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The Human Prosperity Project Discussion

Laboring in Vain: How Regulation Affects Unemployment

What happens to unemployment when labor markets are strictly regulated?

Responses

The amount of people hired is reduced, hours are cut, taxes on business and hiring fees increase, and more people become reliant on government subsidies to live.

A good example of a labor protective law that harms jobs is California AB-5, which bans freelance work. It becomes costly to app based employers, and they want to pull out of the California market. This costs gig jobs.

I have always known that what Congress is planning would bring about the fall of America. As a teacher I stressed this point strongly in my history classes. America needs to wake up and take notes of the lessons taught by history. If we don't we'll repeat the mistakes made by past governments and we don't have to go very far back to find the results of the path we are about to take.

It seems every time there is government intervention in the labor markets; production slows down. Government regulations restrict the growth of the markets with bureaucratic rules, which are expected to help production. A review of the restricted labor laws governing Europe reveals many problems with labor, prosperity, and worker wages are more minor. Taxes on businesses are increasing, which has a natural effect on income.

Strictly regulated markets are not profitable, so businesses downsize or go out of business entirely, so unemployment increases.

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