column
When Germany began to torment at the beginning of the 1990s, the culprits were quickly identified, at least by the then still commercial economists and industry representatives: the Germans in general - too lazy, too lazy, too little ready to change and to get involved in new things.
Now it starts again to scratch in Germany. And the suspicion seems to be obvious to some again: The Germans have simply been over-spoiled in the past few years - by the evil benefits of the Grand Coalition.
The problem could be this time just with those who say such things from ancient times; from a time when the standard response to virtually all of humanity's problems was to leave the matter to markets and corporations and banks - and, most importantly, to make sure that nobody gets too lazy and too expensive (except them) are bankers or boards or so).
This just does not fit the problems we have today, where said German problem solvers abroad for some bizarre attitude are already ridiculed, whether the nagging about zero interest rates and holding high the mysterious black zero or when it comes to CO2 pricing against the Climate collapse and the question goes, whether in Germany really rich and poor drift apart.
Because of interest vampire
From the outside it seems strange, when in Germany loud noise from banks and "Bild" newspaper in all seriousness scolded about zero interest, as if they came from the Italian. So by Mario Draghi or Count "Draghila", the Germany's poor savers ausaugen, as the Wirtschaftsnobelkomitee the "Bild" in the usual conscientious cause and effect analysis has gotten out. Where a look in current interest statistics would have been sufficient to fly up as a rather stupid theses. In fact, interest rates are pretty much the same everywhere low, simply because too much is being saved - and further analysis suggests that that would only change if governments spend a lot of money. But you do not really win in Germany for that. Next drama.
It is becoming increasingly difficult for international experts to understand why Germany's representatives of the people have not been investing large sums in investment. If there is such an obvious dramatic need in Germany to bring the railways, schools, childcare or telephone networks at least once to the level of the 21st century - and the government can currently receive the money for it free of charge or even get a reward for it if they do in debt - keyword negative interest.
Traveling through Paris today, you can not shake off the feeling that the French are a few years away - with Metro apps that tell you exactly how much CO2 you need on different modes of transport; and how fast you could alternatively be at your destination by bike. For some time the electronic payment function has stopped working on the Berliner Bahn's app.
more on the subject
This is economically rather crazy, if meanwhile 68 per cent of the enterprises in Germany say that their production is hampered by the bad state of the infrastructure in the country. Especially when there are now a number of studies in which experts have calculated how quickly the federal government would get its money back, because the investments would lead to more competitiveness, growth and jobs - ie to more tax revenue. Instead, the Germans cultivate a funny penchant for the romance of black zero and the debt brake. As if that would solve any problem.
Nonsense. For the recent decline in the debt ratio, the debt brake would not have needed it; but now it threatens the investment push, where this would be necessary.
Good luck!
In almost all richer countries, there are now quite serious debates about how to stop the socially dangerous trend of divergence in income and wealth. In Germany it is still doubtful whether this is the case with the gap, where inequality has not risen since 2005. On the one hand, which is not quite true - and on the other hand is a crazy palliation. The drama lies in the fact that in Germany even after ten years of continuous growth and reduction of unemployment inequality has not decreased, but rather increased. That's all, just no prosperity for all, as the good Ludwig Erhard once promised him.
It does not take a lot of imagination to imagine what happens when the next crisis comes and the more fortunate, as usually, gets along rather well, the heir generation continues to inherit beautifully, while 40 percent of the people in the country have virtually no assets - and that Divergence is then hard to stop. Good luck, Germany.
And the beautiful new climate package that has just been freshly negotiated? Sounds great - but could join in the series of warning signs. If key government officials respond to the threat of climate change by stating that the issue can be solved through the obsolescence of CO2 allowances and (slightly) higher prices for climate-damaging things, there is a suspicion that there is a potential urgency maybe a touch is underestimated.
More about SPIEGEL +
When things are going badly, higher prices on big cars or on flies will not change much the behavior of those who are affected but have enough money not to change their lifestyle right away. If things go well, such a behavioral change over price signals comes quite slowly. And maybe too slow. Where the price lane anyway makes sense only if enough affordable electric and other means of transport are offered. Which, in turn, would require much more investment in e-infrastructure or rail networks.
Does not work. Because, see above: black zero and debt brake. Germany special.
Sure, other countries also have high-potential newspapers when it comes to analyzing (otherwise the British would probably not be so deep in Brexit crap now). And elsewhere, too, there are economists with pronounced dog-loyalty and a tendency towards outdated ideas. It only urges the suspicion that this is currently happening with us rather uniquely clenched. And fatal. And that a significant part of the public perception somehow seems to be stuck in old good weather times. When there was neither increasingly drastic Reich-arm-gap and associated populism flare, nor low interest rates or impending climate crises. And when absurd things were invented like the black zero or debt brake that is currently hampering us in making policy for future generations.
If the interest rates are so pathologically low, that is a warning that something in the financial system is wrong - and not that the Draghi is evil. If, with continued investment demand, black-and-whites are better off, something is wrong with the understanding of economics. And if people continue to talk beautifully about how the rich and poor have drifted apart, that too is an alarm signal of how badly prepared we are for the next major crises.
/cloudfront-eu-central-1.images.arcpublishing.com/prisa/ZU5KUJFBSRGVVM2SXJTZBZP3XI.jpg)
