State or market? The future of our economy in sight!

State or market? The future of our economy in sight!

The role of the state in the economy is a highly topical topic, especially given the economic challenges that many countries are currently having to overcome. On Friday, April 25, 2025, a lecture entitled “The future of our economy and our prosperity: state or market?” will take place at the Technical University of Ilmenau. instead of. Prof. Oliver Budzinski, Professor of Economic Theory, will address the fundamental questions on this topic. The event starts at 3:00 p.m. in the university's Faraday Building, with an entrance fee of 5 euros.

In the wake of the signs of difficult economic development that could already be observed in autumn 2024, pessimistic economic forecasts and reports of declining competitiveness have increasingly come into focus. Challenges such as the threat from Chinese state-owned companies, dependence on American digital companies and increasing bureaucratization are putting the stability of the markets into question. Against this background, demands for government investments in “real” innovations and technologies as well as in infrastructure are growing. A particular focus is on supporting German and European “champion” companies.

Questions of the lecture

In his lecture, Prof. Budzinski will address several key questions. A central debate revolves around whether successful economic strategies should be promoted through government action or through market mechanisms. Global trade should also be compared with economic autonomy, especially with regard to domestic supply chains.

The impact of these policies on jobs and inflation is also highlighted. Another aspect is the social goals, such as sustainability and education, which must be integrated into the economic context. The aim of the lecture is to find answers to the question of whether the future of the economy offers more opportunities or risks.

The role of the state in the economy

The discussion about the role of the state in the economy is not new. Crucial aspects include the provision of public goods and services and the regulation of markets to promote fair competition. There are two main approaches to the role of the state: interventionism, which emphasizes an active role in promoting the common good, and liberalism, which emphasizes the free market. Different perspectives on the role of the state can be derived from various economic theories, such as classical economics and Keynesianism.

Particularly in times of market failure, government intervention is necessary to regulate external effects or reduce inequalities. Instruments for this include tax and monetary policy as well as various forms of regulation and subsidies. These interventions can provide benefits such as economic stability and consumer protection, while also bringing with them the risk of distortions of competition and corruption.

Current trends in the role of the state are influenced by technological advances and global economic integration. The insight into various case studies, such as industrial policy in South Korea or the promotion of renewable energies in Denmark, shows how versatile and different government interventions can be. Like that das-wissen.de summarized, it remains essential to take a differentiated view of the state's role in order to find optimal interventions to overcome economic challenges.

The upcoming event at TU Ilmenau offers a valuable platform to discuss these complex topics and examine the future of the economy from different perspectives.