Incentive Package During Covid-19 And Why People Need That? Always new multibillions against the crisis? Anyone afraid of this should make sure that they only finance what helps against recession and permanent stagnation.
Since the government said that it still wanted to put in place an economic stimulus package against the looming deep recession, things have been a bit like the fair. (You remember, these are the places where people used to socialize.) Hardly a day goes by without someone saying that they now have something that belongs in the package. Because it is the only help, we need during this situation. Even tax gifts for the rich, an increase in women’s quotas and less minimum wage documentation are needed what you can find either way.
There is no point in taking measures that are good for someone but do not stop the recession. Especially when the debt panic is rampant, given all the trillions that are about to come in some packages. So what comes in the package should at least work optimally. And then it is all the more important to determine in advance what exactly is to be prevented. The more precise diagnosis is worthwhile.
Since the pandemic subsided, the business has started up again everywhere; only people remain cautious when it comes to spending money, also because some are still on short-time work or live with the fear that they will soon be unemployed. At the same time, companies and authorities have started to cut spending. And: In the companies, several projects are being postponed for the time being because nobody can say how long the crisis will last. In a nutshell: Above all, too little money is being spent.
All of this threatens to develop a dangerous downward dynamic in these weeks. If some cut expenses that others would otherwise get, others lack the money to stimulate the economy. And: The problem threatens to become a permanent drama – if there is no prospect of improvement. Besides, many who are currently being rescued with aid loans will need a large part of their money in the future to repay debts instead of investing or hiring people—next crisis.
If that is true, and the economic stimulus package is not just about giving gifts to any corporations per se, but above all about achieving one thing: that as many as possible spend more money relatively soon and then in the long term, whether private households, companies, employers or state institutions. And because this is not just about a short bridge, it is advisable to check every measure that makes economic sense to see whether it will help bring us to the next big crisis soon – for example, because it increases the likelihood of the next climate change. Or epidemic shocks increased, which in turn has the charm of turning the whole thing into a reconstruction program that the grandchildren can still benefit from.
With the efficiency check, some suggestions are dropped again. For example, the demand for a reduction in the bureaucracy – always great; only that suddenly nobody will spend a lot more just because there are a few fewer rules while it is in a recession and nobody is spending any money. Or the idea to cut the minimum wage now – only bean counters can demand something like that: one or the other company would have more money to spare, but the employee accordingly less.