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RE: LeoThread 2024-12-05 08:38

in LeoFinancelast month

Part 6/8:

The ongoing discourse also highlights another critical concern: the implications of the debt brake for investment. Advocates of a more lenient fiscal policy argue that government debt plays an essential role in broader economic growth. From this perspective, government borrowing is viewed not merely as a burden but as an asset owned by citizens that can fuel infrastructure and educational improvements, ultimately leading to a more prosperous economy.

The notion of a "Golden Rule" emerges as a potential compromise, proposing that governments may borrow only for investment purposes but need to raise taxes for redistributive actions. Such a framework could enable Germany to address its pressing infrastructure issues while balancing the need for responsible fiscal management.