The Greens: 250 euros for every citizen to save inland cities
In a paper they suggested that every German receive an “on-site purchase voucher” of 250 euros. The idea of the Greens was that it should only be possible to redeem the coupon in retail stores and within a certain period of time and in any case in online retail. With the project, MPs wanted to boost local retail trade and save inner cities from extinction. An “on-site purchase voucher” achieves these goals in a more targeted and equitable way than blanket tax cuts, which not everyone will benefit from equally, according to the newspaper. Vouchers must be paid for by the tax authorities.
However, the idea of the cast has not been implemented – however, a similar model is used in the United States: in 2020, all citizens received checks of various amounts depending on their annual income, which were intended to support the population and stimulate the economy. This program will also continue under the new US President Biden.
Previous economic method Peter Bofinger: “insurance coupon” to strengthen the economy
Professor Peter Bofinger of the University of Wrzburg and the former federal government’s economics is now embracing the concept of luxury vouchers as economic aid: his idea is for every German to receive a voucher of 50 euros, according to WELT reports. Every person must receive a voucher, including children. If 83 million Germans got a voucher, the amount that the tax authorities would spend would be 4.25 billion euros.
Bofinger calls the coupons “lockout coupons” and claims that they can only be used in stores affected by the epidemic shutdown until the funds get to the right place. The mirror and T Online I quote Bofinger with the words: “[Wir mssen] Businesses and the self-employed were targeted [untersttzen]Who had to bear massive losses of income due to the closure of their operations. This means that the coupons can not only be used in stores, but also in restaurants and cultural institutions, for example.
Coupons must be withdrawn and time determined
Coupon distribution should also start as soon as possible, according to media reports from Bofinger. However, in order to avoid too much crowds and to ensure compliance with established hygiene measures, vouchers should be distributed according to a “random process” and time limited, the economy believes. Some will receive their voucher in the summer months, while others can only redeem the voucher during the Christmas period.
In the media, Bofinger explains the payment process with the “reservation coupons” he’s considering: Customers pay the coupon at a licensed store, which pays the coupon to the home bank like cash. This should send economic aid to the Bundesbank, who in turn reconciles the voucher with the Ministry of Finance. This process is “easy to manage administratively,” so says Bofinger.
To date, the implementation of the “reservation voucher” has not yet been launched – it is not clear if it will come.
Finanzen.net editorial team
Image Sources: Lisa S. / Shutterstock.com, Kzenon / Shutterstock.com
“Tv expert. Hardcore creator. Extreme music fan. Lifelong twitter geek. Certified travel enthusiast. Baconaholic. Pop culture nerd. Reader. Freelance student.”