In the wake of the financial crisis that followed the subprime crisis, North American automaker General Motors (Detroit, Michigan) ran into sales difficulties. This affected the German subsidiary Adam Opel (Rüsselsheim, Hesse) and its branch plants. An unprecedented media campaign lasting several months began in 2009 to force the German government to rescue Opel. It was presented from almost all sides as the government’s duty to prevent the impending insolvency of Opel. Not a single day went by without extensive reports on the radio and television about Opel’s dire sales situation and calls for the government to intervene. – Despite overcapacities of around twenty percent in the automotive industry worldwide at the time, the German government decided to provide guarantees of EUR 4.5 billion. Each of the 20,000 jobs was thus subsidized to the tune of a good 200,000 euros a year. This was tantamount to an increase in the national debt forced upon it by an interest group. – See spending multiplier, government, automotive sector, investment, government, stimulus program, Wagner’s Law.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/