Government + Labor Policy = People Get Hurt
Most of the time when the government gets involved with the nuts and bolts of running a business and believing they are doing the right thing we the people get harmed. Where is Occupational Safety & Health Administration (OSHA) to protect us against government harming us?
The Washington Free Beacon is reporting on Connecticut’s paid sick leave policy and how it has affected their citizens. How you should ask? In order to adhere to the policy, due to the businesses facing rising cost associated with the 2012 law businesses have “reduced benefits, cut hours” and slowed hiring according to a new report by a University of Kentucky economists Thomas Ahn.
Who received the brunt of negative effects of the policy; younger workers.
The University of Kentucky economist Thomas Ahn report concluded:
While older employees seem largely unimpacted by the law, younger employees in Connecticut aged 20-34 saw a 24-hour reduction in annual hours worked. For a part-time employee in the service industry, that’s the equivalent of roughly one lost week of work per year. These employees lost $850 per year in annual income, the equivalent of 3.5 fewer pre-tax paychecks for someone working part-time at the state’s minimum wage.
As I stated above these types of policies have a good thought in their infancy but when applied have many negatives consequences that the writers of these regulations and laws do not appear to think of our try to address when writing and passing these laws.
Perhaps the big businesses have less of these negative consequences affect them but small businesses thus their employers have to take the brunt of these negatives consequences. How these small business react to these regulations and laws and the effects on the employees must be considered and weighed against the positive outcomes of these regulations and laws.
Today’s Democrat Party’s new platform calls for mandatory paid sick leave to be passed at the national level. They are quoted in the article stating:
Democrats will make sure that the United States finally enacts national paid family and medical leave. We will fight to allow workers the right to earn at least seven days of paid sick leave. We will also encourage employers to provide paid vacation.
That is all fine and dandy and the positive outcomes the people and politicians perceive do not come without cost to the employees and ultimately the consumer of their product or service.
Ahn states in his report:
The Connecticut law disproportionately impacts young workers. Reduced work for these workers may have long-term consequences as experience and building up human capital through learning-on-the-job are especially important for these recent entrants into the workforce.
All I am asking for is the people and then ultimately the politicians who want to pass these types of regulations and laws consider the negative consequences that arise from the implementation of their regulations and laws and attempt to mitigate them or at least address them when discussing them.
Let’s talk about this today on The Live with Renk Show which airs Monday through Friday 9 a.m. to noon. To let me know your thoughts during the show please call (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.