Saturday, March 09, 2013

Health Care Tax

"Low-wage, temporary jobs have become so widespread that they threaten to become the norm...Many argue that it was the inevitable result of macroeconomic forces — globalization, deindustrialization and technological change — beyond our political control. Yet employers had (and have) choices. Rather than squeezing workers, they could have invested in workers and boosted product quality, taking what economists call the high road toward more advanced manufacturing and skilled service work. But this hasn’t happened. Instead, American employers have generally taken the low road: lowering wages and cutting benefits, converting permanent employees into part-time and contingent workers, busting unions and subcontracting and outsourcing jobs. They have done so, in part, because of the extraordinary evangelizing of the temp industry, which rose from humble origins to become a global behemoth." Erin Hatton, NYT

Nod to Kevin Lewis The truth is that we have temp jobs because of the enormous burden our ridiculous health care system imposes on hiring full time workers. Until we move to single payer, used in Germany, Chile, Singapore--in short, in the countries we trade with--we will not get new and better jobs.


Norman said...

"[...]taking what economists call the high road[...]"

I was unaware this phrase was common economist jargon. Yet here it is in the New York Times, so it must be true!

John Thacker said...

Germany has a universal health care system but it is not "single payer." Most people are on the public health insurance system, but a reasonable fraction, some 15%, opt for private health insurance (one must be above a minimum income to qualify.)

Anonymous said...

Or the government could stop trying to raise taxes and killing off investment.

Jim Oliver said...

I think that the fact that Government exempts certain businesses is big factor in this type of problem. If it is important enough to mandate for permanent workers it should be important enough to mandate for temporary workers. If it is important enough to mandate for full time workers it should be important enough to mandate for part-time workers. If it is important enough to mandate for organizations with more than 50 employees then it is important enough to mandate for organizations with less than 50 employees.

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