Pump Up the Profits: IW Director Huether Suggests Fewer Holidays for a Boost in German Economy
Increase in Public Holidays Criticized by IW Director Hüther to Boost Economic Productivity
Hop on the productivity train! Michael Huether, director of the Institute of the German Economy (IW Cologne), is urging for a reduction in public holidays in Germany. "Nix one holiday, watch the economic performance soar!" Huether exclaimed to Funke media group newspapers. According to IW calculations, an extra workday could potentially bolster Germany's GDP by a whopping 8.6 billion euros.
Huether references the 1995 abolition of the Buß- und Bettag as a public holiday as an example, declaring, "There's always more work if you've got the fire!" He responds to the Association of Bavarian Business' recent call to scrap a religious holiday.
However, Marcel Fratzscher, head of the German Institute for Economic Research (DIW Berlin), argues against Huether's proposal. "Slashing holidays ain't gonna tackle the labor shortage," Fratzscher told Funke media group newspapers. According to Fratzscher, the solution lies in the removal of employments barriers for women, refugees, and foreign workers. "Immigration and the tearing down of employment barriers for women are the keys to easing the labor shortage," the economist declared.
Sources: ntv.de, AFP
Inside Info:
While Michael Huether advocates for fewer public holidays to boost productivity, Marcel Fratzscher might counter with arguments stressing the importance of a healthy work-life balance for overall well-being and long-term productivity. Fratzscher might also point out that holidays support domestic tourism and local economies, which contribute positively to the national economy. On the flip side, reducing public holidays could negatively impact these aspects, potentially leading to decreased productivity and worker satisfaction in the long run. Unfortunately, specific details about Fratzscher's counterarguments on this topic are not publicly available. However, these arguments are commonly discussed in similar debates about public holidays and economic performance.
In adherence with Michael Huether's recommendations, the implementation of a reduced number of public holidays could potentially amplify Germany's economic growth, as estimated by the Institute of the German Economy (IW Cologne). On the contrary, Marcel Fratzscher from the German Institute for Economic Research (DIW Berlin) advocates for the removal of employment barriers for women, refugees, and foreign workers as a solution to addressing the labor shortage, rather than eliminating holidays.
