Question

In: Economics

Give one fact why Germany is better off after the pandemic

Give one fact why Germany is better off after the pandemic

Solutions

Expert Solution

German lawmakers and policy makers should comfortably turn their backs on at least three sets of successes in the war against the COVID-19 pandemic. So far as the human element is concerned, Germany's fatality rate has so far been low; economically, its citizens have been well insulated from the turmoil caused by the virus in many other countries; politically, its democratic institutions are still intact.

The key reason for this "German exception" lies in the medical preparedness of the country. As early as mid-January, German virologists had developed a virus test; by February, German labs had built up the requisite test kit stocks; the government had made an early commitment to testing and tracing; the country already had a high ICU capacity relative to its European rivals, which was further improved by new incentives.

Necessary locking-type steps to minimize the spread of the pandemic would create immediate economic costs for workers and families in all countries The German government's policy response on this front was swift and supportive. On 23 March, a comprehensive economic package of EUR 750 billion was announced. These included incentives for small businesses and freelancers, stability programs for big corporations and support measures for families.

The package was laudable not only in terms of its substance, but also in terms of its signaling effect: the government recognized the economic pain that its people would have had to suffer in the battle against the virus, and was willing – as a rare exception to even get into debt to aid. Since then, further steps of this kind have been introduced and successfully enforced.In fact, German democracy is intact, as are the civil liberties of the people. This government has wisely avoided the temptation to turn to surveillance systems that are rapidly becoming the rule in other parts of both the global North and the global South.


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