Dresden (dpa / sn) – The Dresden economist Joachim Ragnitz does not believe in the rising cost of living of consumer relief according to the watering can principle. Rather, they should primarily benefit those who can no longer cope with higher costs without help, he said on Tuesday in Dresden. The measures would have to lead to a redistribution towards those who would suffer most from the cost increases. “It’s about relieving low earners with targeted transfers.”
The deputy head of the Dresden Ifo Institute believes it is wrong to relieve everyone today by taking on new debt and thus burden future generations. When it came to the tank discount, the government acted “almost populist”. The fuel discount is ultimately a redistribution towards those who drive a lot or drive large cars with high consumption. The 9-euro ticket also has no distribution effect. “It didn’t make sense,” Ragnitz said.
He was also cautious about the tax-free one-off payment suggested by Chancellor Olaf Scholz (SPD). That, too, is ultimately a distribution in favor of the current generation. Scholz had brought a one-time payment from employers into play. In return, the unions should waive part of the wage increases in collective bargaining rounds. The aim is to prevent the inflationary spiral from turning any further, it said. Employers and trade unions had expressed skepticism about the proposal and referred to collective bargaining autonomy.
