Unwirtschaftlich

Unwirtschaftlich is a German term used to describe actions, investments, or decisions that are not economical. It denotes that the resources required to achieve a goal exceed the value or benefits produced, or that more cost-effective alternatives exist. The term is common in business, economics, and public administration, and is often contrasted with Wirtschaftlichkeit, the principle of economic efficiency.

In practice, unwirtschaftlich is determined through quantitative and qualitative assessment. Analysts apply cost-benefit analysis, return on investment, payback period, and net present value to compare options. An option is considered unwirtschaftlich if its costs or inputs outweigh the expected benefits or revenues, especially when better alternatives exist with a more favorable cost-benefit ratio. The evaluation is sensitive to the time horizon, discount rates, and the inclusion or exclusion of non-monetary effects such as strategic value, risk reduction, or social impact.

Contexts vary: in a company, a production change may be unwirtschaftlich if operating costs rise without a corresponding increase in output or quality. In public budgeting, an expenditure may be deemed unwirtschaftlich if it undermines the principle of economy and efficiency, or if it fails a cost-effectiveness criterion. The concept is related to efficiency, profitability, and opportunity costs. It is also important to note that something can be unwirtschaftlich in a narrow sense but still justified for regulatory compliance, social objectives, or long-term strategic reasons.