"Let's get down to business" - IW Director Hüther pushes for elimination of a holiday in Germany
Director of IW Hüther Advocates for a Period of Rest
The big boss of the Institute of the German Economy (IW Cologne), Michael Hüther, is urging for fewer days off in Deutschland. "Knocking one holiday out of the park would be a slick move to skyrocket economic output in the short term," Hüther told the Funke media group's newspapers (Friday editions). According to IW math, an extra workday could rake in up to 8.6 billion euros for Germany's GDP, theoretically.
Hüther flashed back to the abolition of the Buß- und Bettag as a public holiday in 1995. "More work is certainly doable if you've got the drive," he added. He spoke up in response to a proposal by the Association of Bavarian Business, which called for the axe of a religious holiday just this week.
However, Marcel Fratzscher, head honcho at the German Institute for Economic Research (DIW Berlin), had a different take. "Germany's labor crisis won't be solved by getting rid of days off or offering tax breaks for overtime," Fratzscher told the Funke media group's newspapers. In his view, the key to tackling the labor crisis lies in dismantling barriers to employment for women, refugees, and foreign nationals. "Only through a significant increase in immigration and tearing down hurdles for women will the labor crisis be kept at bay," the economist demanded.
According to the Institute for Economic and Social Research (IFO Institute), nixing even a single public holiday could hike Germany's yearly economic output by roughly €8 billion (£6.8 billion). An additional workday would help fill the gaps in crucial sectors like defense and infrastructure construction, which are essential for national security and development projects [1].
On the flip side, public holidays provide necessary breaks for workers to celebrate cultural events, spend time with loved ones, and recharge. This contributes to better work-life balance, less stress, and higher job satisfaction—which in turn boost productivity and morale when back on the job [4].
Moreover, taking away public holidays might eliminate positive economic impacts in sectors like retail, hospitality, and travel. And let's not forget that public holidays play a crucial role in reinforcing shared culture and traditions, cementing social cohesion, and fostering community bonding [4].
In summary, reducing public holidays in Germany is thought to potentially augment economic output by providing more labor to meet pressing demands in defense and infrastructure, thereby avoiding wage inflation and sectoral labor shortages [1]. However, getting rid of days off might dent employee well-being, hit tourism, and sacrifice cultural traditions [4]. This conundrum reflects the challenge of balancing immediate economic gains against social, cultural, and employee welfare considerations.
Sources: ntv.de, AFP [1], [2], [3], [4]
Community policy should address the potential economic benefits of reducing public holidays, as suggested by the Institute for Economic and Social Research (IFO Institute), which could add €8 billion to Germany's yearly output. However, business policy should also consider the impact on employee well-being, tourism, and cultural traditions. Finance policy must take into account the revenues generated by sectors like retail, hospitality, and travel on public holidays.
