Finland & Productivity

Sanna Marin, PM of Finland and the world’s youngest Prime Minister, suggested a new rule of six hours per day, a four-day working plan that could have some concerns. To begin, congratulations to Sanna for her marvellous achievement. 

First, reduced working hours might bring down the productivity of the country. Second, wages move in tandem with productivity, and productivity, in turn, defines the output. If payments continue to grow while productivity lags, it creates a fiscal deficit. Mismatching productivity is one of the prime problems with the Euro since countries at different trajectories of productivity are clubbed together. On the contrary to popular opinion, the Euro is a fixed currency. The Euro mechanism assumes the market will fine-tune factor payments based on the productivity of respective countries. Finland is a leading innovative country and one of the world leaders defining employee empowerment and flexible working hours.

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Featured Image: by Tapio Haaja on Unsplash
 
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