The Case for Scrapping a National Holiday: Economist Hüther's Controversial Idea
CEO advocates for abolishing a national holiday to boost economic productivity - Leader of IW advocates elimination of holiday for boosted economic growth
In a stirring call to action, notable economist Michael Hüther, the head of the Institute of the German Economy (IW), has proposed abolishing the Buß- and Bettag, a religious holiday observed in Germany. Hüther argues that this move would help boost overall economic performance by allowing for increased working hours.
Hüther's proposition is a reaction to a call from the Association of Bavarian Businesses, who advocated for the removal of religious holidays like the Buß- and Bettag. In Cologne, the debate surrounding this proposal has heated up.
However, not everyone shares Hüther's view. Marcel Fratzscher, the head of the German Institute for Economic Research (DIW), has expressed skepticism. According to Fratzscher, who spoke to the Funke media group newspapers, abolishing the Buß- and Bettag will not solve Germany's ongoing labor shortage. Instead, Fratzscher believes that removing many barriers to the employment of women, refugees, and foreign workers could be the key to addressing the labor shortage.
Fratzscher maintains that the social and psychological importance of the Buß- and Bettag as a day for reflection and social cohesion should not be overlooked. This holiday contributes to societal well-being and mental health, which indirectly support economic performance by fostering a healthier and more motivated workforce.
While Hüther sees the abolition of the Buß- and Bettag as a means to increase labor supply and economic output, Fratzscher cautions that the loss of a rest day could potentially reduce worker well-being, leading to long-term declines in productivity through increased stress and reduced motivation.
The debate over the Buß- and Bettag highlights the need to weigh the immediate economic gains against the broader social welfare impacts. In essence, both perspectives offer valuable insights into the complexities of labor market dynamics and the role of holidays in balancing economic efficiency and societal cohesion.
The debate over the Buß- und Bettag's abolition extends to the realm of community institutions, as economists like Michael Hüther and Marcel Fratzscher discuss its potential impact on vocational training. Hüether suggest that removing the holiday could provide more working hours for vocational training, while Fratzscher advocates for promoting employment of underrepresented groups to address Germany's labor shortage. The issue raises questions about the balance between finance and business interests and the social welfare supported by holidays, with Fratzscher emphasizing the holistic benefits to mental health and workforce productivity.
