Economic stimulus package - room for speculation

Good morning,

to help the 'economy' 'get back on its feet', Scholz has promised various financial aids. True to the title of the topic, I would like to ask you what you expect from it.

Will there be anything for homeowners, or will we soon only be paying the immediate aid for dentists through higher daycare fees?

I expect little, instead a promotion of 'throwaway' consumption, cars, pub vouchers, or Sky subscriptions.

Your opinions?

The construction industry has not suffered as much, so there will be little to come.

I only expect one thing from the government at first, a new scrappage bonus to quickly sell new combustion engines. It helps the entire car and supplier industry.

The economic stimulus package already exists - [Baukindergeld] and that was controversial enough. I don’t believe the construction industry is being supported; it is still doing well enough.

I don't see anything for construction either. There is already enough and Corona had little impact on construction. Craftsmen were allowed to continue working. Maybe existing subsidies will be increased, although the KfW programs were massively improved only in 2020. Baukindergeld will end in my opinion. It was nonsense anyway and now that 100 billion € less tax revenue per year is expected, hopefully such stupidity will be dropped.

I don't believe that building construction is being funded. Possibly civil engineering. I am very divided about the automotive industry. A lot depends on it. Just all the suppliers and their suppliers. The workers on short-time work are still doing well compared to all the small suppliers. This is quite broadly encouraged.

Much will probably depend on how quickly we reach a new normal and whether it can be maintained.

Is there already a date set for when the Baukindgeld will end? We want to start building at the earliest next year. I hope Baukindgeld will still be available then

The industry is not doing poorly because it's doing well, but because the lobby is weak or non-existent. The car manufacturers are not doing that badly either. They have plenty of reserves. And just because they are doing worse for one year and not making double-digit billion profits, it shouldn't automatically mean we should throw tax revenues out the window (scrappage, environmental, whatever bonus). They should have enough guts to say: "We have made a lot of mistakes recently and in difficult times we just have to tighten our belts. That means: no bonuses, no dividends, and no annual bonuses for all employees. If they finish a year negatively, they won't close the company right away... VW employees are used to high salaries, so one year without an annual bonus has to be accepted...