The social market economy is the government’s economic policy model, as everyone knows. But hardly anyone is aware of the possibilities that the state has to intervene in the economic system. Government has a great scope for interpretation is in the concept of the “social market economy”.
Economic stimulus programs and tax law
The state also has the ability to intervene in the entire economic system. With the help of tax law, for example, they control the development of profits and investments and depreciation. Exhaust gas taxes or environmental taxes can influence the environmental friendliness of companies.
Economic stimulus programs primarily serve to get a faltering economy going again. The state invests more in infrastructure and subsidizes companies to create or secure jobs.