We need reforms instead of election promises on credit

In the battle for votes, the parties promise the blue of the sky: social security, “respect” in the form of cash benefits and a climate policy that does no harm. But the coffers are empty. So it takes more than just ideas based solely on new debt.

AIn the last few meters before the federal election, the parties promise the blue of the sky. The pensioners are ensnared, as are the families, the so-called common people and of course the middle class. Almost everyone can be found in at least one of these groups.

And everyone is given the prospect of financial relief, at the same time more social security, “respect” in the form of cash benefits and a climate policy that does no harm. What all election promises cost remains hidden, because price tags are missing in all party programs.

The accusation of dubiousness is mainly raised against the FDP because it promises noticeable tax breaks. If the liberal plans were implemented, however, the future Federal Minister of Finance would have high short-term revenue shortfalls, especially since all taxpayers would be relieved.

However, calculations by the renowned Ifo Institute show that such tax cuts increase growth and employment so much that the loss of income is significantly lower after a few years.

How sound future financial policy is depends not only on income, but also on expenditure. And here, regardless of the costs, the SPD and the Greens make election promises that are not only expensive in the short term, but also threaten to permanently ruin the state budget.

In the case of pensions and long-term care in particular, performance increases are promised to the detriment of the future generation. The social coffers and the federal budget are empty after the Corona crisis. In view of demographic change, reforms are essential – no credit-financed additional services.

Red-green also sets false accents with the promises of higher rates for Hartz IV and basic child benefit. Anyone who wants to enable social advancement must rely on support, but also on performance in the education system and on the labor market. On the other hand, those who grant families the more state money, the less the parents earn themselves, ensure that poverty solidifies in certain milieus. And then the call for even more tax-financed social benefits becomes louder.

This choice is undoubtedly also a fiscal decision.

“Everything on shares” is the daily stock market listing of the news business editor here. Every morning from 7 a.m. with our financial journalists. For stock market experts and newcomers. Subscribe to the podcast at Spotify, Apple-Podcast, Amazon music and Deezer. Or directly over RSS-Feed.

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