Clemens Fuest, the president of the Ifo Institute for Economic Research, commented on the ongoing debate regarding working hours, emphasizing that leisure activities cannot be taxed. He considers the issue of employment to be a private matter, suggesting that decisions about how much to work should be left to individuals. Despite this, he acknowledges the challenge posed by Germany's tax system, which relies on employment income since leisure, deemed a personal choice, escapes taxation.

In a recent event hosted by the SZ in collaboration with the Ifo Institute, Fuest was joined by Melanie Arntz, deputy director of the Institute for Employment Research, to discuss the significant potential that older individuals hold for the German labor market. This conversation comes at a critical juncture as Germany braces for the large wave of retirements associated with the Baby Boomer generation. The aging population is set to create notable shifts in the workforce, with implications for economic productivity and the sustainability of pension systems.

The discussion highlights an urgent need to reassess labor policies and explore how to engage older workers in the job market, which may alleviate some pressures on the social security system as the country faces an increasing number of retirees. The Munich Economic Debates series aims to shed light on pressing economic issues, such as the implications of demographic changes on labor and fiscal policy, encouraging a broader dialogue around finding sustainable solutions for the future workforce in Germany.