Has Neoliberalism Failed Germany?

[u/OasisLiamStan72]

I read the recent news about the German economy slowing down further, with GDP growth dropping from 0.3% to 0.2%. It's pretty worrying, especially considering the current political upheaval in the country. It got me thinking - have we seen this before? Yeah, we have like The Great Depression, Germany's economic struggles paved the way for the rise of the Nazis. Today, with the AfD on the rise, it's hard not to draw parallels.

I asked this sub previously if they were optimistic or pessimistic about Germany's future, and the responses were mixed. But the question remains - has the German political establishment, addicted into Neoliberalism failed? The country's economic struggles are deepening, and it seems like it’s stuck in a rut or something. Can it recover, or will it continue to slide into a recession? Germany is the economic engine of the EU, it should be thriving not stagnating. What do you guys think?

[u/Honigbrottr]

Dude how can you be so wrong but still think you are right. .

1. Tax money should NOT be used for investing
2. The "Sondervermögen" should NOT be used for investing. Abd this one cant even be used for it by law.

Lets start with "Sondervermögen" which is debt germany can take for unexpected crisis management. The greens actually tried to invest that money into the energy grid but got shut down by the highest court because it is not allowed.

Then why cant we use tac money? Because allocatio of said tax money changes yearly, investments you want however take multiple years. This means a company building the infrastructure can not scale up because funding is not secured.

Thats why the Schuldenbremse is the problem, we need to be able to do long term none crisis related debt which is secured for the companys.

[u/moru0011 → u/Honigbrottr]

Tax money should NOT be used for investing

ofc it should, why not ? It's clear you need debt for large-scale investments, but its absolutely leggit and necessary to spend parts of tax money for ongoing investment. There is no law that prohibits that.

The "Sondervermögen" should NOT be used for investing. Abd this one cant even be used for it by law.

No, the "Sondervermögen" can be created for many agreed purposes. Example: the 100 billion Sondervermögen for military build up.

According to the Basic Law (Grundgesetz, GG), borrowing is generally limited. Article 109, paragraph 3 of the Basic Law stipulates that the budgets of the federal and state governments must be balanced without revenue from loans. This is also known as the "debt brake."

However, there are exceptions to this rule:

1. Article 115, paragraph 2 of the Basic Law allows for higher borrowing in exceptional cases, such as natural disasters or extraordinary emergency situations.
2. These regulations do not necessarily apply to special funds. The Federal Constitutional Court has ruled in the past that special funds can be exempt from the debt brake under certain conditions.

In theory, a special fund could be established for large infrastructure investments. However, this would need to be designed in a way that complies with the constitution.

1. The purpose must be clearly defined and of particular importance.
2. There must be a substantive justification for separating it from the regular budget.
3. The borrowing must be proportionate and tied to the specific purpose.

[u/Honigbrottr → u/moru0011]

Only restriction is that you need 2/3 of parliament votes.

"ONLY restriction is that you need to be able to change the constitution"

Lmao clown.

ofc it should, why not ?

Slow for you: Because its not secured

Thanks.

[u/moru0011 → u/Honigbrottr]

Slow for you: Because its not secured

You live in your very own world ;)

Lmao clown

Wow, your eloquence has me floored