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.
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.
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.
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.