The debate about the best anti-inflation idea has flared up, with new solutions emerging every day to fight inflation. The “Krone” asked four economists to examine the opposition and union models for their usefulness and feasibility.
- Maximum price: Nominated for Word of the Year. WIFO boss Gabriel Felbermayr argues for subsidized quotas. He rejects national solo efforts. That would ultimately cost taxpayers dearly. Finance Minister Magnus Brunner (ÖVP), who will evaluate together with Felbermayr in the coming weeks, sees it too. The model includes a free electricity quota – the difference with the electricity actually consumed must be paid privately.
Christoph Badelt, chairman of the Fiscal Council, thinks this is “very smart”. However, one must stagger socially accurately. Franz Schellhorn of Agenda Austria wants minimum income beneficiaries to receive vouchers for electricity costs. He doesn’t want a watering can, so he calls ÖGB’s proposal “absurd”.
Economist Stephan Schulmeister is also against price ceilings. The companies would raise prices. “In Germany they have tried that with the mineral oil companies. Then they intervened. The effect is extinguished.” If the prices on the electricity exchange continue to rise because of the war, then it is a game at the expense of the state.
Former OMV boss Gerhard Roiss has an interesting and easily implementable suggestion: if you save ten percent, you get ten percent credit. Who saves 20%, 20.
- Value added tax: Union and SPÖ argue for a reduction or suspension of energy costs and food. Not a good idea, says Schulmeister. And he is not alone in this opinion. “It’s a measure that doesn’t work. And it’s not verifiable,” says Schnellhorn.
- Price commission: GB boss Katzian demands this. She must intervene if necessary. Badelt and Felbermayr say this should not be reconsidered until Putin stops supplying gas. Then you end up in a kind of war economy. Schulmeister: “There is also an urgent need for market transparency. Then one would document who is raising prices excessively. For example with food.” This would be an important regulatory tool.
- Basic security for children: Caritas, Diakonie and Volkshilfe renewed this requirement on Monday in view of the increasing poverty in the country. Stephan Schulmeister sees this as a necessity given the emergency.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
