Why supply policy prevails in a shortage economy 2024-03-26 12:11:34

JNow here we go! The federal government is giving the railways almost 15 billion euros this year so that they can finally improve their rail network. Large construction projects are planned, for example between Frankfurt and Mannheim, between Hamburg and Berlin or between Kassel and Göttingen. The construction industry is happy about that, right? Oh well. The president of the construction association, Peter Hübner, is a bit skeptical, especially with regard to the individual construction site between Frankfurt and Mannheim. “Implementing an order volume of 600 million euros in five months is hardly or not at all feasible,” he told the FAZ in January, “even if a thousand men worked day and night.”

Patrick Bernau

Editor responsible for economics and “value” at the Frankfurter Allgemeine Sonntagszeitung.

Alexander Wulfers

Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.

And what about other major investment projects in Germany, for example the new power lines? “That makes me very anxious,” says Hübner. “As you know, a lot of the cables have to be laid underground. For this you need so-called flushing drills. But they are in such demand that you have to calculate a delivery time of at least two years.” That’s how it is in Germany now: there’s often no shortage of money.

#supply #policy #prevails #shortage #economy

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