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>Borrowing to the limit while times are good leaves you no room when times are bad Times are bad. Germany is very likely in a recession right now and they have
by fauigerzigerk 7y ago
>Borrowing to the limit while times are good leaves you no room when times are bad
Times are bad. Germany is very likely in a recession right now and they have fallen back technologically. Now is the time to spend some money and it was never cheaper.
- majewsky 7y agoExactly. And if we don't spend it on a proper Energiewende and to fix our crumbling infrastructure, we will pay it back 20-fold in a few decades.
- luckylion 7y agoTimes are starting to look bad ... but that's my point: don't burn all your wood on the first day of winter when you'll likely still have months ahead.
- dragonwriter 7y ago> don't burn all your wood on the first day of winter when you'll likely still have months ahead. The analogy doesn't hold since burning wood doesn't help shorten winter.
- fauigerzigerk 7y agoDon't forget that recessions have a self-reinforcing, psychological element that winters don't have. Money spent earlier may have a significant multiplier effect. Also, I think spending money is too slow anyway, especially if it is spent on infrastructure, technology development, retooling an obsolete auto and energy sector, etc. In my view, they are already very very late.
- wbl 7y agoGermany has enormous borrowing capacity especially in a recession. Governments are not households.