THE ESSENTIALS · Observations from an Entrepreneur
After nearly four decades as a real estate entrepreneur, I have learned one thing: buildings are remarkably honest.
A roof is watertight. Or it isn’t.
A heating system works. Or it doesn’t.
A stairwell is well-maintained. Or it is neglected.
Buildings care very little about good intentions. They respond exclusively to good work. They are patient. But they are unforgiving. Neglect them long enough, and problems will inevitably arise. Not overnight, but gradually. Buildings possess another remarkable quality: they don’t believe press releases. They respond only to what is actually done—or left undone.
Perhaps that is why, in recent weeks, I have found myself thinking about Germany quite often. For some time now, the country has cultivated a passion—not for solving problems, but for managing them. And if there is any time left over, there is an exhaustive debate about them.
There is talk, with great solemnity, about confiscating Porsches and Rolexes from tax evaders in the future. You have to hand it to them for coming up with that idea—especially considering that most taxpayers own neither a Porsche nor a Rolex. They would likely be satisfied if their next building permit were approved faster than the next press conference is announced.
Don’t get me wrong: consistently prosecuting tax evasion is, of course, the right thing to do. But something else is on my mind:
How does the demand for prison sentences of up to fifteen years for tax evasion square with the fact that there are currently around one hundred thousand unexecuted arrest warrants—including thousands against serious criminals?
Tax offenders are apparently easier to track down.
Landlords, however, are even easier to find. They are currently receiving letters because algorithms are scrutinizing their rental listings. It is not the housing shortage that gets the mail; it is the landlord. Meanwhile, the housing shortage continues to wait patiently for an answer.
Almost daily, we read about knife attacks or acts of violence motivated by Islamism. After the attack on the CSD (Pride) parade in Berlin’s Tiergarten, an Iranian acquaintance told me: “In my home country, we have this kind of Christopher Street Day every single day.” His humor was deeply bitter; his message, serious. “Make sure you don’t get used to it,” he said. And I couldn’t help but wonder: What exactly must a known criminal with terrorist ambitions in Germany do before the state takes him out of circulation—before the crime occurs, rather than after? Given the presence of other sinister figures who might well wish to do their welcoming hosts harm, this is worth reflecting on. Perhaps even more so than on Porsches and Rolexes.
Something else strikes me, too. Envy used to be considered a deadly sin. Today, it is increasingly repackaged under the label of social justice. This stands in stark contrast to economic success, which nowadays surprisingly often seems to require justification.
Entrepreneurs. Owners. Investors. Small and medium-sized business owners. People who take risks, create jobs, build housing, and generate the wealth that we subsequently distribute. There is a view that we could do without such people. The idea is for the state to take over and redistribute wealth until socialism is fully realized—that is, until everyone has equally little. Or almost everyone. For those wishing to see the results of socialist state housing policies firsthand, I recommend a look at the former East Germany or Cuba. As is well known, the rush to move there has been—and remains—limited.
Politics should not take offense at such criticism, but rather reflect on it. Trust is a country’s true capital. Many things can be repaired: a roof, a heating system, a façade, even water damage. But trust is the hardest thing to restore. That is why good leadership rarely begins with grand announcements. But rather with a surprisingly simple question: What is important, and what do we attend to first?
I do not believe that most people expect miracles. I believe they simply desire a state that gets back to basics.
Security. Border control. The rule of law. A functioning administration. Fairness based on merit. A strong economy. More housing rather than more regulations. And responsible stewardship of the money belonging to the people who make all of this possible. That would not be an extraordinary government program. That would be common sense.
Former US President Ronald Reagan once said:
“If we lose freedom here, there’s no place to escape to. This is the last stand on Earth.”
At the time, his words referred to America. Today, we can apply them to Germany and Europe as well. If we fail to preserve freedom, the rule of law, and social cohesion—where else would we go? There is no better place to take up this mantle for us. That is why we must stop waiting for others to solve our problems. We have to manage it ourselves. Here and now.
With best regards,
Ernst-M. Ehrenkönig · CEO & Managing Partner
This article was also published in Berliner Zeitung.