The Voodoo Economics of German Industry Subsidies - Author: Jude S. Ngu'Ewodo
The Voodoo Economics of German Industry Subsidies
Let’s start with a couple of charts, because if you’re going to untangle the madness of German energy policy, you need a visual aid. The first and second chart show where some incompetent German politicians Habeck, Scholz, Söder, und Merz are planning to funnel billions of taxpayers' euros after the February elections—sad!—not into wind farms or solar panels, but straight into the bottomless pit of electricity subsidies for industry. The third chart takes a leap of imagination: what if, instead of subsidizing today’s inefficiencies, that money was spent building renewable energy capacity? And what if that capacity drove down electricity prices for everyone? Spoiler alert: it’s not a fantasy—it’s a missed opportunity.
This isn’t just about bad policy. It’s about a failure of imagination, a betrayal of basic economics, and a nation forgetting what made it an industrial powerhouse in the first place. The German government is handing out subsidies like candy at Halloween, and the industries gobbling them up are acting like they deserve every last bite.
Here’s the kicker: these subsidies don’t solve the problem. They are the problem.
The Supply-and-Demand Blindspot
Every economics student learns the first rule of markets: supply and demand determine price. High prices signal scarcity, which incentivizes new supply or reduced demand. It’s a beautifully simple system—unless, of course, you’re a German politician or industry lobbyist.
The subsidy plan goes something like this: electricity prices are too high for industries like chemicals and manufacturing. Let’s use taxpayer money to lower their costs. What happens next? Industries use more electricity because it’s cheaper for them, demand rises, and supply stays the same. The result? Higher prices for everyone else.
It’s like giving cheap gas to SUV drivers during an oil crisis and wondering why the rest of us are paying more at the pump. Subsidies distort the market, rewarding inefficiency and punishing the people playing by the rules. The industries benefitting most aren’t the ones innovating or conserving—they’re the electricity guzzlers with no incentive to change.
Sunk Costs: Food Eaten Today, Gone Tomorrow
Subsidies are the financial equivalent of burning your paycheck to stay warm. They’re an expense with no future. Once the money’s gone, it’s gone. It hasn’t built anything, improved anything, or created value.
Germany is spending billions to subsidize industrial electricity. That money could have gone into solar panels, wind farms, or advanced grid systems—things that last, things that lower costs for decades. Instead, it’s going toward lowering this month’s electricity bill for industries that should know better.
The charts don’t lie. Billions spent on subsidies buy nothing but temporary relief. Billions spent on renewables, on the other hand, buy energy independence, lower prices, and a competitive edge. Germany didn’t get rich by throwing money down the drain. Why start now?
Lazy Giants and Their Lack of Vision
Across the Atlantic, American tech giants like Facebook and Google are solving their energy problems in-house. Faced with skyrocketing electricity demand from data centers and AI operations, they’re building their own renewable energy capacity. Solar farms, wind turbines, battery storage—you name it, they’re doing it.
And in Germany? The so-called “electricity vampire” companies—chemicals, manufacturing, heavy industry—are taking a different approach. They’re not planning, building, or innovating. They’re lobbying.
Instead of rolling up their sleeves, these companies are pointing fingers, blaming the government for high prices while demanding subsidies. It’s a strategy born of laziness and entitlement. Worse, it’s a failure of leadership. These companies have the resources and expertise to lead Germany’s energy transition, but they’d rather sit back and whine.
The contrast is striking. While American companies invest in the future, German industry clings to the past. They act like spoiled children, expecting the government to fix their problems instead of fixing them themselves. And Berlin, for reasons that defy logic, seems all too willing to play along.
Chasing the U.S. Energy Mirage
One argument you’ll hear from subsidy proponents is that Germany needs to match U.S. electricity prices to stay competitive. In America, some industries pay as little as $0.02 per kWh. How can Germany compete with that?
Here’s the thing: it can’t. And it shouldn’t try.
The U.S. has cheap natural gas, vast renewable resources, and infrastructure built for low-cost energy production. Germany doesn’t. Trying to compete on price with the energy-rich U.S. is like trying to beat Usain Bolt in a footrace—it’s not happening.
What Germany does have is world-class technology, skilled workers, and an innovation-driven economy. The way to stay competitive isn’t by chasing rock-bottom prices; it’s by doubling down on what makes Germany unique. Invest in green tech, in efficiency, in high-value industries that don’t depend on cheap energy. That’s how you compete in the 21st century.
A Lesson in Missed Opportunities
Let’s go back to those charts. The billions spent on subsidies could have built enough renewable energy to power entire regions. That new capacity would have lowered prices for everyone, making subsidies unnecessary. But instead of investing in the future, Germany is throwing money at the present.
This isn’t just bad economics; it’s bad leadership. Germany once led the world in the energy transition. Now it’s falling behind, propping up industries that refuse to adapt instead of building a system that works for everyone.
Conclusion: The Real Cost of Subsidies
Subsidies are easy. Investments are hard. But only one of them builds a better future.
Germany’s industrial electricity subsidies are a textbook example of voodoo economics. They distort markets, waste taxpayer money, and delay the real work of fixing the energy system. Worse, they send the wrong message to industry: don’t innovate, don’t adapt—just wait for a handout.
The charts accompanying this article tell a simple story: subsidies buy nothing but higher bills tomorrow. Investments in renewables buy lower costs, cleaner energy, and a competitive edge.
Germany has a choice to make. It can keep subsidizing failure, or it can start investing in success. And for the sake of its future, it had better choose wisely.
