Heiner Flassbeck, Friederike Spiecker: Fighting recession is hopeless without an analysis of its causes

The months of talk about a “winter recession”, a “technical” or “mild” recession in Germany, which will be overcome in the course of the year, has come to an end. The indicators are now too overwhelming and the criticism from the employers’ camp too loud for those responsible for economic policy and the media to gloss over the downward trend of the German economy .

The negative development had been apparent for more than half a year, as can be read here in an article from early December 2022. The recession is due to a lack of demand: the mass of the population – this applies to Germany as well as to half the world – has less purchasing power this year than last year; real incomes have fallen because prices for energy and many foodstuffs have risen sharply.

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