While I wholeheartedly agree that at least a massive public works programme (including "another expensive environmental scheme that takes years to implement") would do good for Germany, I am not convinced that the German economy, or even German exports, is in mortal danger, like the scarecrows say (for always changing reasons). Export failed to collapse as predicted in recent recessions, either.
I note Münchau's focus seems to be a financial capitalist one: get companies' hands on people's savings. *Lunatic*, n. One whose delusions are out of fashion.
The consumer voucher idea is also advocated by SPD members other than Steinbrück. I'm not entirely sure I like the idea: if they end when the economy rebounds (i.e. unlike permanent payrises), won't low-earning people, and that sector of domestic consumption, back where it was before?
OK, this could be managed by a slower tapering-out rather than instant end of the programme, or, even better, a reduced-scale voucher programme maintained until all old fridges are replaced. *Lunatic*, n. One whose delusions are out of fashion.
Anyway, it's the freeing up of money on the consumer side that matters in the long term for the economy, not the extra money for Siemens and Osram and Bosch. From the beginning of this stimulus talk I was thinking 'it might be a good idea to spend on greener stuff and infrastructure'. Because I always think that. But I wasn't sure how. The more I think about it, the more I think it's a great idea to do things like providing vouchers for energy efficienct appliances, and expanding the existing preferential (preferably down towards zero) rate interests for greening up houses. These things are long term investments. They're net positives to society on a level that we have been systematically underestimating.
A bit more on my blog.
P.S. I'm disappointed in the PES for not taking this theme and running with it. They had a pan-European Keynesian green expansion strategy lying on the shelf and have basically left it there, as far as I can tell.
From what I could find on the internet, the leader of the Berlin state Linke has supported this idea, as well as Andrea Nahles (lefty deputy leader of the SPD). But environment minister Sigmar Gabriel is opposed, on rather spurious grounds.
