Save up? Why you should celebrate Christmas without restraint

What are you giving away for Christmas? Will it be less this year? If so, then unfortunately you’re trending. the fiberglass expects retail sales of 17.9 billion euros in the Christmas business in Germany this year. That is a decrease of around eight percent compared to 2021. But why?

In March 2021 quoted the business week Nor does the Federal Statistical Office say that Germans saved almost 6 percent more money in 2020 than in 2019. In recent years, we have spent 100 billion euros less than before the lockdown by not going on travel, culture or going to restaurants. Despite the pandemic, the Germans are richer than ever.

increase in money supply

This means that the money supply M1, M2 and M3 have continued to rise steadily in recent years. M1, these are funds that are in current accounts and can be used practically every day. That includes the money that is in circulation.

At the end of August 2022, the money supply M1 in the euro zone amounted to around 11.7 trillion euros. This corresponds to an increase of almost 4 percent compared to the end of the previous year. According to stats the M1 money supply in Germany at the end of August 2022 was around 2.85 trillion euros.

The amount of money in short-term savings deposits and in long-term funds or money market paper has also continued to rise in recent years.

Christmas: Reasons for and against saving

So I’m wondering what happened to the money? Yes, housing is becoming more expensive, energy is becoming more expensive, mobility is becoming more expensive. But living according to the motto: “We have to save, no matter what the cost” is not the solution. Because the costs are high.

We’ve seen what happens when we stop spending money. How many retailers did not survive the Corona phase or only just survived it. How many jobs the pandemic has killed because we didn’t spend. That mustn’t happen again.

Conclusion: save at Christmas

I would argue that if you can, go to the shops this year and buy gifts and make your loved ones happy. Celebrate – we can!

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