So far, the German government is unafraid to pursue its industrial policy that has helped companies to retain its employers without sacking them and also boosting exports. The situation is very unlike the United States where the politicians are afraid to interfere in the companies’ business as far as saving jobs is concerned.
The very words, ‘industrial policy’ are enough to make the lawmakers at Washington recoil. Says Jacob Kirkegaard, research fellow at the Peter G. Peterson Institute for International Economics, that the belief in the United States is that the economy and the government are totally different realms. He also went on to add that an activist government in times of recession is a real advantage.
In a job sharing programme called “Kuzarbeit”, the German government decided to launch a job sharing programme whereby they would not sack the employees but rather cut down their working hours and the government would make up the difference in pay. As per a report of the Organization for Economic Co-operation and Development, this programme helped save around 50,000 jobs.