Posted on 08/21/2019 10:01:06 AM PDT by Olog-hai
The news first reported by Bloomberg on the weekend piqued the interest of economists worldwide. German Finance Minister Olaf Scholz, the report said, had for the first time mulled the possibility of putting together an emergency stimulus package to prop up the economy, should a full-blown recession beset the nation.
This in itself revealed a fundamental change in thinking and philosophy as for a decade or so Scholz’ predecessor, Wolfgang Schäuble, had been an unwavering supporter of a policy that just wouldn’t accept any fresh borrowing. His balanced budget policy had even made inroads into the German language, with lawmakers and ordinary people starting to call it a “black zero” approach, symbolizing Schäuble’s Swabian obsession with not letting any balance sheet end up in the red. […]
Not many details are known so far about what the finance minister is planning. Media reports said Scholz was mulling a €50 billion ($55.4 billion) package to shore up the economy — that would more or less resemble the scope of fiscal stimulus from the state during the global financial crisis about a decade ago. […]
There’s no denying that a growing number of analysts worldwide have been criticizing Germany for doing too little too late. Many suggest it’s unwise to wait until we get the official figures for the current quarter only to see on paper that Germany is really in a technical recession. …
(Excerpt) Read more at dw.com ...
Is this going to be like that 2008/2009 cash-for-clunkers deal that Merkel dreamed up?
Strangely, the words “tax cut” do not appear in the article.
Politicians can seldom act
it is their instinctive nature to only react
In the Germqn case, he is thinking about reacting
The former East Germany should have become its own real country post “wall”.
The auto industry wants a stimulus, so they submitted an order to their politician employees.
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