This idiom is often associated with damaging or impeding one’s own plans, progress, actions or best interests through foolish actions or words. Germany may be exhibit A. It would seem that a major developed country facing a generational energy crunch would be trying everything possible to expand supply while doing as little environmental damage as possible. Yet Germany is proceeding to close about half of the country’s nuclear power generating capacity this year and the balance next year. Currently, nuclear power is the only scalable source of non-fossil fuel electrical energy.
With the closing of the country’s nuclear capacity, Germany will have to increase the use of coal and further depend on Russian natural gas.
It is difficult to think of a more self-defeating policy on economic, climate and geopolitical grounds. Moreover, this is going to crush consumers and industry with shortages and dramatic increases in prices for electricity and natural gas.
On September 29, 2021, we posted a blog titled “Let Them Freeze in the Dark”. Apparently the German government thinks this might be a good idea.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA