Government policies in times of crisis. Comparing the Use of Short-Time Work in the 2008 World Financial Crisis and the Covid-19 Pandemic

The world financial crisis of 2008 and the Covid-19 pandemic were responsible for the most severe global economic downturn in decades. The scale of the dislocation posed unique challenges for each of the governments of the affected countries, not least in terms of choosing appropriate crisis management tools. Therefore, with reference to the two aforementioned crisis phenomena, this article will explain the similarities and differences between the government policies of Germany, the United Kingdom and Italy, using the example of state-subsidised short-time work. Under what conditions do governments decide for or against short-time work as an instrument of crisis management? Do the conceptions of this instrument differ in duration and scope between the states - and if so: why? And finally, how can similarities and differences in reactions be explained with regard to the two crisis phenomena under investigation? The theory-driven empirical analysis provides answers to these questions by drawing on approaches to domestic preference formation. It is argued that prevailing societal problem consciousness as well as societal values and particular interests as independent variables provide explanations for government policies undertaken in times of crisis. The political decision-making process is analysed in three steps: 1) measurement of the problem awareness existing in society for the two crisis phenomena discussed; 2) discussion of the value- and interest-driven discourse within society with regard to the instrument of short-time work; 3) explanation of the respective government's decision for or against short-time work. Based on the selection of cases, it is argued that generalisable statements can be made about the crisis policy actions of governments. In this way, the article aims to contribute to further research on crises and their political manageability.