#ClimateCrisisUnmasked #EnergyPolicy #Germany #EnergyTransition #IndustrialSubsidies #TaxpayerMoney #InvestInTheFuture #SustainableEnergy #CleanEnergy #InnovationOverSubsidies #Nguewodo
Let’s start with a couple of charts, because if you’re going to untangle the madness of German energy policy, you need a visual aid. The first and second chart show where some incompetent German politicians Habeck, Scholz, Söder, und Merz are planning to funnel billions of taxpayers' euros after the February elections—sad!—not into wind farms or solar panels, but straight into the bottomless pit of electricity subsidies for industry. The third chart takes a leap of imagination: what if, instead of subsidizing today’s inefficiencies, that money was spent building renewable energy capacity? And what if that capacity drove down electricity prices for everyone? Spoiler alert: it’s not a fantasy—it’s a missed opportunity.
This isn’t just about bad policy. It’s about a failure of imagination, a betrayal of basic economics, and a nation forgetting what made it an industrial powerhouse in the first place. The German government is handing out subsidies like candy at Halloween, and the industries gobbling them up are acting like they deserve every last bite.
Here’s the kicker: these subsidies don’t solve the problem. They are the problem.
The Supply-and-Demand Blindspot
Every economics student learns the first rule of markets: supply and demand determine price. High prices signal scarcity, which incentivizes new supply or reduced demand. It’s a beautifully simple system—unless, of course, you’re a German politician or industry lobbyist.
The subsidy plan goes something like this: electricity prices are too high for industries like chemicals and manufacturing. Let’s use taxpayer money to lower their costs. What happens next? Industries use more electricity because it’s cheaper for them, demand rises, and supply stays the same. The result? Higher prices for everyone else.
It’s like giving cheap gas to SUV drivers during an oil crisis and wondering why the rest of us are paying more at the pump. Subsidies distort the market, rewarding inefficiency and punishing the people playing by the rules. The industries benefitting most aren’t the ones innovating or conserving—they’re the electricity guzzlers with no incentive to change.
Sunk Costs: Food Eaten Today, Gone Tomorrow
Subsidies are the financial equivalent of burning your paycheck to stay warm. They’re an expense with no future. Once the money’s gone, it’s gone. It hasn’t built anything, improved anything, or created value.
Germany is spending billions to subsidize industrial electricity. That money could have gone into solar panels, wind farms, or advanced grid systems—things that last, things that lower costs for decades. Instead, it’s going toward lowering this month’s electricity bill for industries that should know better.
The charts don’t lie. Billions spent on subsidies buy nothing but temporary relief. Billions spent on renewables, on the other hand, buy energy independence, lower prices, and a competitive edge. Germany didn’t get rich by throwing money down the drain. Why start now?
Lazy Giants and Their Lack of Vision
Across the Atlantic, American tech giants like Facebook and Google are solving their energy problems in-house. Faced with skyrocketing electricity demand from data centers and AI operations, they’re building their own renewable energy capacity. Solar farms, wind turbines, battery storage—you name it, they’re doing it.
And in Germany? The so-called “electricity vampire” companies—chemicals, manufacturing, heavy industry—are taking a different approach. They’re not planning, building, or innovating. They’re lobbying.
Instead of rolling up their sleeves, these companies are pointing fingers, blaming the government for high prices while demanding subsidies. It’s a strategy born of laziness and entitlement. Worse, it’s a failure of leadership. These companies have the resources and expertise to lead Germany’s energy transition, but they’d rather sit back and whine.
The contrast is striking. While American companies invest in the future, German industry clings to the past. They act like spoiled children, expecting the government to fix their problems instead of fixing them themselves. And Berlin, for reasons that defy logic, seems all too willing to play along.
Chasing the U.S. Energy Mirage
One argument you’ll hear from subsidy proponents is that Germany needs to match U.S. electricity prices to stay competitive. In America, some industries pay as little as $0.02 per kWh. How can Germany compete with that?
Here’s the thing: it can’t. And it shouldn’t try.
The U.S. has cheap natural gas, vast renewable resources, and infrastructure built for low-cost energy production. Germany doesn’t. Trying to compete on price with the energy-rich U.S. is like trying to beat Usain Bolt in a footrace—it’s not happening.
What Germany does have is world-class technology, skilled workers, and an innovation-driven economy. The way to stay competitive isn’t by chasing rock-bottom prices; it’s by doubling down on what makes Germany unique. Invest in green tech, in efficiency, in high-value industries that don’t depend on cheap energy. That’s how you compete in the 21st century.
A Lesson in Missed Opportunities
Let’s go back to those charts. The billions spent on subsidies could have built enough renewable energy to power entire regions. That new capacity would have lowered prices for everyone, making subsidies unnecessary. But instead of investing in the future, Germany is throwing money at the present.
This isn’t just bad economics; it’s bad leadership. Germany once led the world in the energy transition. Now it’s falling behind, propping up industries that refuse to adapt instead of building a system that works for everyone.
Conclusion: The Real Cost of Subsidies
Subsidies are easy. Investments are hard. But only one of them builds a better future.
Germany’s industrial electricity subsidies are a textbook example of voodoo economics. They distort markets, waste taxpayer money, and delay the real work of fixing the energy system. Worse, they send the wrong message to industry: don’t innovate, don’t adapt—just wait for a handout.
The charts accompanying this article tell a simple story: subsidies buy nothing but higher bills tomorrow. Investments in renewables buy lower costs, cleaner energy, and a competitive edge.
Germany has a choice to make. It can keep subsidizing failure, or it can start investing in success. And for the sake of its future, it had better choose wisely.
#ClimateCrisisUnmasked #EnergyPolicy #Germany #EnergyTransition #IndustrialSubsidies #TaxpayerMoney #InvestInTheFuture #SustainableEnergy #CleanEnergy #InnovationOverSubsidies #Nguewodo
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