Sunday, January 31, 2010

Unemployment Would Be Gone In A Flash!

Lew Rockwell offers the solution here, but most will never understand that government intervention in the market economy is the cause of unemployment. He lists some of the barriers that make unemployment persist in his article, which I quote directly:

  • "The high minimum wage that knocks out the first several rungs from the bottom of the ladder;

  • The high payroll tax that robs employees and employers of resources;

  • The laws that threaten firms with lawsuits should the employee be fired;

  • The laws that established myriad conditions for hiring beyond the market-based condition that matters: can he or she get the job done?;

  • The unemployment subsidy in the form of phony insurance that pays people not to work;

  • The high cost of business start-ups in the form of taxes and mandates;

  • The mandated benefits that employers are forced to cough up for every new employee under certain conditions;

  • The withholding tax that prevents employers and employees from making their own deals;

  • The age restrictions that treat everyone under the age of 16 as useless;

  • The social security and income taxes that together devour nearly half of contract income;

  • The labor union laws that permit thugs to loot a firm and keep out workers who would love a chance to offer their wares for less."

  • Government intervention in the market economy does not solve problems, it causes them, and then proceeds to make them worse. 
    As Mises said:
    "Economic interventionism is a self-defeating policy. The individual measures that it applies do not achieve the results sought."

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