Dear friends and colleagues,
In light of rising vaccination rates and falling incidence numbers, many a heart beats faster against the hope of experiencing a carefree summer. What remains as a result of the pandemic is a public sector with record debt – and with it the question of how much debt is actually too much debt.
This week, four top economists also asked themselves this question in a new episode of the Debt Talks Series by our colleagues at the Institute for New Economic Thinking. The tenor: There is no magic number that tells us how much debt in relation to GDP is really too much. But there are plenty of indications that stabilization policy at the macro level is no longer dominated by the money lenders, but the state. A new era? In view of the savings glut and rising inequality, circumstances against which conventional monetary policy instruments typically reach their limits, there would be plenty of good reasons for one, so the consensus among the economists. A summary of the session can be found here.
And what do politicians have to say about the debt issue? Not trivial so shortly before an election that will set the course for the future. Add to this the climate crisis, most recently evidenced by previously unseen heat records in North America, and the rich getting richer even during a pandemic – surely there is no shortage of major issues in the election year 2021. In a special series of our Short Cut format, we therefore invite candidates for the Bundestag to discuss their essential economic policy proposals – with expert economic sparring partners and in front of an audience.
Norbert Walter-Borjans (SPD) will start off the series on the topic of wealth tax, on August 24th, followed by Christian Dürr (FDP) on the topic of tax cuts and their multiplier effect, on August 26th. Further Short Cuts with representatives of the other democratic parties are planned. The details – here.
Finally, we want to end today’s newsletter on a personal note: we are looking for a Platform Manager to join our team in Berlin, starting immediately. Feel free to share. The job description can be found here.
Have a nice weekend,
The Forum New Economy Team