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Corona crisis: economist Bofinger proposes extension of ALG I

2020-10-23T09:24:58.185Z


The former economy Peter Bofinger proposed a flat-rate extension of the unemployment benefit by half a year. That could socially intercept a second lockdown.


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Economist Peter Bofinger (archive image)

Photo: Michael Kappeler / picture alliance / dpa

The state is currently spending huge sums of money in the corona crisis, thus keeping the economy stable.

Economist Peter Bofinger thinks that's right and demands even more.

In order to socially cushion the threat of renewed lockdown with the second wave of infections, he proposed a flat-rate extension of unemployment benefit I by half a year.

"If you lose your job now, it is very difficult to find a new one. As long as Corona is not under control, these people must not fall into Hartz IV right away," said Bofinger of the "Saarbrücker Zeitung".

If people have been employed subject to compulsory insurance for twelve months, they usually receive unemployment benefit for six months.

If citizens have worked for more than twelve months within the past five years, their entitlement can be extended to up to twelve months.

Because of the pandemic, the Federal Employment Agency has been paying unemployment benefits for a longer period of time: It pays unemployed unemployed three months longer if their entitlement ends between May 1 and December 31, 2020.

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According to Bofinger, the most important instrument in the corona crisis remains the improved short-time working allowance.

"It relieves the burden on companies and employees have comparatively little loss of income," he told the newspaper.

This will stabilize overall demand.

Between 2004 and 2019, Bofinger was a member of the Expert Council for the assessment of macroeconomic development.

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kim / AFP

Source: spiegel

All business articles on 2020-10-23

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