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> Their social services are more extensive, I believe the minimum wage is higher, and they spend more on infrastructure. They have to spend on top of what they
by throw0101a 5y ago
> Their social services are more extensive, I believe the minimum wage is higher, and they spend more on infrastructure.
They have to spend on top of what they already do, because the current level is the baseline and is generally priced into market expectations.
As the original article is about Germany, in 2020 they had their first budget deficit in a decade:
* https://www.politico.eu/article/coronavirus-pushes-germany-to-first-deficit-in-nearly-a-decade-schwarze-null/ https://www.politico.eu/article/coronavirus-pushes-germany-t...
To put it bluntly: the Germans don't spend s--t.
- da_big_ghey 5y agoGermany tax burden on consumption is over 18% against less then 7% in America: https://www.chicagofed.org/publications/chicago-fed-letter/2017/382 https://www.chicagofed.org/publications/chicago-fed-letter/2... A first deficit meaning Germany spend ordinarily all that and then also more. This is showing Germany spend significantely more for economy size. Evidence is in need for supporting an idea that only spending above and beyond usual have an effect on markets.
- stuaxo 5y agoThis is not like-with-like. Spending on health should be lumped in with taxes to get a real picture.
- da_big_ghey 5y agoDisagree, not all German health spending are in that figure. We have different social program as well that might cause change in figure, so such argument make any comparison meaningless.
- WanderPanda 5y agoPublic spending in Germany is about the same as in the US, no deficit needed, because taxes are so damn high. https://en.m.wikipedia.org/wiki/List_of_countries_by_government_budget_per_capita https://en.m.wikipedia.org/wiki/List_of_countries_by_governm...