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Denmark’s Idea Could Help the World Avoid a Great Depression

• dmode 7y ago
  This is an extraordinarily bold step and I agree in theory. But the risk is extremely high and I am curious what the downsides will look like for an approach like this
  • KSteffensen 7y ago
    From your point of view what are the risks here? Denmark's current debt level is at around 35% of GDP, so we should be able to debt finance this for a while and still have money for further stimulus packages to start things up once corona has passed
• lioeters 7y ago
  The idea is to "freeze the economy" by massive government spending, covering various costs of private companies and the people. > the Danish government told private companies hit by the effects of the pandemic that it would pay 75 percent of their employees’ salaries to avoid mass layoffs > The plan could require the government to spend as much as 13 percent of the national economy in three months. The state has agreed to take on 75 percent of workers’ salaries, up to $3,288 per month, for them to stay home and not work, while still being employed. In addition: - the state will guarantee 70 percent of new bank loans to companies - people on unemployment benefits will continue to receive it, without the usual requirements, and even past the 2-year limit - the state agreed to compensate companies for their fixed expenses, like rent and contract obligations, depending on their level of income loss - the spring payment of taxes for companies have been postponed until autumn - all public employees will keep their salaries when sent home
  • soegaard 7y ago
    To be clear. The public employees are working from home.