this post was submitted on 24 Oct 2023
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It is also internal consumptiom, which is dropping. The biggest reason for that are the liberals, who desperatly want to not make debt during a recession. This is especially stupid, since inflation means the German economy still has a lot of nominal growth. So debt to gdp is falling is likely to fall like crazy for Germany. In other words, the easy fix would be a large stimulus package and there are plenty of good ways of spending that money.
A large stimulus package? For what? Maintaining roads, building railways, removing cracks from the walls of public schools? Who could possibly want that?
Yes cutting government spending during a recession is dumb but also don't forget the decades of stagnating wages to remain "internationally competitive".
Can't have much domestic demand if you don't have domestic buying power.