Let's talk about the grind: IW Director Huether advocates for nixing a public holiday to rev up Germany's engine
Director Hüther advocates for a vacation break
Straight up, the director of the Institute for the German Economy (IW Cologne), Michael Huether, is throwing his hat in the ring for fewer days off in Germany. According to him, axing one public holiday could dang near double economic growth in the short term, stating in a chat with the Funke media group newspapers (y'know, the weekend editions).
Now, the IW calculations suggest that an extra workday could potentially skyrocket Germany's GDP by up to 8.6 billion euros, if you catch my drift.
Huether ain't shy about using the example of the Buß- und Bettag, which was taken off the public holidays list back in 1995. More work, or more work if you please, Huether tells us, implying that it's all about wanting it.
His response comes following a demand from the Association of Bavarian Economy this week, advocating for axing a religious holiday.
But, here's the catch: Marcel Fratzscher, the big boss of the German Institute for Economic Research (DIW Berlin), ain't having it. He reckons that Germany's labor shortage won't be solved through dumping public holidays or offering tax privileges for overtime in full-time work.
In Fratzscher's eyes, we gotta tackle the many barriers preventing women, refugees, and foreigners from working. Reducing these barriers, he says, is the real key to solving the labor shortage. He's adamant that increasing immigration and decreasing barriers for women are the way to narrow this gap.
Sources: ntv.de, AFP
Now, there's a whole debate going on about cutting public holidays to boost economic growth. Proponents argue that it could mean increased economic output, help Germany maintain an edge in the global market, and, well, make some extra dough.
However, public holidays are more than just work days. They give employees precious time to unwind, bond with family, and support local economies through tourism and spending. Plus, let's not forget about cultural and social traditions - those are pretty important, too.
At the end of the day, while dropping public holidays might have its benefits for the economy, it's important to weigh these advantages against the social and cultural impacts.
- Ifo Institute
- Institute for Labor Market and Occupational Research (IAB)
- European Working Conditions Survey (EWCS)
In the ongoing discussion regarding the impact of public holidays on economic growth, proponents like Michael Huether from IW Cologne propose adjustments in community policy such as eliminating a public holiday to potentially boost business finance and stimulate economic growth. On the other hand, some organizations, like the German Institute for Economic Research (DIW Berlin), advocate for a different approach, focusing on vocational training and reducing barriers for women, refugees, and foreigners to address Germany's labor shortage and achieve a more culturally sensitive economic balance.
