Posted on 06/19/2013 4:44:00 AM PDT by SeekAndFind
The regulatory state never sleeps, relentlessly working day and night to tilt the economic playing field in favor of the politically connected. The regulations it imposes on the rest of us may or may not provide wider public benefits commensurate with their costs. But one thing is for certain: They reduce economic growth in two significant ways.
First and foremost, they inflict compliance costs on businesses. According to the most recent edition of the Ten Thousand Commandments, the Competitive Enterprise Institute’s (CEI) annual snapshot of the federal regulatory state, these costs amounted to $1.8 trillion in 2012—a staggering sum that exceeds 10 percent of the total size of our barely growing economy. One way or another these costs are either passed on to consumers via higher prices, taken out of the hide of workers through lower wages, or extracted from savers and investors as a result of lower profits.
But the damage doesn’t end there. The heavy burden of regulatory compliance can more easily be borne by large companies than small ones, which gives established firms protection from emerging competitors. For that reason, many federal mandates and regulations do not come into effect until corporations reach a certain size. Labor regulations, for example, often kick in when a company reaches a certain number of employees. This creates a tremendous disincentive to growth.
A recent study on the impact on business growth of regulatory thresholds built into Italian labor laws is quite instructive of how this works. In “The Unintended Consequences of Italy’s Labour Laws,” published by the Institute of Economic Affairs in London, Matthew Melchiorre of CEI and Emilio Rocca of Italy’s Istituto Bruno Leoni explain how one of the most restrictive labor regimes in the European Union has led to persistent unemployment, a wholesale shift to temporary workers,
(Excerpt) Read more at forbes.com ...
bfl
This is so true...I am in Europe, on assignment, and this is exactly whaat I see happening.
Read the complete article and see how it’s coming to the USA too.
its already here.
CC
School systems here in Indiana are converting thousands of non-degreed staff to “29ers” to avoid BaraqqiCare benefits.
It’s hard to act surprised.
-—— Outsourcing, subcontracting, and shifting employees-——
And, non compliance. just resist
This is what they wanted! They wanted to to work less, but they’re bitching about making less as well.
In 5 short years, Barack Hussein Obama, the Marxist faggot, and his Communist cabal have turned America and the idea of self-reliance on its head.
I think what pisses me off more than anything else is that no one’s stepping up to do anything about it.
The part time employees where I work were dropped to 25 hours a week beginning the first of June. We have lost quite a few of them, and there is a lot of work that is not getting done.
:: We have lost quite a few of them, and there is a lot of work that is not getting done. ::
But there is no lack of productivity for the compliance crew.
Fixed it.
The Unintended Consequences of Italy's Labour Laws: How Extensive Labour Regulation Distorts the Italian Economy
Matthew M. Melchiorre
June 2013
Simple solutions to complex problems often have unintended and undesirable consequences. An example is Italy's approach to combating unemployment. Rigid laws designed to protect the employed perversely discourage businesses from hiring and people from working. They also encourage precarious temporary employment among young people, informal work, and under‐the‐table deals that compromise worker benefits. The numbers of Italy's unemployed and of those outside the workforce are much higher than official estimates suggest. Italy's employment protection legislation – arguably the most restrictive in Europe – creates that which it seeks to prevent: the insecurity of unemployment.
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