With the boom is that as with any good Party: Even if the music is still so good – it is enough. And if you believe the Economists, we are in Germany at this point. The mood shifts, the upswing is over. Yet all the while to feel. Unemployment is low and consumer sentiment. But Germany's most important industry is already in crisis: the industry.
While the companies presented this week at the Hannover trade fair of machines and robots, showed a survey among hundreds of industrial corporations: their business is run in March, one of the worst for more than six years. The leading research institutes therefore expect for 2019, in the meantime, with a growth of 0.8 per cent forecast in the autumn you will have halved. These are not good prospects.
bring around whining, nothing. The policy now needs to counter and fast. Actually, you would have to do this for a long time. Because the more you invested in the good times, the better you get through the bad. However, this rule has been ignored by the Federal government in the last few years largely.
The chickens coming home to roost. Although the state has spent quite a money – only in the wrong place. So, the Federal government has used the good times to distribute gifts to voters: by introducing the mothers pension, retirement at 63 or the baukinder money. All of this brings to the individual, but helps the economy.
Other important investment remained on the track. For example in the rail. The German rail network is so dilapidated, because the Federal government has not provided enough money for the modernization of bridges, Railways or tunnels. Meanwhile, the backlog of investment is not so large that self-sufficient a billion, who wants to spend the Federal government is now a year more. Including everyone is at the train station, beaches, or hours, must long wait for the train suffers ultimately. Also the companies that transport their Goods on Rail, get problems.
The railway is a good example of bad policy
And the track is just one example of the areas in which Germany is suspended. Thus, the state has missed it, too, to invest in time in technologies such as Artificial intelligence or electro-mobility. Also, you would have the years of recovery. It is only now that the Chinese are far ahead, it will be rescheduled. And much too hesitant.
Therefore, the policy now needs one thing above all: the courage to spend more money – for the rail network, road network, mobile network. This, of all things, the Federal government seems to have the Minister of Finance. The Black Zero in times of declining tax not to endanger the revenue, is calling on his fellow Ministers to Save money. He is doing exactly the opposite of what would be needed now.More about
"The recovery is lower at the end of" German Economists economic forecast, dramatically
the Black Zero was never a law, it is mandatory to observe. Rather, it was for the policy is only an Instrument for the state to get debt back under control. This has been achieved. Only we must not make the mistake, therefore, not important investments. Because then you no longer slows down only the debt but also the economy. And then the Party is over for good.