#5/25 Retreat of the State, Hour of Giving?

Dear Readers,

A landslide begins almost imperceptibly. Then more and more things start to move. Until it crashes.

The political structure is shifting. And we are probably still at the beginning.

Around us, and particularly in the US, the trend points toward isolationism, less funding for development, and the consensus on climate change is gone. And looking ahead to the federal election, one thing is clear: there will not be nearly enough public funds to finance the solutions, wealth taxes or not.

Are we witnessing a retreat of the state in its capacity to shape society?

For me, that would require a major rethink. But perhaps it is also an opportunity: for a new honesty. Because no matter how things continue politically - without more voluntary commitment from each and every individual, without more entrepreneurship, without more civil society, it simply won't work.

Has the hour for giving arrived?

A number that sticks in the mind: -7%

Trust is the capital of politics. Measured by this, the state in Germany is hardly in a position anymore to shape major developments - let alone take its population along with it. The annual Edelman Trust Barometer records the greatest loss of trust in the government in our country; even Colombians trust their state more. And many authoritarian-governed states are far ahead.

How can societies rebuild trust? Research suggests: lived social responsibility, economic security, as well as transparent, evidence-based action. Our open societies must change. But not towards authoritarianism. Instead, they must play to their own strength: trust in the diversity and resources of the citizens themselves. That is not corporatism or neoliberalism, but a new togetherness of state and society.

A person who inspires me

Alex von Frankenberg, Jan-Hendrik Goldbeck, Miki Yokoyama, Gerald Schömbs, Frank Sippel, Kai Viehof

In the latest episodes of our podcast “Das Neue Geben”, six guests showed in very tangible ways how to achieve great things for society through private and entrepreneurial energy. Highly recommended listening!

(By the way, after my focus on women and giving, it is rather coincidental that men happen to dominate here right now)

• Alex von Frankenberg on wealth building, Bitcoin, and how we keep profits in Germany

• Jan-Hendrik Goldbeck and Miki Yokoyama on impact investing and Germany as a business location

• Gerald Schömbs on lifestyle PR and communication for good ideas

• Frank Sippel on sustainable building without excess returns

• Kai Viehof on inheritance and commitment to democracy

An idea to ponder online: Private money in politics: Yes, no, or maybe?

What does a startup (founder) say about current politics? I answered this question for ZDF Mittagsmagazin, which turned it into a three-minute segment in the "MiMa-Menschen" series.

On my social media channels, I am reading more public voting recommendations than ever before. With my startup, the foundation platform bcause, we naturally pursue a social goal: mobilizing private contributions to solve urgent problems. This is also political. So I analyzed what the political parties' election programs actually say about engagement, donations, foundations, and impact investing.

The result? Practically nothing.

The parties view the topic exclusively through the lens of party foundations and party funding: not a single mention of private foundations in the programs. The CDU/CSU and SPD confirm how important (their) political foundations are, while the AfD rails against them. Not a single mention of donations, except for the Linke's demand to cap party donations. And impact investing remains a foreign word.

In the party programs, private wealth is primarily an object of taxation, with the usual positions: CDU/CSU, FDP, and AfD against; Greens and Linke for more taxes (without saying how); Volt with more details; SPD abstains.

Instead, there is excitement over party donations, of which (once again) the CDU/CSU and AfD receive several millions, while the others get significantly less. However, these make up only a fraction of election campaign funding. In the 2021 federal election, parties received around €200 million in public funds, proportional to their performance in previous elections. The SPD, for example, received €56.1 million. Private donations do not decide elections in Germany, and they are transparent. We are miles away from the influence of billionaires in the US, where Elon Musk helped decide the Trump election with $250 million.

And what about my personal voting decision and recommendation? At 16, I founded a Juso (Young Socialists) group. Since then, I have been an SPD member. Despite everything. Recently, I have often voted Green. Out of conviction. And always privately. I always shared a progressive basic consensus: the state should solve problems. Redistribute money. The rich should contribute more.

By now, I have major doubts: the focus on wealth inequality and redistribution tends to promote antagonism rather than cooperation. Public funding is neither better nor more reliable than private funding. Eco-friendly and social enterprises can sing a song about that. And many amazing German and US NGOs have just experienced their funding being cut by governments at short notice. If we want to solve problems faster than they become more expensive, we need entrepreneurship - in a joint European market, with massive deployment of capital.

That is why I am voting for Volt this time. Not because everything convinces me. But because it is time for a European awakening beyond the old patterns of right or left, market or state.

I think we need MORE, not LESS private money shaping our society - as long as it is transparent and open to everyone. And I look forward to discussions, criticism, and suggestions from the readers of this newsletter.