Re:Entire German bond yield curve back in sub-zero territory
by WanderPanda on Tuesday August 03, 2021 @11:31AM
(#28050393)
Public spending in Germany is about the same as in the US, no deficit needed, because taxes are so damn high.
https://en.m.wikipedia.org/wiki/List_of_countries_by_governm...
Re:Entire German bond yield curve back in sub-zero territory
by da_big_ghey on Tuesday August 03, 2021 @11:24AM
(#28050289)
Germany tax burden on consumption is over 18% against less then 7% in America: https://www.chicagofed.org/publications/chicago-fed-letter/2...
A first deficit meaning Germany spend ordinarily all that and then also more. This is showing Germany spend significantely more for economy size.
Evidence is in need for supporting an idea that only spending above and beyond usual have an effect on markets.
Re:Entire German bond yield curve back in sub-zero territory
by stuaxo on Tuesday August 03, 2021 @11:46AM
(#28050618)
This is not like-with-like.
Spending on health should be lumped in with taxes to get a real picture.
Re:Entire German bond yield curve back in sub-zero territory
by da_big_ghey on Tuesday August 03, 2021 @03:43PM
(#28053244)
Disagree, not all German health spending are in that figure. We have different social program as well that might cause change in figure, so such argument make any comparison meaningless.
They have to spend on top of what they already do, because the current level is the baseline and is generally priced into market expectations.
As the original article is about Germany, in 2020 they had their first budget deficit in a decade:
* https://www.politico.eu/article/coronavirus-pushes-germany-t...
To put it bluntly: the Germans don't spend s--t.