Abstract
<jats:p>In their brief “Between Fiscal Constraint and Growth: How the Planned Reform of Basic Income Support Hampers Social Investment,” Dr. Fabian Mushövel and Prof. Dr. Anton Hemerijck analyze why social protection measures can act as a driver of economic growth. In doing so, they refer to the social investment approach, which conceptualizes social policy as an investment. The authors argue that social protection measures—so-called “buffer policies”—help individuals cope with adverse circumstances such as illness or unemployment, stabilize aggregate demand, and cushion severe social disruptions. In combination with measures such as education (“stock policies”) and childcare provision (“flow policies”), a well-coordinated system of social policy can thus become a form of economic investment. Against this backdrop, the authors take a critical view of the planned reform of the Bürgergeld system. They argue that it misses the core problem. Instead of weakening a pillar of social investment policy, the focus should be on bundling benefits, reducing benefit withdrawal rates, and strengthening childcare provision.</jats:p>