Douglas Carswell's Blog

Lessons on liberalisation from Germany

From today, you’ll need to have worked for someone else for two years, rather than just one, before you can drag them to an employment tribunal for unfair dismissal. 

Good. Those who use their energy, effort and capital to create wealth – and work – should not be tied down by tribunals.  Quite apart from being wrong in itself, burdening wealth creators in this way means less wealth and work for everyone else, too.

Alas, this is pretty much the only supply side reform that the Coalition has so far managed to produce. Too often, I’m told, the Sir Humphreys invoke their catch-all excuse to quash ideas they don't like, claiming Brussels won’t allow it.   

Given that we are already two years into this Parliament, perhaps the quickest way to overcome such ingrained inertia is to simply import the kind of employment law liberalisation pioneered in recent years by Germany?       

A few years ago, Germany changed the law so that any one taking on a part time so-called “mini job” earning less than Euro 400 a month could do so without have to pay taxes or social security on it. 

No tax on part-time employment!  Less regulation?!  Guess what happened next?  Millions of people took up these mini-jobs, with an estimated one in four Germans having one last year. Oh, and unemployment fell and the German economy grew .

It says something when Britain needs to take lessons on employment liberalisation from Germany. 

Back to all posts