Economy & Politics

Exclusive Jens Ehrhardt: “If we save now, everything will work out”

Jens EhrhardtThomas Dashuber / xxpool

Only debts help the national economies through the Corona crisis. The governments are in demand, said Jens Ehrhardt in an interview with Personal-Financial.com (read the full interview in issue 01/21). You would have to invest to get the economy going again. “In my opinion it would be completely wrong to pay attention to balance sheet balancing again, to reduce expenses and to increase taxes”, said the founder and head of asset management DJE Personal-Financial.com. Saving now would be a greater danger than the debt burden. Mass unemployment and a major recession could result.

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The central banks could not contribute much more to the crisis management than they would have already done during the year. Ehrhardt currently even considers the market to be oversupplied with liquidity. “I think another bond purchase program would fizzle out.”

Ehrhardt sees some catching up to do, especially in Europe and Germany. Both debt discipline and the strong euro have slowed the economy for decades. That takes revenge in the crisis: “That is why the companies could not put on any bacon in terms of profit and were weakened into the Corona crisis,” said Ehrhardt. In the USA, where a deficit of five percent of the gross domestic product was already generated last year and where incentives in the form of tax breaks were created, the bottom line is that companies are more robustly positioned.

As a result, European countries in particular would have to help companies affected by the effects of the virus crisis earlier, if necessary even through a stake, as happened at Lufthansa. This distorts the free market in the long run. “Since every crisis gives greater weight to state control, we are increasingly turning off the market economy,” warns Ehrhardt. In order to solve the vicious circle and at the same time to prevent a debt crisis, Ehrhardt suggests canceling old debts in order to save a minimum of market economy.

Jens Ehrhardt is considered one of the most experienced German financial experts. The 78-year-old founded the asset management company DJE Personal-Financial.com AG in 1974, which today is the third largest asset manager in Germany with 150 employees and 13 billion euros in assets under management.


Read the full interview in Personal-Financial.com 12/2020, which will be released on November 19th. interested in Personal-Financial.com? Here is the Subscription shopwhere you can order the print version. Our digital edition is available at iTunes and GooglePlay


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