I talk about labor markets and public policy, here is one nibble from my final Slate.com piece:
…displaced white-collar workers do not lead my list of victims deserving compensation. It is unfair that a 56-year-old is now expected to compete in a world for which he was never prepared. But we ought to be realistic. These transitional costs are borne by a class that has been about the richest and freest human history has seen. Let us say that you, Alan, could design a public policy to ease their readjustment. I probably would zero out that budget line and spend those funds in Niger, or on boosting the Earned Income Tax Credit, or paying for future Medicare benefits, or, dare I say it, lowering the corporate income tax as a means of encouraging white-collar re-employment.
How about looking at the barriers to entering business in the US? There’s evidence in de Soto that people are frequently quite capable enough if they’re allowed to get the benefits of their work.
The US is obviously better on this than Latin America, but are we as good as we could and should be?
Yes, the US really is one of the easiest places on the planet to set up a business and get capital. In most states you can go into business as a sole proprietorship with no registration, can easilly set up a “doing business as” for your sole proprietorship in a few days, and set up a corporation or partnership in a week or so. (I’ve done some of these myself).
The US may not be the place with the fewest business regulations, however, but for OECD countries we are doing pretty good.
>lowering the corporate income tax as a means of encouraging white-collar re-employment.
We are in a period where corporations can squeeze workers. Good workers are relatively plentiful, so there is no incentive to raise wages. Corporations would lower the nominal salaries if they could but since workers really hate that, they just reduce the real salaries by letting inflation do the work. But the inflation rate is relatively low.
For this reason, there is no indication that corporations would currently pass on any savings to workers. This is also why big companies currently want to switch to single payer healthcare. The companies would currently be able keep some of the money that would otherwise be spent on healthcare benefits. This wouldn’t be the case if there was a highly competitive market for white collar workers.
You’re entirely too fair and balanced for the likes of Alan Wolfe.
“You’re entirely too fair and balanced for the likes of Alan Wolfe.”
…And not nearly stupid enough.
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