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by ttul
2275 days ago
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Yes. Kurzarbeit means the company keeps people on its payroll but doesn't give them full hours. The government tops their pay back up to 100% but the company is saved from carrying the full load. The company keeps its employees and all the valuable training they received, allowing it to get back to full speed once the downturn is over. A free market is very inept at solving this problem because no single company is going to make the long term investment required to foresee future recessions and implement a war chest sufficient to offer Kurzarbeit. But the state can think ahead and generate a public good from this kind of program. |
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Not quite, I think the government makes up for 60% or so of the income difference, but I'll have to look it up later myself.