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If Germany has so much more public debt, why is the UK crying, Germany should follow Browns policy?

Actually there are good reasons.

  • Trajectory counts. This 64.90% are only slightly more than 1998. In the last two years, this number was going down, while Britain was already running a high deficit on which Brown is now adding.
  • It is very credible that this high indebtness is a one off issue for Germany. Kohl was running a pretty conservative fiscal policy in the eighties. The unification was extremely expensive and made it necessary to adjust the revenue and the state's spending. For several reasons this took a very long time. There is no similar huge project in sight.
  • The Euro is pretty much reserve currency. Germany is likely paying lower and more stable interest in the long run and can therefore bear higher indebtness.
  • The private sector in the UK is in a much more dire situation than in Germany. Before the German state goes bankrupt, it will tap the private wealth. Brown's policy is doing the inverse, it increases gov't debt for making the private sector wealthier.


Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Fri Dec 12th, 2008 at 07:15:54 PM EST
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