Free Enterprise and State Control

Good intentions do not always have good outcomes

Are government control measures sensible and efficient? Or are there other means by which the same goals could be achieved? These two questions form the core of this year’s annual yearbook of the Advisory Board. Professors Clemens Fuest, Udo Di Fabio and Gabriel Felbermayr each approach the topic from a different angle and with a different focus.

The economist Fuest examines the history of neo-interventionism and the associated dangers for economic prosperity. Former constitutional judge Di Fabio sheds light on at the constitutional aspect of the issue. And in his remarks, economist Felbermayer focusses on the example of the German Supply Chain Due Diligence Act.

In doing so, he comes to a clearly negative assessment. The desired improvement in the human rights situation in developing countries, Felbermayr emphasises, is “not only slowed down by state control, but is at worst (at least partially) reversed”.

If crisis situations are excluded, the efficiency of state intervention is doubtful, according to the researchers. They see companies being overburdened and warn of considerable welfare losses.

However, the experts not only call for more restraint on the part of the state and advocate for more personal responsibility and freedom, they also point to market-based alternatives.

The Advisory Board of the Foundation for Family Businesses consists of six members who support the work of the foundation. In different combinations, they write about current topics that concern family businesses for the annual yearbook.