February 28th, 2007
What’s… an Ich-AG?

Welcome to the second episode of Was ist das?, which aims to explain some common German phrases that may need some explanation. Today, we’ll figure out what people mean when they talk about creating an “Ich-AG”.
This term was coined in the process of last administrations’ Agenda 2010 reforms. Citizens in mid- or longterm unemployment were encouraged to start their own one-person businesses (e.g. laundering and delivery businesses, chippies) and would in return get state funding and tax advantages. The unofficial term Ich-AG refered to these small businesses, meaning “I-Inc.” – maybe in hope for these miniature companies to turn into successful midrange employers in their area.
Criticism came from all parties in opposition to the social-democratic and green coalition. And in fact, Ich-AGs would regularly have to be closed down shortly after their creation due to a lack in thorough preparation or of consumer demand. The German linguistic Society declared it “Faux-pas word of the year” in 2002.
By 2004, one year after the bill was passed and came into effect, 268,000 Ich-AGs had been created (48,000 had already been terminated up till then). On June 30, 2006 the regulation was concluded, and a combined arrangement for the funding of previously unemployed small business entrepreneurs came into force.
The name “Ich-AG” was subject to a wide range of satire directed against chancellor Schröder’s administration. Left-wing pundits saw the naming as a sign of capitalist egoism, a conversion of every citizen into businesses (similar to the term “Humankapital” – human capital – degrading human beings into plain assets for corporations to acquire). However do not confuse this with a favorite word of Germany’s business and trade press, the “Deutschland AG” – meaning Germany’s top corporations in comparison to a globalized world market.
You may still come across one or the other former Ich-AGs without noticing – some of these actually gained a foothold in their business area and are thriving small businesses with quite a number of employees.
Further information:
- Wikipedia article (German)
- Employment Agency’s article (German)
- German linguistic society: Words of the year (German)






