AfD's Economic Program Would Cost Germany €181 Billion Annually, EU Exit an Additional €690 Billion

AfD's Economic Program Would Cost Germany €181 Billion Annually, EU Exit an Additional €690 Billion

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AfD's Economic Program Would Cost Germany €181 Billion Annually, EU Exit an Additional €690 Billion

A new study by the Institut der Deutschen Wirtschaft (IW) reveals that the AfD's proposed policies would lead to €181 billion in lost government revenue and potentially cost Germany €690 billion and 2.5 million jobs if the country were to leave the EU. The AfD plans to abolish several taxes, reduce others, and significantly raise pensions, while strictly adhering to the debt brake.

German
Germany
PoliticsEconomyEuAfdEconomic PolicyGerman EconomyBrexitElection Analysis
Institut Der Deutschen Wirtschaft (Iw)Alternative Für Deutschland (Afd)
Philipp Vetter
How would the AfD's proposed policies affect different income groups in Germany?
The AfD's plan combines massive tax cuts with increased pension spending, creating a substantial budget deficit. This is further exacerbated by the party's aim to maintain the debt brake, leaving no room to compensate for revenue shortfalls. The lack of counter-financing across all AfD proposals represents a key shortcoming.
What are the immediate economic consequences of implementing the AfD's proposed policies?
The AfD's proposed policies would result in €181 billion in reduced government revenue, equivalent to nearly 20% of total tax revenue. This is primarily due to planned abolitions of various taxes and significant reductions in others, with no offsetting measures.
What are the long-term implications of the AfD's economic platform, considering both domestic and international factors?
Germany's potential exit from the EU, as advocated by the AfD, is projected to cost the German economy €690 billion over five years, with a loss of 2.5 million jobs. This would be comparable in economic damage to the combined impact of the Covid-19 pandemic and the energy crisis. The AfD's policies are also already hindering recruitment of foreign skilled workers.

Cognitive Concepts

4/5

Framing Bias

The framing emphasizes the negative economic consequences of the AfD's program, using strong words like "enormous," "gravierende Folgen" (grave consequences), and highlighting potential losses in billions of Euros. This framing might predispose readers to view the AfD's proposals unfavorably. The headline, if any, would further influence this perception. The study's findings are presented prominently, potentially overshadowing any potential benefits of the AfD's plan that might exist.

3/5

Language Bias

The article uses strong, negative language to describe the AfD's economic plan, such as "drastische Steuersenkungen" (drastic tax cuts), "erhebliches Problem" (significant problem), and "geschröpften Haushalt" (depleted budget). These terms carry negative connotations. More neutral alternatives could include 'substantial tax reductions,' 'significant challenge,' and 'reduced budget.'

3/5

Bias by Omission

The analysis focuses heavily on the economic consequences of the AfD's program, potentially omitting other aspects of their platform that could influence voters. The long-term societal impacts beyond economics are not explored. There is no mention of the AfD's stances on social issues or foreign policy, which could be relevant to a comprehensive evaluation.

3/5

False Dichotomy

The article presents a false dichotomy by primarily framing the AfD's economic proposals as either drastically beneficial for some or disastrous for the country as a whole. It doesn't sufficiently explore the potential for nuanced outcomes or alternative perspectives on the economic impact.

Sustainable Development Goals

Reduced Inequality Negative
Direct Relevance

The AfD's proposed tax cuts disproportionately benefit high-income families, exacerbating income inequality. The study shows that families with higher incomes would receive significantly larger tax cuts than lower-income families. This widens the gap between rich and poor, undermining efforts towards a more equitable distribution of wealth.