this post was submitted on 24 Oct 2023
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Europe

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[–] Brainsploosh 12 points 11 months ago* (last edited 11 months ago) (2 children)

Weird how an export economy is faring worse when clients' buying power is diminished.

Industrialists are whinier than I imagined...

[–] [email protected] 15 points 11 months ago

They are used to getting bailed out by the government, when they are about to fail. The automotive industry is now crying, that politics did not push them into electrical vehicles and that is why they overslept adapting to new technologies.

[–] [email protected] 5 points 11 months ago (2 children)

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.

[–] [email protected] 1 points 10 months ago

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.

[–] [email protected] 1 points 10 months ago

A large stimulus package? For what? Maintaining roads, building railways, removing cracks from the walls of public schools? Who could possibly want that?