"Break the day off" - IW chief Huether suggests scrapping a national holiday for German economy boost
Bureau Director Hüther advocates for the implementation of a national break
Michael Huether, the director of the Institute of the German Economy (IW Cologne), has suggested reducing the number of public holidays in Germany, arguing that it could significantly enhance economic performance in the short term. Speaking to the Funke media group's publications, he contended, "Ditching one holiday would be a powerful way to boost Germany's economy." Huether's statement was made in response to a call from the Association of Bavarian Businesses to scrap a religious holiday.
The Institute of the German Economy (IW Cologne) estimates that an additional workday could contribute up to 8.6 billion euros to Germany's GDP, according to their calculations. Huether cited the abolition of the Buß- und Bettag as a public holiday in 1995 as evidence that "more work is indeed achievable if one wants it."
Marcel Fratzscher, head of the German Institute for Economic Research (DIW Berlin), has a differing view on the issue. "Germany's labor shortage won't be solved by axing holidays or tax breaks for overtime," he told the Funke media group. Fratzscher believes that solving the labor shortage requires removing the numerous employment barriers for women, refugees, and foreign nationals.
"A significant increase in immigration and the elimination of employment barriers for women will help contain the labor shortage," Fratzscher asserted.
Mayhap, should Michael Huether delve into the topic of scrapping public holidays, he might argue for short-term GDP growth but caution about potential long-term ramifications, such as reduced worker productivity and increased burnout. On the other hand, Marcel Fratzscher might emphasize a balanced approach, expressing concern about the potential negative effects on labor markets and worker satisfaction, especially in sectors requiring high levels of skill and training.
In crafting policies, both economists might advocate for measures that improve worker satisfaction and productivity while addressing labor shortages in more holistic ways, such as implementing training programs and promoting better work-life balance initiatives. Ultimately, both viewpoints underscore the importance of considering a balanced approach that addresses economic growth and social welfare.
Community policy could address the potential negative effects on labor markets and worker satisfaction, especially in sectors requiring high levels of skill and training, by implementing vocational training programs to improve worker productivity and satisfaction. Finance, in this context, could be allocated towards subsidizing these training initiatives, promoting business growth and longevity while alleviating the labor shortage in a more holistic approach.
