The government's obligation to intervene principle
When social harmony is threatened, the government has a duty to intervene in the framework of supply, demand and price.In the communist planned economy of the Eastern bloc, the economy was completely controlled by the state, which constricted creativity and economic development to such an extent that the system collapsed in 1989.
In the same decade that Eastern Bloc communism came to an end, an exactly opposite theory began: neoliberalism. The state as spectator, how the "perfect market" solves all problems. The state must not intervene, the state must fully trust the free forces of the economy. With the increasing crises in the USA and the EU, we see this theory landing on the rubbish heap of history.
For many the thesis may be surprising that this Neoliberalism hampers creativity and economic development just as much as Eastern Bloc communism. But I am sure that a scientific analysis of the decline will prove exactly this thesis.
Rising unemployment, work at existing conditions is increasingly difficult to sell. In the EU election program 2014: Reduction of the employer's social security contribution by 180 EUR per month.
Large sections of the population have no financial room for manoeuvre for important investments. In the EU election programme 2014: Reduction of employee social security contributions by EUR 180 per month.
Economic blockade, almost no investment in the real economy. In the EU election program 2014: The two measures mentioned above together with their counter-financing with 200 EUR per ton CO2 shift the cost optimum. The efforts to reach the new cost optimum cause enormous investments.
Large sections of the population are squeezed to the last between stagnating wages and rising housing costs. In the EU election program 2014: Dedication of solar building land to disrupt the balance between supply and demand by a very cheap and abundant supply of new housing to the detriment of real estate speculators and to the detriment of the basic need to live.