the other hand, focuses on labor as a factor, even though the administrative obstacles weigh considerably more heavily.
Tax Relief Boosts Consumption and Growth
Another key lever is tax relief for employees. More net income increases purchasing power and strengthens the domestic economy. Rising consumptionvvv leads to more orders, which promotes investment and employment. This mechanism has a direct and lasting effect.
In contrast, the effect of longer working hours remains uncertain. Without demand, additional work is wasted. Tax relief, on the other hand, strengthens confidence and stabilizes economic growth from within.
Political Ambition and Economic Reality
Jens Spahn also declares economic growth to be the central benchmark for political decisions. This ambition is correct, but it requires a more comprehensive strategy. Competitiveness, energy prices, deregulation, and tax relief determine growth, not moral appeals to working hours.
Katherina Reiche’s statement on the crumbling promise of prosperity has provided an important impetus. Precisely for this reason, solutions that address the root causes are needed now. More work alone will not lead Germany out of the crisis. Only better framework conditions will make work the engine of growth again. (KOB)v