GIB formula

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As GIB formula called Heinz-J. Bontrup acceptance of supply-side economics that G ewinne to I nvestment and thus more B MPLOYMENT lead.

Critics of a supply-oriented economic policy complain that the thesis does not take into account that investments only take place if the entrepreneur can expect higher sales of his goods or higher profits as a result. However, if profits are achieved by lowering wages, which leads to a weakening of the consumer goods demand, no increasing demand for goods can be expected either. At least not in the market where the wage cuts or layoffs are being carried out. Investments in rationalization also did not lead to an increase in employment.

In Germany the thesis was de facto recognized by the government through the Hartz reforms .

Opponents of the GIB formula propose to counter this with the ENA formula . This hypothesis states that increasing E inkommen today to a growing N achfrage tomorrow and more A rbeitsplätzen tomorrow lead. Furthermore, from the failure of the GIB formula, the demand for an increase in the top tax rate and the introduction of a wealth tax is derived.

literature

  • Heinz-J. Bontrup: Labor, Capital and State. A plea for a democratic economy. PapyRossa-Verlag, Cologne 2005, ISBN 3-89438-326-7 (for the GIB formula p. 38ff.)
  • Jörg Hinze & Kai Kirchesch: The connection between profits and investments is loosened. In: Wirtschaftsdienst , Vol. 79 (1999), Issue 11, pp. 677-682, ISSN  0043-6275 ( PDF; 474 kB )

Footnotes

  1. ↑ memo.uni-bremen.de (PDF; 84 kB)
  2. ↑ Robert Straßheim: How do we find the 22nd century? Marburg, February 9, 2008, p. 52 scribd.com ( Memento of the original from March 7, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , accessed December 14, 2008 @1@ 2Template: Webachiv / IABot / www.scribd.com
  3. ↑ cf. Hans-Werner Sinn : The Heart of Hartz. In: Ifo Viewpoint No. 37, Munich, Aug. 19, 2002. Quoted in: Klaus-Uwe Gerhardt : Hartz plus - wage subsidies and minimum income in the low-wage sector. www.mindesteinkommen.de, 2007 (accessed on December 14, 2008)
  4. ↑ Alternative Economic Policy Working Group : Memorandum 2007. Cologne 2007, p. 257; Quoted from: Robert Straßheim: How do we find the 22nd century? Marburg, February 9, 2008, p. 130, scribd.com ( Memento of the original from March 7, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , accessed December 14, 2008 @1@ 2Template: Webachiv / IABot / www.scribd.com
  5. ↑ Catholic workers' movement Diözesanverband München-Freising e. V .: Bavarian Finance Minister pleads for thinking about the Tobin Tax ( memento of the original from March 5, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 357 kB)  @1@ 2Template: Webachiv / IABot / www.kabdvmuenchen.de