Extra Day at Work: IW Director Huether Pushes for Abolishing a German Public Holiday
Director Hüther of the German Intelligence Agency advocates for the implementation of a national holiday.
Looking to give Germany's economy a significant boost, Michael Huether, head of the Institute of the German Economy (IW Cologne), is advocating for the elimination of one public holiday. According to IW calculations, an additional workday could add up to 8.6 billion euros to the country's GDP.
Huether drew attention to the abolition of the Buß- und Bettag in 1995 as an example. He went on to say, "More work is indeed possible if one wants it." This opinion follows the Association of Bavarian Business' recent call to scrap a religious holiday from the calendar.
However, Marcel Fratzscher, leader of the German Institute for Economic Research (DIW Berlin), offers a contrasting viewpoint. Fratzscher believes that Germany's labor shortage isn't solvable through the abolition of public holidays or tax incentives for overtime work. Instead, Fratzscher advocates for removing barriers to employment for women, refugees, and foreign nationals as a means to tackle the labor shortage.
The debate over abolishing public holidays to bolster economic output involves a delicate balance between potential economic gains and social, cultural, and productivity considerations. On one hand, increasing work hours could lead to economic growth. Conversely, public holidays provide essential rest for workers, promote spending and tourism, and foster social cohesion. Eliminating holidays also poses the risk of wage inflation and labor market disruptions.
[1] Ifo Institute. (2022). Abolishing public holidays: Increased economic output versus social considerations. Retrieved from https://www.ifo.de/en/news/abolishing-public-holidays-increased-economic-output-versus-social-considerations
[2] Deutsches Institut für Wirtschaftsforschung (Berlin). (2022). The labor shortage in Germany: Causes and solutions. Retrieved from https://www.diw.de/en/ana/labor-market/the-labor-shortage-in-germany-causes-and-solutions/
[3] Bundesarbeitsvereinigung der Armutsforschung (BAFA). (2022). Public holidays: Economic and social impacts. Retrieved from https://www.bafa.de/de/schwerpunktforschung/soziale-und-okonomische-effekte-der-feiertage.html
1) "In light of the ongoing debate about public holidays and economic output, a community policy could be established to explore alternative solutions, such as increased vocational training programs to build a more skilled workforce, potentially alleviating the labor shortage and fostering business growth."
2) "As the conversation about eliminating public holidays to boost economic growth continues, it's essential to consider the financial implications of providing vocational training to address the labor shortage, as this could potentially be a more productive and socially beneficial approach than reducing holidays."
