Re:Why Rent Is So High and Pay So Low
by stretchwithme on Saturday August 08, 2015 @08:30PM
(#10029074)
Anything that makes labor more expensive than the price the market is willing to pay.
Government adds a lot of costs and even fixes the price of unskilled labor in the belief that these workers are benefiting.
But if the total cost of labor is higher than employers are able to pay for labor, they won't hire. This is especially true in a downturn.
If we want to assist these workers, it would be far better to help them directly instead of forcing employers to do it. We'd avoid distorting the market place and shutting a certain percentage out of it altogether.
Government adds a lot of costs and even fixes the price of unskilled labor in the belief that these workers are benefiting.
But if the total cost of labor is higher than employers are able to pay for labor, they won't hire. This is especially true in a downturn.
If we want to assist these workers, it would be far better to help them directly instead of forcing employers to do it. We'd avoid distorting the market place and shutting a certain percentage out of it altogether.