Economist Lars Feld has advocated for a supplemental payment for recipients of the Bürgergeld (basic income support) as a measure to ease the burden of high energy costs. Feld suggested that if the crisis persists, the government should consider providing a one-time subsidy to low-income households before the standard increase in Bürgergeld takes effect. He noted that no additional measures are necessary for pensioners, as the most recent increases were already substantial enough.
However, Feld opposed a price cap on fuel, a policy advocated by the SPD. He argued that such price controls and fuel discounts distort market prices, preventing them from signaling that oil and gasoline are becoming scarcer. He emphasized the necessity of allowing price signals to naturally reduce demand to match the declining supply. Furthermore, he pointed out that mandated price caps apply universally, which could lead to costly unintended economic effects.
Feld, who is an economist from Freiburg, served as the head of the Economic Advisory Group until 2021 and previously advised Finance Minister Christian Lindner of the FDP.
