The German chancellor has called for a welfare reform, putting him on course for a possible clash with the SPD.

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The worry is:

  • the german government prints 1bn euros and hands it out to the people
  • the people will spend 300m of it to buy furniture, cars, smartphones
  • that money goes to companies abroad, to billionaires abroad, and can't be "taxed back"

The solution is:

  • literally create import tariffs that make importing goods from other countries more expensive, so people are incentivized to spend money on domestically produced goods
  • now the money flows back to domestic billionaires,
  • where it can be "taxed back"
  • source
  • parent