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> but keeping the scheme means productivity won't recover as people able to work productively are sat at home doing nothing. Productivity will recover when bu
by nicholassmith 6y ago
> but keeping the scheme means productivity won't recover as people able to work productively are sat at home doing nothing.
Productivity will recover when businesses can use resources productively. It's either keep the scheme running until quarantine measures are reduced enough to allow businesses to start ramping back up and productivity increases again, or remove the scheme and push people to unemployment which is worse for productivity. If the government is daft enough to stop the scheme before the quarantine measures are reduced we're in for a shit-show of a decade.
- barbegal 6y agoThis depends on which is worse for productivity: unemployment or furlough. I think in some cases furlough is worse for productivity as workers that could be working for another employer and have in-demand skills are sitting idle. In a free-market devoid of minimum wages and government packages, wages would be going down massively but fewer people would be doing nothing.