The International Affairs Association

This week, Angela Merkel was sworn in for her second term as chancellor of Germany. There is a bit of hype around what she has set to accomplish over the next few years. She and her team claim that they will have tax cuts, more investment on education, health care reform, and a reform of business and income taxes.

… That sounds like a lot to handle.

And it is. Tax cuts sound great to stimulate an economy, but they also don’t help a budget deficit - something Germany is trying to reduce. People will undoubtedly also argue that most of the money obtained by families in this climate via tax cuts will not be spent. It will be saved, and the fiscal stimulus will be ineffective. Also, as the US is so clearly demonstrating right now, reforming health care is no joke. Add on investment one education (where is that money going to come from?), a bunch of other issues that inadvertently arise during any term, and one can see a rather jumbled picture.

It’s great that the German people approved of their Chancellor enough to re - elect her. But I can’t help but wonder whether getting excited too quickly will just set people up for disappointment. It’s what happened to President Obama after “change” ended up being naturally gradual, and not fast enough for some peoples’ tastes.