Economist Göttert Urges Focus on Surpluses in Economic Agenda

According to economist Göttert, achieving surpluses is necessary because the next crisis is bound to come and Austria’s mountain of debt would have to be actively reduced. This means that the government needs to spend less than it earns in order to reduce the debt. In related news, the head of the Federal Reserve has stated that further rate hikes will be needed before the end of the year.

Not achieving surpluses can have both positive and negative consequences. On the positive side, it means that the government is spending more than it earns, which can lead to higher levels of investment and revenue in the economy.

However, on the negative side, if the government is not achieving surpluses, it can lead to a mountain of debt that can become unsustainable. This can lead to a decline in investment revenue and higher taxation. If the government decides to use the surplus to reduce the debt burden, it may lead to cuts in public services such as welfare, defense, education, policing, or healthcare, among others. This can lead to a decline in the standard of living and fewer resources for schools, pay caps on public workers, and other negative effects.

Additionally, having a surplus can hurt a business financially, as the cost of creating the product and carrying the inventory is high. Because products lose value over time, keeping a surplus of inventory will have a negative impact on a business’s cash flow and profit.

Leave a Reply

Your email address will not be published. Required fields are marked *