In response to concerns that the COVID-19 pandemic would lead to large increases in unemployment and falls in GDP growth the Australian Government announced the JobKeeper program on 30 March 2020. This program provided a wage subsidy for businesses significantly affected by COVID-19 to help them retain and continue to pay staff. In particular, eligible businesses were given a wage subsidy of $1,500 per fortnight for each eligible employee.

The program had three objectives: (i) to support business and job survival, (ii) to preserve the employment relationship between employers and their workforce and (iii) to provide income support to business owners and their workforce.

The JobKeeper wage subsidy is set to expire in March 2021. Do you think the program should be extended? Why or why not?