Are you riding the Wohlstandswelle yet?
If you believe everything you read, and I would never recommend doing this, of course, Germany suddenly finds itself in the wonderful world of economic upswing. Signs of this Aufschwung are being reported everywhere and it appears at times that the country has been “afflicted” by a giant and completely unexpected Wohlstanswelle (wave of prosperity).
Provided, of course, the Germans finally begin consuming.
And that’s the crux of the biscuit. That is one reason why we are now hearing political parties and unions, this time backed by a wide variety of economic experts, already making clear demands for higher wage increases in the coming year. “Private consumption is the heart of the economy,” says Peter Bofinger of the Sachverständigenrat. “If it doesn’t start to beat hard and steady soon, then it doesn’t look good for further recovery.”
In other words, the moment of Wahrheit (truth) has finally come for the German consumer. Christmas spending season has now begun and we will all shortly see just how geil Geiz ist. Now that all the lights are finally green and pointing to go we will finally find out if the German consumer is really as stingy and penny-pinching as he and she say they are!
So there we have it. If you believe everything you read, and I would never recommend doing this, of course, the German consumer will decide if a new Wirtschaftswunder will gain a foothold in Germany again or not. Stay tuned. I certainly will. The numbers are sure to be out before the end of the month and I can hardly wait.
And Merry Christmas, or Bah, Humbug! Whatever you prefer or comes first, I mean.
Provided, of course, the Germans finally begin consuming.
And that’s the crux of the biscuit. That is one reason why we are now hearing political parties and unions, this time backed by a wide variety of economic experts, already making clear demands for higher wage increases in the coming year. “Private consumption is the heart of the economy,” says Peter Bofinger of the Sachverständigenrat. “If it doesn’t start to beat hard and steady soon, then it doesn’t look good for further recovery.”
In other words, the moment of Wahrheit (truth) has finally come for the German consumer. Christmas spending season has now begun and we will all shortly see just how geil Geiz ist. Now that all the lights are finally green and pointing to go we will finally find out if the German consumer is really as stingy and penny-pinching as he and she say they are!
So there we have it. If you believe everything you read, and I would never recommend doing this, of course, the German consumer will decide if a new Wirtschaftswunder will gain a foothold in Germany again or not. Stay tuned. I certainly will. The numbers are sure to be out before the end of the month and I can hardly wait.
And Merry Christmas, or Bah, Humbug! Whatever you prefer or comes first, I mean.
Research analysts have already said that there are signs that the impact of the sales tax rise might not be as dramatic as initially thought (i.e. consumer spending will simply remain on the depressing level it stands on since 2000). (Comment this)
I still predict a slowdown. (Comment this)