Price increases: Scholz prepares citizens for the long-term inflationary crisis – the economy

DGB chief Yasmin Fahimi said: “It’s about a 2023 perspective and it’s about doing everything now to prevent recession, stabilize locations, maintain value chains and secure jobs.”

Scholz emphasized that the first thing to do was to develop a common understanding. Consequently, Fahimi and Dulger found that inflation is not currently driven by wages. “Wages are not the engine of inflation these days, but people feel it,” says Dulger. Collective bargaining partners could absorb some inflation for workers. “This does not happen at the Chancellery,” emphasized Dulger. Similar warnings came from the trade unions from above.

“We are currently seeing drivers for inflation on the supply side: energy costs, a shortage of raw materials, a shortage of intermediate products due to disrupted supply chains,” said Dulger. Energy taxes and grid charges can be good levers to control rising energy prices.

Various accents

Fahimi praised the effects of previous aid packages worth EUR 30 billion. According to their information, the average worker’s household is dismissed by 1,000 euros. “Nevertheless, the burden on private households goes well beyond that.” Fahimi called in advance for an energy price cap.

Dulger stressed that by lowering taxes and social security contributions, politicians can provide citizens “more net than gross”. The employers also proposed to eliminate the so-called cold progression in taxes. The task of employers is to maintain the stability of the economy and the labor market. “That in itself is … a Herculean task,” said Dulger. “At the moment, we don’t know which fire we should put out first.”

It should be

Scholz spoke of a “good start” and confirmed that such meetings should now be held at regular intervals. The trodden paths had to be abandoned. I need a “community spirit”. According to a government spokesman, there should be results in the fall.

One-time payment and redistribution

Unions were not very enthusiastic when information emerged that Scholz wanted to ease the burden on workers with a one-time payment. Firms should pay duty free. Unions should respect wage restrictions. But Scholz rejected the reports over the weekend.

Greens and community organizations insisted on helping the needy and low-income people. Your vice-chairman of the parliamentary group Andreas Audretsch has made a contribution especially for the wealthy. “Everyone now has to ask themselves how they can contribute,” said Audretsch of the German Press Agency. “This is especially true of those who have a lot, the richest.”

FDP against higher spending and higher taxes

Finance Minister Christian Lindner rejects more debt and higher taxes. “It would be a toxic and impoverished program,” said the head of the FDP of the German news agency. Strong increases in government spending are also out of the question for him. “The main contribution of the state is to avoid additional price pressures through sound finances.”

The state must fight the causes of inflation. “At the same time, we should reduce the subsidies that drive prices and do everything we can to make energy cheaper.”

More suggestions

The money for the social climate proposed by Labor Minister Hubertus Heil (SPD) should return to the table in concerted action. According to the proposal, climate money should be paid once a year – for single people earning less than EUR 4,000 gross a month, and for married people with less than EUR 8,000. The social wing of the CDU called for a reduction in VAT on basic food products.

The new leaders of the Left Party, Janine Wissler and Martin Schirdewan, demanded a reduction in the price of staple food in the “Süddeutsche Zeitung”. The Federal Association of Small and Medium-sized Enterprises is not satisfied with joint action. Managing Director Markus Jerger told RTL / ntv broadcasters that a social summit was needed that also brought together logisticians, manufacturers and mid-sized companies.

Leave a Comment