So what does Washington do? In an act of incredible stupidity, Congress has passed an extension of unemployment benefits. The old rule remains true: if you subsidize something, you get more of it. So this will give us more unemployment. No question about that. It will thereby worsen and prolong the problem.
It takes only a second of economic logic to see why. In a recessionary environment, we need freer, not more socialized, labor markets. Business needs to be able to hire workers at lower prices. You don’t want to increase the cost of hiring; you want to reduce it, especially with unemployment rising. Instead, Congress loots the workers of this country in order to prevent people from entering the job market.
It takes only a second of economic logic to see why. In a recessionary environment, we need freer, not more socialized, labor markets. Business needs to be able to hire workers at lower prices. You don’t want to increase the cost of hiring; you want to reduce it, especially with unemployment rising. Instead, Congress loots the workers of this country in order to prevent people from entering the job market.
No comments:
Post a Comment