How to avoid a Great Depression? Do like the Danes! To avoid mass layoffs, the Danish government covers 75% of the wages of workers affected by the pandemic = freezing the economy so that it can immediately bounce back once the shutdown is over 👇👇👇
Denmark's plan to save the economy: 1. Discourage layoffs: Offer to pay employers 75% of furloughed workers' wages. 2. Extend living-wage jobless benefits. 3. Guarantee 70% of new bank loans. 4. Compensate some firms for fixed expenses.
BRILLIANT idea out of Denmark! The govt has started paying 75% of people's salaries & is being hailed by economists everywhere! The UK has followed suit by paying 80% of salaries. This is something we should be considering strongly in Canada! #CovidCanada
Why I'm more optimistic today than a week ago: The world is awake. Here is a major Spanish economist hailing Denmark's plan—unthinkable a month ago—to bail out their whole economy: "I think that so many economists have never agreed so much on something"
If only there were some magical way to reduce layoffs, AND preserve the "employer-employee relationship," AND protect the productive capacity of workers and firms. (oh ya we could just copy denmark and the rest of northern europe)
WOW!!! Danish govt told private companies that it would pay 75 percent of their employees’ salaries to avoid mass layoffs... spend 13% of the national economy in 3 months. (roughly equivalent to a $2.5 trillion US stimulus over just 13 weeks). #COVID19
“The Danish government told private companies...that it would pay 75 percent of their employees’ salaries to avoid mass layoffs....That is roughly the equivalent of a $2.5 trillion stimulus in the United States spread out over just 13 weeks.”
Denmark is paying laid-off workers 75% of their salaries. That’s 13% of the tiny nation’s GDP. Danish prof reasons: “If you ruin people’s private lives and companies go bankrupt, it will take years to build this up again. So I think it’s a wise decision.”
Denmark will spend the US equivalent of $2.5 trillion stimulus over 13 weeks to save its economy. It will spend 13% of its national economy in the next 3 months.
I spoke to an economist in Denmark about their country's big idea to save the economy from a Great Depression. In short: Pay many, many, many people a living wage to do nothing.
This bold, and economic history making approach, from Denmark would cost ~$2.5 Trillion in the US and jumpstart the post #COVID19 recovery because firms don’t have to go through rehiring process, among other things.
Denmark is aiming to push out 13% of its GDP in the next 13 weeks to combat the downturn—equivalent to $2.5 trillion in the U.S. Economist Flemming Larsen blessedly translated a one-pager on Denmark's full relief package. Here it is.
A better way 👇 please share
Thanks to everybody who has read, shared, and responded to this piece. I'm scheduling a follow-up with Denmark's Employment Minister as soon as his schedule permits. What should I ask him?
I don’t know why “trillion” is being characterized by so many as “really big”. As a percentage of US GDP, and as an appropriate response to the amount of economic activity being affected, we must measure in trillions. Get over it and get on with the job!
Footnote: The Denmark policy has been widely misunderstood. Only *furloughed* workers in some circumstances get the 75% benefit. It's a good model! But not a 75% wage subsidy. cc
Denmark’s Idea Could Help Avoid a Great Depression - The Atlantic
Denmark’s Idea Could Help the World Avoid a Great Depression #coronadk #COVID19dk
It's a false choice, people
Denmark’s Idea Could Help Avoid a Great Depression - The Atlantic
Bailouts that focus first on relief for displaced workers is the way to go. Denmark govt providing 75% of compensation to all workers who lose their jobs—cost is expected to run over 10% of GDP.
imagine if we had spent the last 10 years building a robust social safety net rather than opening the coffers for the ultra-rich to loot
Denmark’s Idea Could Help Avoid a Great Depression - The Atlantic
Mientras aquí los ideólogos que ocupan el gobierno federal hablan de “neoliberalismo” -> "In weeks—even days—Denmark’s aggressive response could be a blueprint for how the world can avoid another Great Depression."
"In weeks—even days—Denmark’s aggressive response could be a blueprint for how the world can avoid another Great Depression." writes
“We have 10 parties in [Danish] Parliament. From the very left-wing to the really, really right-wing. & they all agree. There is nearly 100 percent consensus about [spending 10 percent of GDP on paying workers salaries so companies to fire them].” Amazing.
Denmark’s Idea Could Help the World Avoid a Great Depression Paying 75% of the salaries of private companies' employees.
I trust the Danish govt far more than our own. | "In weeks—even days—Denmark’s aggressive response could be a blueprint for how the world can avoid another Great Depression." writes
All countries: please consider this idea from Denmark 🇩🇰. Rather than do rounds of firing followed by rounds of hiring, which will delay the recovery, let’s throw the whole economy into a deep freezer, and when the virus winds down we can thaw it out.
Danish government is paying 75% of worker salaries to avoid layoffs. (1) Equivalent of US gov spending $2.5 trillion (2) Danes have budget surplus (3) 10 parties in Parliament, across whole political spectrum, decided this in days with 100% consensus.