Supply Side Policies in Germany
1. Corporate tax cut: In Germany a corporate tax cut was proposed following tax cuts in other countries such as the US and Britain. German minister Altmaier says that the tax cut is necessary to protect workers, and encourage innovation. The money for the tax cut would be made up using about half of the money gained from the increase in tax revenues. The argument for this tax cut is that it would help corporations and workers. The argument against would be that it would take too much money out of tax revenues for the government
“German Minister Looks to Tax Cuts as Economy Contracts.” Reuters, Thomson Reuters, 17 Nov. 2018, uk.reuters.com/article/uk-germany-economy/german-minister-looks-to-tax-cuts-as-economy-contracts-idUKKCN1NM0QO.
2. Increase in Education Investment: Over the pat few years Germany has been increasing its spending on education more and more each year. In 2017, they increased their investment by 3.5% more than the previous year. Germany is most likely doing this because in previous years, they were spending far less than the European average, which was less than 10% of their GDP. Some downsides to this increase in spending in education is that there is less money going into other areas of Germany's economy.
“Germany to Invest More and More in Public Education.” Study in Germany for Free, Studying in Germany, 27 Sept. 2018, www.studying-in-germany.org/germany-to-invest-more-and-more-in-public-education/.
3. Increased infrastructure spending in Germany: Germany recently passed a new budget for 2020 that includes a 1.7% increase in the countries spending in areas such as infrastructure. In fact, this new investment in infrastructure could be up to 40 billion euros. This budget was passed in hopes of helping their economy, which has recently started to slow down. in order for the country to not go into debt in their new budget, it relies on the country cutting cost in some other areas.
“German Minister Looks to Tax Cuts as Economy Contracts.” Reuters, Thomson Reuters, 17 Nov. 2018, uk.reuters.com/article/uk-germany-economy/german-minister-looks-to-tax-cuts-as-economy-contracts-idUKKCN1NM0QO.
2. Increase in Education Investment: Over the pat few years Germany has been increasing its spending on education more and more each year. In 2017, they increased their investment by 3.5% more than the previous year. Germany is most likely doing this because in previous years, they were spending far less than the European average, which was less than 10% of their GDP. Some downsides to this increase in spending in education is that there is less money going into other areas of Germany's economy.
“Germany to Invest More and More in Public Education.” Study in Germany for Free, Studying in Germany, 27 Sept. 2018, www.studying-in-germany.org/germany-to-invest-more-and-more-in-public-education/.
3. Increased infrastructure spending in Germany: Germany recently passed a new budget for 2020 that includes a 1.7% increase in the countries spending in areas such as infrastructure. In fact, this new investment in infrastructure could be up to 40 billion euros. This budget was passed in hopes of helping their economy, which has recently started to slow down. in order for the country to not go into debt in their new budget, it relies on the country cutting cost in some other areas.
Nienaber, Michael. “UPDATE 1-German Cabinet Approves Spending Increase without New Debt.” Reuters, Thomson Reuters, 20 Mar. 2019, www.reuters.com/article/germany-budget/update-1-german-cabinet-approves-spending-increase-without-new-debt-idUSL8N2174QO.
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