500 euros worth of a shopping voucher given to all citizens is the proposal given by Germany’s retail sector in order for the much needed stimulus to the economy.
The 500-euor shopping voucher is to encourage residents in Germany to start shopping again once the pandemic is declared over. The managing director of the German trade Association (HDE) Stefan Genth said, ‘the additional 500 euro income per inhabitant would mean a demand impulse of up to 40 billion euros.’
Data from the Federal Statistical Office revealed that the € 300 ‘Corona-Familienbonus‘ (a special child bonus of EUR 300, received by everyone who works in Germany) that the government allocated to every family has done more in raising the economy than reduced VAT. We wrote about it HERE.
Most families in Germany used the child bonus paid out last year to buy durable consumer good such as clothing, furniture or a computer.
The 500 euro stimulus should be given to all residents in a timely manner to encourage purchases as soon as the lockdown is revoked. It should also be given without bias and sent in with ones salary, pension, salary etc in stead of using the criteria of ‘who needs it the most’.
Source: Handelsblatt.com , Iamexpat.de