Based on a LinkedIn post originally published on 7 April 2026 Over the past decade, German households have faced several reasons to become more cautious: the disruption of the pandemic; a sharp rise in consumer prices; higher energy costs; two consecutive years of economic contraction; weak investment; and uncertainty around industry, trade and employment. Living in Berlin, I have also observed caution in everyday conversations. People frequently discuss costs, future security and the need to preserve a financial buffer. It is tempting to connect these observations to a simple narrative: households are spending less, saving more and gradually freezing the economy through fear. That hypothesis deserves examination—but it should not be presented as established fact without separating several different economic measures. Higher deposits do not automatically prove fear, and higher nominal consumption does not automatically prove greater purchasing power. Interpretation depends on definitio...