The German Bureaucratic Dream Of “Society with Bound Capital”

Submitted by Thomas Kolbe

They form a massive workforce, the last continuously growing sector of our society: civil servants.

Approximately 5.5 million employees work in the public sector, and last year alone, 205,000 new civil servants were added.

This is by no means a blind attack on the bureaucracy. Civil servants indispensable to our society work to maintain internal and external security and uphold the judiciary as guardians of law and order.

Yet the question must be allowed. How can a civil service army grow by over 200,000 in a single year, even as artificial intelligence and digital automation could handle repetitive tasks?

Across the country – it is an open secret that the public sector functions as a kind of safety net for slowly rising unemployment. Employees often tread on each other’s toes, paralyzed and bored by pseudo-tasks that the political apparatus spontaneously invents to feed its overflowing administration.

They have created a fantasy world. A world where budgets not only never run dry but are continuously expanded—producing what could be called a destructive life of its own. Bureaucracies, after all, are social organisms that fight to survive and strive for expansion.

There is a surplus of bureaucratic energy, combined with the drive to weave the still young ideology of green socialism into the state. This creates a dangerous mix of ideological messianism and administrative activism, which fools taxpayers into thinking something is being accomplished—even where tasks could clearly be automated and restraint would be better.

One of the newer ideas, traceable to the ministerial environment, is the creation of a new corporate legal form.

The debate surrounding the upcoming introduction of the Society with Bound Capital offers a deep insight into the ideological and intellectual status quo of the German civil service and state apparatus. The new legal form is intended to prevent profit distributions and redefine owners as a kind of participating activists.

In short: The basic rules of the market economy are being turned upside down. One could also see it this way: in the Society with Bound Capital, the typical bureaucrat’s desire for absolute stability and predictability crystallizes, freezing the status quo.

Economic resilience and adaptation within capital structures via free markets are mortal enemies of this ideology, which dangerously mixes socialist elements with green subsidy mania—what we know as eco-socialism.

No deeper sociological studies are needed to see who this corporate law targets. The gigantic green subsidy apparatus eagerly seeks to divert capital into an NGO-like structure.

It would expand the civil service into a state-tethered clientelism that relies on subsidies, grants, price guarantees, and a steady stream of tax money—supported by politically manipulated market structures that perpetuate themselves. For businesses, this effectively means slowed investment, stifled innovation, and severely reduced responsiveness to market and crisis shocks.

What the Ministry of Justice bureaucrats have painstakingly devised resembles a medieval fideicommissum, a type of noble inheritance trust. It is the antithesis of private property, contractual freedom, and all the civilizational achievements that have given us prosperity, security, and crisis resilience, allowing rapid response to external shocks through capital reallocation.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.