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> Why spend, when you save for "bad times" or your kids' future? And more recently: Why spend, when you want to reduce your footprint on this planet? You're fr
by pm90 7y ago
> Why spend, when you save for "bad times" or your kids' future? And more recently: Why spend, when you want to reduce your footprint on this planet?
You're framing this in moral terms whereas it should be viewed as more in economic terms. Spending by Germans creates more demand for Goods and Services, encouraging economic booms in the rest of Eurozone. These developed countries would then develop the skills and accumulate capital to compete with their peers in Asia. That would be a huge win-win from a European perspective.
Honestly, this shouldn't be viewed as encouraging the average German to spend more of their savings, rather, the German Federal Government borrowing more + spending heavily on infrastructure building in Germany + the rest of Europe.
- deleted 7y ago[deleted]
- Paradigma11 7y agoWhy would greece or italy grow because germany buys more chinese products? Sure the € would depreciate a bit but there have already been currency fluctuations that did not show a big positive effect on the malingering economies.
- Paradigma11 7y agoOops my bad, ment sick instead of malingering. Did not knew the negative meaning of malingering of pretending to be sick.
- ChuckNorris89 7y ago>Spending by Germans creates more demand for Goods and Services, encouraging economic booms in the rest of Eurozone. In theory. In practice however, all that negative rate money that people will borrow will all go to real estate causing the already high prices to skyrocket overnight while wages stagnate. Goods and Services are already cheap enough that we don't need loans for. When rates were high, property prices in Germany were cheap or at least reasonable as they were pegged to the income levels. When rates went down property prices went to have no correlation to salaries anymore as now every average Joe and his mom could go to the bank and max out a 30 year loan on as big of a house his bank could afford to give him. That's how Germany went from being one of the cheapest housing markets in Europe to one of the most expensive in the last 10 years.
- pm90 7y agoWhy not build more housing then? Real estate speculation is bad but there seems to be actual demand for more housing if I’m reading your comment correctly.