The public sector in Germany continues to grow and, with around 5.5 million employees, represents one of the largest employment sectors. In the past year alone, approximately 205,000 new positions were added. At the same time, public employees perform essential functions in the areas of security and the judiciary, which are indispensable for the functioning of the state.
Nevertheless, this growth raises questions, particularly against the backdrop of advancing digitalization and the use of artificial intelligence, which could handle many repetitive tasks. Within the system, the public sector is in part viewed as a buffer for gradually rising unemployment. This leads to the creation of roles considered low in productivity and driven by political pressure to act.
The expansion of bureaucracy is accompanied by a steady increase in budgets. Administrative structures develop their own internal dynamics and strive to preserve and expand their responsibilities. At the same time, this trend is linked to political objectives, especially in the context of ecological and social programs, creating a combination of ideological orientation and administrative expansion.
In this context, the introduction of a new corporate form, the so-called “Society with Bound Capital,” is under discussion. This legal structure is designed to prevent profit distributions and to redefine owners as more actively involved participants. As a result, fundamental principles of the market economy are altered, particularly with regard to capital allocation and property rights.
The new structure is primarily aimed at organizations operating within the sphere of state-funded projects. Its purpose is to channel capital into structures that are more dependent on government support. This could lead to the expansion of a system based on subsidies, grants, and politically influenced market mechanisms.
For businesses, this may result in constraints on investment, innovation, and the ability to adapt to economic changes. The proposed legal form shows parallels to historical constructs such as the fideicommissum, in which assets are tied up over the long term and removed from free disposal.
Source: Zerohedge