Raffelhüschen 2

Last Saturday, Red Baron listened to Claudia Raffelhüschen's Bericht aus dem Deutschen Bundestag*. She sits in parliament for the Free Democrats and, as a studied economist, became a member of the Bundestag's budget and finance committees.
*A report from the German parliament

The name Raffelhüschen should ring a bell for my faithful readers. Her husband, Bernd Raffelhüschen, is an economist and Professor of Finance at the Albert Ludwigs University of Freiburg. About one year ago, he gave a talk at the Museumsgesellschaft on public debt, inflation, and low-interest rates: An explosive charge for the economy and social affairs. He showed many graphs on demographic development, with projections into the future.

Claudia at the rostrum of the Teutonia fraternity house 

Claudia's report was more down-to-earth and entertaining. One topic was Germany being dogged by bureaucracy. Here is an example:

 
Not only in Germany, the birth rate is a political issue given an overaged population. In the past, there were many financial pots out of which parents with children were supported. The introduction of a single parental allowance (Elterngeld) was celebrated as a breakthrough, but it led to a demand for 3,200 additional administrative jobs. A reduction in bureaucracy looks different.

Last Saturday, during Claudia's talk, the three leaders* of the traffic light coalition were still working to plug a hole in the federal budget for 2024. This hole of €17 billion had been opened by a decision of our Supreme Court. Red Baron reported.

*The chancellor and his ministers of the economy and finance

It was exceptional that no information was leaked from the small circle of the chancellor and his two top ministers. So Claudia, too, ignored what was being discussed behind closed doors at the chancellery. In the meantime, habeamus budget for 2024 without touching the Schuldenbremse (debt brake).

I have never understood why the Free Democrats, with their general secretary, insist on this brake, when bragging that we are beginning to see the consolidation of Germany's national finances.

Germany, the Staatsschuldenquotenweltmeister (World leader in government debt ratios)©ZDF

When we compare the national debt ratios of the G7 countries, Germany has by far the lowest ratio. So why should we limit our debts if other countries don't?

I asked Claudia whether it wouldn't be better to incur debt and earmark the additional funds for targeted investments in the future.

While the US spends most of the money on the military, they have started the EPA Greening America's Communities Program, financed by an ever-increasing federal deficit, although an investment in the future.

So, why can't Germany invest borrowed money in the repair of its dilapidated infrastructure, e.g., railroad and bridges, in the rapid expansion of renewable energies, and the realization of power lines from the windy shores in the north to industries in Bavaria and Baden-Württemberg? Our grandchildren will surely profit from those investments.

In addition, the latest poor results in the Programme for International Student Assessment (PISA) have shown that Germany, a country with limited natural resources, needs to invest much more in educating its children. In this context, I don't accept Claudia Raffelhüschen's objection that schooling is a matter for the federal states.

We need a national effort that requires significant funding to lay the foundations for a sustainable future for our grandchildren.

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