• 1.25K Posts
  • 1.07K Comments
Joined 3 years ago
cake
Cake day: June 11th, 2023

help-circle











  • The €500 billion special fund for military spending had a big impact. For example, mortgage interest rates immediately jumped by 0,5%.

    You cannot fix the German economy by fiddling with income taxes a little. There is also lots of things the German government cannot do (e.g., ECB interests rates, Volkswagen business strategy).

    I believe the biggest lever they have is to build residential areas to reduce housing costs. That shows up in the reform package but only in vague terms:

    1. Wohnungsbau: Es wird eine Wohnungsbaugesellschaft für bezahlbares Wohnen (WBG) errichtet. Ziel ist es, vermehrt Wohnungen im bezahlbaren Preissegment zu bauen, wo der Wohnungsmarkt auf Dauer nicht ausreichend bezahlbaren Wohnraum bereitstellt. Die WBG soll den sozialen Wohnungsbau sowie den industriellen Hochlauf seriellen Bauens unterstützen und insbesondere in Regionen mit nachgewiesenem Wohnungsmangel tätig werden.

    So they want to create some kind of association to build cheap housing. No timeline, no budget, no goals.


  • For example, they plan to reduce taxes by 10 billion. Their example is “family of four with 60k income gets a reduction of 600 in 2028”.

    Germany’s GDP is 4470 billion. These 10 billion do not make any significant difference on the grand scale.

    On the personal scale, for this family of four, its +50€ per month or +12,50€ per person per month. Also not much of a difference.

    Inflation makes a bigger difference than that by 2028. Also, here I just account for the tax aspect. This family will face increased costs to pay for pensions and stuff and it might well be a net negative for them. I’ll wait for some professionals, like the DIW, to calculate that.