Special funds: where the 500 billion euros bring prosperity

The economic situation is often tense in young families. Household income is rather low, savings books and depots are still largely empty. Nevertheless, thousands of Germans decide to buy or build a house every year. To do this, take up colossal loans, 300,000, 400,000 euros. Schieren madness? Or the right decision?

It is currently similar to the Federal Republic. The economic situation is tense, household income is scarce. And now Schwarz-Rot wants to form a 500 billion euro “special fund”, i.e. take out loans in order to get better later. A good idea? Or Schieren madness because it is negligent to leave a gigantic debt mountain for future generations?

It’s a good idea. Because it is an economically clever, entrepreneurial decision. The special fund should even prove to be a real stroke of luck for future generations. Used reasonably, our children and child children will be much better than we do today. They will be like young houses: According to studies, they have a five -time net assets than peers in rent when they enter retirement age. They are also better there when it comes to financial assets.

So why the whole excitement? Unfortunately, too many people confuse debt and investments, and the boulevard operates the ignorance with hearty headlines (“historical debt hammer”). There is a huge difference between debts and investments: loans to consume (for example to get fat cars) can ruin. Investments (for example in real estate) several growth and prosperity.

Craftsmen invest borrowed money in order to be more innovative, generate more sales, increase profits, to repay the loan and be more successful in the end. If managers were not doing this, corporations such as VW or Thyssenkrupp have long been history.

That is why it is good that the Union no longer has to look at the FDP and has said goodbye to the fetish debt brake. What does upcoming generations use a supposedly sensible, steadfastness of 62 percent, which are bounding to stingy, if streets, bridges, train, administration and industry are even more pitifully than today? If the decay has progressed so far that the repair would devour many times over?

“The best opportunity to use capital is when it comes downhill,” said the investor Warren Buffet. Stubborn to give the economical sample student, so it would be a wrong way. Because that would mean brokening Germany for another years. The Green Minister of Economics Robert Habeck had recognized that. The new strong woman of the Greens, the economist Katharina Dröge, also knows that. And slowly more and more Union politicians dawn.

The special fund offers opportunities for a better future. It can revitalize the economy, create jobs, increase competitiveness, modernize infrastructure, and make our economy overall. It can trigger multiplier effects, accelerate growth and prosperity: if the situation and mood improve in the country, people consume more, investors invest more private capital.

It is important that the special fund is really used for “additional” investments and is not wasted for consumer election gifts. Not only the opposition has to pay attention to this, but also the youth associations of the future government parties. Only then will the loan effect be effective. The Economists of DIW Berlin predict that the economic output will be around one percent higher as a result of the investment package. From 2027 by more than two percent.

Sure, it is impossible to estimate how the German economic situation is based on the twelve -year term of the special fund. There are too many external factors that can influence wars, climate change or a financial crisis. But there is a nice role model how positive willingness to invest can be done: the energy transition. Since the turn of the millennium, many billions of euros have flowed into the project, which has always complained about the opponents of Lauthals. But the investment pays off for today’s generation: Germany has not only reached its climate goals, it is also faster than expected to get green energy on your own. That is the very best basis for the prosperity of the future.

By the way: In representative surveys, in which young people are also heard, it turns out that the Germans are not too afraid of the “debt hammer”. On the contrary: Almost two thirds think that you have to accept more debts to deal with the upcoming tasks. Very reasonable, these Germans.