Germany GFC

Question 1

After the crisis what % of corporate tax cuts were made to stimulate the economy?

what taxes were also cut?

Answer 1

8.9% cuts were made

Payroll taxes

Question 2

what is the impact of cutting taxes?

Answer 2

Debt increases

Question 3

what was the 2010 level of public debt?

Answer 3

83.2% of GDP

Question 4

what was the employment policy that helped to keep employment rates up?

Answer 4

• Kurzarbeit, a federal subsidy to pay 80% of an employees wage if their hours were reduced which keeps employment high
• companies are encouraged to retain their trained employees so that production can recover faster if demand increases

Question 5

the national debt was still increased significantly why though?

Answer 5

Because of large bailouts and stimulus efforts

e. g. 50 billion euro loan
e. g. banger bonus to stimulate the automotive industry
e. g. one off 100 euro child bonus

Question 6

what was the percentage increase for GDP per capita between 2008 and 2016 ?

Answer 6

26.5%

Question 7

in comparison to the US and UK with spending?

Answer 7

spending was less than the US or UK , austerity therefore was not quite so harsh because it could be more long term and strategically planned, more confidence in stimulus investment

Question 8

what is the current rate of unemployment?

Answer 8

4.3%