Financial expert: Economic policy measures to combat inflation and promote investment

Financial expert: Economic policy measures to combat inflation and promote investment

According to a report by vorwaerts.de,

The most recent events of the new year, such as the rail strike and the farmers' protest, reflect the heated mood in society and the economy. A survey by the INSA Institute shows that combating inflation and the desire for affordable housing are at the top of citizens' priorities. These findings point to the economic priorities for the year, namely fighting inflation and promoting investment.

The relatively high inflation rate of the past two years has led to a deep cut in purchasing power, especially for low incomes and single parents, particularly due to the increased food prices. There is a need to create a balance, particularly through tax or duty cuts for low to middle incomes, as proposed by the SPD. In addition, housing benefit should be increased and wage increases with high base amounts should be implemented in order to increase purchasing power.

Investments in the modernization of public services and housing construction could not only give the economy new impetus, but also alleviate worries on the housing market and improve the infrastructure. These measures could be financed through an increase in inheritance tax, higher taxes on the highest earners and generous loan schemes for housing.

Despite the obstacles and challenges, it is possible to implement these measures. In the long term, however, a reform of the debt brake is essential in order to be able to overcome all challenges.

The measures described could have a significant impact on the market and the financial industry. A reduction in taxes and contributions for low to middle incomes would have a direct impact on citizens' disposable income, which in turn could affect consumption and demand. Investments in housing construction and the modernization of public services would not only stimulate the construction sector and related industries, but also have long-term effects on the infrastructure and the quality of life of citizens. An increase in inheritance tax and higher taxes on the highest earners would generate revenue that could be used to finance these measures.

Overall, the proposed economic policy measures show the potential to influence the market and transform the financial industry if successfully implemented. The need to reform the debt brake also shows that structural changes in economic policy are essential in the long term.