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This is absurd in the context of Germany. They have a fetish with "fiscal responsibility". It'd be the natural inclination of every politician to cut back on de
by Despegar 7y ago
This is absurd in the context of Germany. They have a fetish with "fiscal responsibility". It'd be the natural inclination of every politician to cut back on deficits (and I imagine within a few years there'd be pressure to).
Germany is a country with a broken military and infrastructure. They should spend money on that. They should cut taxes for workers. There's plenty of shit for Germany to spend money on, and it would cause yields to finally rise.
The ECB has no choice because rich countries refuse to spend money.
- cwperkins 7y agoI want to be clear that I think the Germans, Dutch and Swedes can afford to do more for the benefits of their own economies and of Europe’s. Germany needs to ween itself off of lignite coal and get better broadband infrastructure as well as contribute more to NATO. On the other hand in a place like Argentina, I’m not sure what the exit strategy.
- bilekas 7y agoI really hate this idea that everyone needs to just constantly be spending. It's useful but there is nothing wrong with having a slow stable fincal conscious ecconomy.
- Despegar 7y agoAnd I really hate the moralizing as if the national economy needs to be run like a household budget.
- growlist 7y agoI think the moralizing is useful if it means future generations aren't going to pay the price for today's profligacy.
- Despegar 7y agoThis extremely poor misunderstanding of macroeconomics is likely to lead to the outcome you're supposedly trying to avoid.
- kyuudou 7y agoSo... when does the music stop? Some kind of debt jubilee or currency reissue?
- yokaze 7y agoInstead future generations are going to pay for today's economic ideology
- raxxorrax 7y agoCreating debt is taking money from the future. There are some discrepancies between running a business and a national economy, but I think the results are still pretty unknown.
- bilekas 7y agoWhen anyone tells you that you should spend your money more, you should have a red flag.
- barrkel 7y agoDo you object to people being employed, being productive, and creating value? Because the way you get that is by spending on it.
- bilekas 7y agoThis is a really dangerous fallacy.. If you genuinely believe this then you don't even have the economic high-ground. But a small high level lesson is clearly due, just in-case you attract people who aren't sure. I can only comment democratic government, so: The government is not responsible for your individual job, your employer is, a government is responsible to make sure you have access to a job, or the ability to create one. After 1 of those requirements has been passed, you pay tax to ensure others can do the same. Another responsibility of the government is to ensure that the pensions are looked after, probably one of the biggest these days thanks to 'boomers', but they are none the less responsible for it. Thats why the retirement age is decided by government. Another one they need to look after, trade options, within Europe we're quite lucky, we have a free trade and have all round standards of what we can trade. Another is infrastructure, if I want to trade a lot, I need infrastructure, if I have a lot of savings; for the people, I will invest in that, thus contributing to all the above. So: Your question is a joke I guess, mainly because you don't back anything up by your claims. If you think all you said, lay it out, lets discuss, maybe I'm wrong.
- Analemma_ 7y agoNational economies are not households. My spending is your income, and your spending is my income. You can talk about "investment" all you want but without consumer spending there's never any return on that investment and so no one will bother. Having household savings is good but at a certain point it bottlenecks the economy.
- AWildC182 7y agoTrue, but it doesn't seem to really be the problem right now. The overwhelming majority of people don't need to be told to spend money. If they have it, they'll spend it on stuff, for better or worse. Looking back at the past half century the big variables that have changed to get us here seem to be A) lack of world wars to devastate Europe B) rising automation leading to skyrocketing worker productivity C) society's wealth becoming increasingly concentrated within a billionaire class and D) relatively flat wage growth to spite B. There are also probably a few other's I'm missing too. TLDR seems like there's a bigger picture to the macroeconomic situation than just spending and saving at the moment. I'm really curious to see how this will shake out going forward.
- QuesnayJr 7y agoApparently Germans do need to be told to spend money.
- OscarCunningham 7y agoSpending does't necessarily mean wasting money on short-term consumption. They could also spend on sustainability and infrastructure.