Germany's Social Spending Soars to New Heights in 2024 Budget Allocation
289 sats \ 9 comments \ @TomK 28 Apr econ
Germany continues its trend of escalating social spending, shattering records despite maintaining a low unemployment rate. The 2024 budget outlines a staggering €175.7 billion allocation for the Federal Ministry of Labour and Social Affairs, representing a significant 37% of the total federal budget.
This marks a substantial increase from 2021, where the share stood at 29%. Over the span of just five years, social expenditure has surged by €32 billion, and when compared to 2012, the surge is even more remarkable, reaching approximately €50 billion.
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75 sats \ 6 replies \ @Satosora 28 Apr
During this time germany took in a lot of immigrants? They had to revamp their social affairs budgets?
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33 sats \ 5 replies \ @TomK OP 28 Apr
Another hot topic. They calculate at least 50 bio Euro per year to finance this directly. Costs for health care etc come seperate
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42 sats \ 4 replies \ @Satosora 28 Apr
Different budget?
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33 sats \ 3 replies \ @TomK OP 28 Apr
No. It's included. But there are a lot of budgets on local level that nearly can't be calculated, too.
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63 sats \ 2 replies \ @Satosora 28 Apr
I see. I dont see anything wrong with social budgets, its just that they really seem to be ballooning as of late.
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33 sats \ 1 reply \ @TomK OP 28 Apr
It's the inherent tendency of growing at the cost of econ growth and productivity that makes it so problematic
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42 sats \ 0 replies \ @Satosora 28 Apr
Right. As everything gets better, things need to be scaled up, but sometimes it is exponential instead of linear.
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42 sats \ 1 reply \ @halalmoney 28 Apr
Tom - there’s a good write up about the US situation here:
https://www.fxstreet.com/analysis/the-federal-reserves-345-trillion-problem-202404261906
Extract:
"When fiscal imbalances are large and fiscal credibility wanes, it may become increasingly harder for the monetary authority to stabilize inflation around its desired target. If the monetary authority increases rates in response to high inflation, the economy enters a recession, which increases the debt-to-GDP ratio. If the monetary tightening is not supported by the expectation of appropriate fiscal adjustments, the deterioration of fiscal imbalances leads to even higher inflationary pressure. As a result, a vicious circle of rising nominal interest rates, rising inflation, economic stagnation, and increasing debt would arise.”
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0 sats \ 0 replies \ @TomK OP 28 Apr
Thank You for the recommmendation and greets
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