Thursday, April 1st, 2021
An interview with historian Tooze
“Germany can buy vaccine for everyone”
The British economic historian Adam Tooze praises the trillion aid in the US and predicts difficult months for Europe’s economy. He has a radical proposal for Germany.
The Americans calculate in trillions: The first aid package from Joe Biden was 1.9 trillion, now the US president wants to invest another 2.25 trillion dollars in infrastructure and climate protection. “These are aid packages of absolutely historic proportions. We have never seen anything like it in peacetime, it is bigger than the New Deal of the 1930s,” said the British economic historian Adam Tooz on the podcast “Zero Hour”.
The paradoxical consequence of the crisis in the USA was that, because of the support from the US government, disposable incomes for many Americans, especially those from the lower classes, had risen.
The billions in aid are “a risk, a deliberate attempt on the part of the Democrats to let the economy run hot. They really want to suck the job market empty,” said Tooze, who teaches at Columbia University in New York and a specialist in younger Germans History is.
He described the growth prospects for the USA as “astonishingly rosy”, for Europe he is more skeptical. “If the vaccination campaign does not start quickly, then you will have to look in the dark for 2021. Not like last year, but you cannot speak of a full recovery.” The EU also achieved something historic with the 750 billion package. But many countries, especially in the south, would still be slow to recover.
Tooze suggests about vaccine procurement: “It would have been worthwhile for Germany to spend a few hundred billion euros on the entire global vaccination campaign.” Because no country benefits from a global economy that is without a pandemic – and the German state continues to get money for free on the financial markets. “In terms of status, you would literally be a world saver. For a few hundred billion euros.”
Hear all of the details of Adam Tooze’s analysis of this idea in the new episode of “The Zero Hour” as well as a pointed look at the German debt brake and what he thinks of the Greens’ 500 billion climate program.
You can find all episodes directly at Audio Now, Apple or Spotify or via Google.