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by gwright 3131 days ago
From a public policy standpoint, I'd rather provide some assistance to people working part-time or for low wages than to provide 100% assistance to someone who is entirely unemployed.

Unfortunately many attempts to regulate the workplace result in fewer jobs and thus more people who need 100% support. One example of this is the effort to raise the minimum wage which, not surprising at all, has resulted in more incentive to eliminate or automate low-end jobs. Advocates for a $15 minimum in the fast food industry, for example, should be prepared for a net reduction in jobs in that industry as automation is rolled out or business models are modified to adjust to the higher labor costs.

I'm not saying that all labor regulations are bad but I am saying that the second-order effects of many regulations can make the overall labor situation worse.

1 comments

The evidence does not support your view (at least in the UK). http://cep.lse.ac.uk/pubs/download/CP217.pdf Even if it did, there are other policies like Basic Income that solve some of these problems in a sensible way.