Price increases – citizens are relieved – politics

Because of the high prices for heating, driving and in the supermarket, the federal government has launched several relief packages – part of which was approved in the Bundestag on Thursday. Specifically, it is about measures worth billions that are intended to ensure that citizens have to pay less taxes. Finance Minister Christian Lindner (FDP) had already argued during the first debate in Parliament that the “perceived inflation” should be dampened by the relief. Every citizen should feel that the state relieves him. This is important to prevent a dangerous wage-price spiral that could lead the entire economy into stagflation, i.e. a mix of rising prices, economic stagnation and unemployment. The package does not go far enough for the opposition in view of the high inflation. The Union criticizes that the basic tax-free allowance will not be raised high enough and that the money will reach the citizens far too late.

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