Denmark has led the world in its economic response to the coronavirus: Freeze the economy and pay ppl and firms to hold their breath.
I spoke to Denmark's Employment Minister @PHummelgaard about the plan, how it works, and how Denmark acted so fast
theatlantic.com/ideas/archive/…
I spoke to Denmark's Employment Minister @PHummelgaard about the plan, how it works, and how Denmark acted so fast
theatlantic.com/ideas/archive/…
I would summarize like this:
Denmark is essentially building a second unemployment benefit program, one which is paid through employers to workers who (a) stay home and (b) stay with the company.
It's jobless benefits, for people with jobs. It's furlough financing.
Denmark is essentially building a second unemployment benefit program, one which is paid through employers to workers who (a) stay home and (b) stay with the company.
It's jobless benefits, for people with jobs. It's furlough financing.
The virtues of this policy are obvious:
It helps people survive, reduces unemployment, preserves the "productive capacity" of both firms and workers, and sets the country up for a faster recovery ... IF they also quickly solve the health crisis.
It helps people survive, reduces unemployment, preserves the "productive capacity" of both firms and workers, and sets the country up for a faster recovery ... IF they also quickly solve the health crisis.
I also asked about the risks:
- Can Denmark afford to do this?
- Are you keeping workers from moving into more productive parts of the economy, like online delivery?
- This is a 3-month plan, but what if this isn't a 3-month crisis?
- Can Denmark afford to do this?
- Are you keeping workers from moving into more productive parts of the economy, like online delivery?
- This is a 3-month plan, but what if this isn't a 3-month crisis?
