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by longtermd 2240 days ago
Nope. Because they have already paid all of this in taxes. It means, that the 10 bn won't get 'invested' by the government in another project, e.g., welfare benefits, infrastructure, health, or education. Alternatively, it means: nothing of all of those, but inflation will rise an additional 0.0001% (if the funding source is printing money vs. using tax payer money)
4 comments

There is no direct link between printing money and inflation. But 0.0001% seems too optimistc.

For example the EZB has about 5 Trillion Euros out. 10B more would increase the amount of EZB money by 0.025%.

> There is no direct link between printing money and inflation

what....

Academically, there is a link, but it has not been born out in recent times by central bank policy and the resulting economic observations.

https://www.frbsf.org/economic-research/publications/economi...

Airline is the infrastructure tho, cheap air travel is available throughout EU. If you remove that, economy will take major hit. There is hardly any reading block with cooperation like EU. You fly from France to Italy and work with people there then you fly to Switzerland and demonstrate your product their and then you deal with marketing agency in UK to market your products at global level. It becomes inefficient without cheap air travel.
That sounds like an ad for some lifestyle product, not reality. Frequent in-person meetings aren't that important to the economy. It's cheap, quick and simple transport of goods throughout Europe that is important, not some executive traveling to four countries in an afternoon.
Lufthansa is never close to cheap flights...
Sure the flights under the Lufthansa brand are premium. But they do have other brands like Germanwings which are more affordable (though barely I will admit).
Yes, quite the contrary. It's one of maybe 10 five stars airlines. It's an elite airline.
I was under impression that executive class adds most value in a company which might be the target market of this airline company.

It seems I've been proven wrong already.

> Nope. Because they have already paid all of this in taxes. It means, that the 10 bn won't get 'invested' by the government in another project, e.g., welfare benefits, infrastructure, health, or education.

Knowing the German government, I wouldn't be worried about welfare and healthcare (they're too important to get the votes).

But you're right about infrastructure and education. You can throw defence and internal security with that.

The bailouts that are happening now will increase the state debts, so no, they did not pay all of this in taxes already.