Friday, May 22, 2009

More Silliness on Parade

As Alan Grayson (D-FL) has introduced a bill to mandate paid vacation. This, of course, has all of the usual drawbacks of heavy handed government regulation – increased cost to business, lower employment, and slower economic growth. It also increases the marginal cost associated with employee #51 and 101.  

Perhaps the most ludicrous assertion is that the increased costs and reduced flexibility will make us more productive:  

Grayson’s bill is part of a larger move by Democrats to improve employee and workplace standards. Earlier this month, Democrats introduced a bill that would make employers give mandatory sick time.

“’The committee is looking at a number of proposals to help workers balance family responsibilities and work duties,’ said House Education and Labor Committee spokesman Aaron Albright. ‘The fact is the United States is behind the rest of the world in ensuring that workplaces have paid leave policies. These policies not only benefit workers but also help the employers’ bottom line because of lower turnover and better job satisfaction.’” 

If that were true, then there would be no need for the legislation, since businesses usually rush to implement policies that increase productivity and profits.

It’s also interesting that anyone would hold Europe up as a model of economic development, since many of their economies are in worse shape than ours, and their per capita GDP tends to run somewhere around 12 – 20% lower.