The government spending ratio of Germany is increasing, as the new chancellor said recently. Dr. Hermann Stern discussed this with the guests of our weekly coffee chat Zoom Chat (in German).
With growing economies and growing prosperity, demand also grows, for both public and private services. When the private economy becomes more efficient, its output increases while its share in the Gross National Product may actually decrease.
Should the private sector still grow, even though it doesn’t necessarily need to? It already provides a lot of the necessary products and services. If it is ever more efficient, the share of public services increases. That's not necessarily bad. Has government spending been carried out efficiently or not - that is the question.
More people need to be trained for the already happening work automatization and people who no longer do meaningful work need to be taken care of. Healthcare and education should be a priority.
Listen to all of Hermann’s opinions and continue the discussion with us in our free Zoom coffee chat chats.