They are used to getting bailed out by the government, when they are about to fail. The automotive industry is now crying, that politics did not push them into electrical vehicles and that is why they overslept adapting to new technologies.
It is also internal consumptiom, which is dropping. The biggest reason for that are the liberals, who desperatly want to not make debt during a recession. This is especially stupid, since inflation means the German economy still has a lot of nominal growth. So debt to gdp is falling is likely to fall like crazy for Germany. In other words, the easy fix would be a large stimulus package and there are plenty of good ways of spending that money.
A large stimulus package? For what? Maintaining roads, building railways, removing cracks from the walls of public schools? Who could possibly want that?
Yes cutting government spending during a recession is dumb but also don’t forget the decades of stagnating wages to remain “internationally competitive”.
Can’t have much domestic demand if you don’t have domestic buying power.
Weird how an export economy is faring worse when clients’ buying power is diminished.
Industrialists are whinier than I imagined…
They are used to getting bailed out by the government, when they are about to fail. The automotive industry is now crying, that politics did not push them into electrical vehicles and that is why they overslept adapting to new technologies.
It is also internal consumptiom, which is dropping. The biggest reason for that are the liberals, who desperatly want to not make debt during a recession. This is especially stupid, since inflation means the German economy still has a lot of nominal growth. So debt to gdp is falling is likely to fall like crazy for Germany. In other words, the easy fix would be a large stimulus package and there are plenty of good ways of spending that money.
A large stimulus package? For what? Maintaining roads, building railways, removing cracks from the walls of public schools? Who could possibly want that?
Yes cutting government spending during a recession is dumb but also don’t forget the decades of stagnating wages to remain “internationally competitive”.
Can’t have much domestic demand if you don’t have domestic buying power.