Germany racked up one economic success after another for most of this century. But the loss of Russian natural gas due to the war in Ukraine has dealt a severe blow to its industry through higher energy costs.
Every other country in the world just issues bonds/debt to generate this “magic money up out of thin air”. Yes it’s eventually paid back through taxes but you fix the problems and then the industries your helping pay it back over time. That’s how debt works.
As you point out, if it issues bonds, the government is going to pay that back, plus interest.
The issue isn’t that Germany cannot get access to capital. The issue is that he can’t assert that industry and workers shouldn’t be hit with the bill, because they’re going to be paying it, one way or another. It might be companies in a different sector than his own, which I expect is what he hopes to see. But one way or another, it’s going to be workers and industry.
Every other country in the world just issues bonds/debt to generate this “magic money up out of thin air”. Yes it’s eventually paid back through taxes but you fix the problems and then the industries your helping pay it back over time. That’s how debt works.
As you point out, if it issues bonds, the government is going to pay that back, plus interest.
The issue isn’t that Germany cannot get access to capital. The issue is that he can’t assert that industry and workers shouldn’t be hit with the bill, because they’re going to be paying it, one way or another. It might be companies in a different sector than his own, which I expect is what he hopes to see. But one way or another, it’s going to be workers and industry.
Minus inflation.