DENMARK - Government Pays 75% of Salaries During Pandemic

Arno Froese

The Danish government told private companies hit by the effects of the pandemic that it would pay 75 percent of their employees’ salaries to avoid mass layoffs.

To find out more, I corresponded with Flemming Larsen, a professor at the Center for Labor Market Research at Denmark’s Aalborg University over two days of emails and an hour-long Skype call. The following interview blends those conversations, which have been edited for length and clarity.

Derek Thompson: Could you first give me a sense of what’s happening on the ground in Denmark? What do the streets look like?

Flemming Larsen: Denmark has nearly entirely closed down universities, schools, public institutions, restaurants, museums, cinemas. No assembly of more than 10 persons is allowed. The borders have been closed too.

Thompson: Denmark’s government has announced a very aggressive plan to help workers in the next few months. Tell me what it’s doing.

Larsen: Denmark’s government agreed to cover the cost of employees’ salaries at private companies as long as those companies do not fire people. If a company makes a notice saying that it has to either lay off 30 percent of their workers or fire at least 50 people, the state has agreed to take on 75 percent of workers’ salaries, up to $3,288 per month. (This would preserve the income for all employees earning up to $52,400 per year.)

The philosophy here is that the government wants companies to preserve their relationship with their workers. It’s going to be harder to have a strong recovery if companies have to spend time hiring back workers that have been fired. The plan will last for three months, after which point they hope things come back to normal., 21 March 2020

Arno's commentary

Denmark is in the category of the super-rich nations. This is based on the criteria of imports and exports, which clearly shows the health of the nation. Life expectancy stands at 81.2 years, with 4.46 doctors per 1,000 in population. Quite obviously, these are drastic measures for the government. But as is self-evident, the well-being of the workforce goes hand-in-hand with the well-being of their economy, both now and especially in the future. As an EU member, Denmark is at the forefront with practical socialism; all for one, and one for all. This reminds us of Genesis 11:6: “And the Lord said, Behold, the people is one, and they have all one language; and this they begin to do: and now nothing will be restrained from them, which they have imagined to do.”

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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