MIL OSI Translation. Region: Germany / Germany –
Source: DGB – Bundesvorstand09.08.2019 clear text 25/2019Konjunktur: the Federal government needs to think big, don’t spill!The economic Outlook continuing to worsen. Using of the domestic economy, the Federal government can stabilize the growth. To do this, you must increase public investments massively, the DGB-plain-text. The debt would have to be abolished, but the brake in its current Form.
The economic outlook continues to cloud. The Ifo Business Climate Index has reached its lowest level in years. The likelihood of recession is rising, stock prices are falling and yields on German government bonds are again reaching lows. The orders in important branches of industry go back. The impending Brexit, the US foreign trade policy and its trade conflict with China increase uncertainty. Federal government must further develop short-time work The federal government must prepare itself to develop ideas that were already successful in the crisis ten years ago. A transitional short-time allowance, which combines short-time working with continuing education and ensures jobs, should be introduced quickly. Immediately, the growth in Germany, which was driven more domestically by domestic economies in recent years, was also to be stabilized. A massive increase in public investment expenditures – u. a. in infrastructure, education, affordable housing, climate protection, charging infrastructure for e-cars – would be an appropriate instrument to do so. Increase of public investment would also stimulate private investment. The German Institute for Economic Research has made new calculations and writes: “An invested € 1 billion will increase private investment in the space of five years by almost two billion euros.” Modernization of the infrastructure oversleep Such a stimulus private investment would be bitterly needed not only due to cyclical effects. Overall, the private sector and the state have neglected the expansion and modernization of facilities and infrastructure in this country. In terms of economic output (GDP), investment in Germany is lower than in any other industrialized country. Since the turn of the millennium, OECD countries have spent around 22 percent of GDP on public and private investment each year, and even more than 41 percent in China. In Germany there were only about 20 percent. Source: EU Commission / Ameco database
Considering only public investments: In the United States, the state’s investment in 2018 and amounted to approximately 3.3 percent of economic output, in France, 3.4 percent, and in Germany, only 2.3 percent (see chart). And, although the Federal government has increased in recent years, the public investment already. In previous years, they were often less than the depreciation, the “net investment” were negative, it was sapped by the substance.The state deserves to borrowing additional public investment to renovate the outdated infrastructure and provide for social and ecological structural change. Secure the quality of life in cities and communities, the future competitiveness of the German economy and thus the prosperity of future generations. In addition, they support economic growth, jobs and tax revenues and to Finance this yourself. Therefore, and because the state deserves to be thanks to a negative interest rate, because, if he borrows money, to be financed by the investment of debt!It is so good, that the policy of the “Black Zero” is always in question. Also good is that more and more economist to connect the inside and the Economists, policy makers and politicians of the long-standing trade Union criticism of the debt brake. The debt brake is an Investment, and thus a future brake and should be abolished in its current Form! The policy must not limit itself longer itself in its ability to act. Also, given the economy, you must think big now, instead of a mess.
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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure need be perfect.