Job Security Laws And Its Effects On The Economy

971 WordsJun 29, 20154 Pages
When it comes to labor markets and the need for employees, as we have learned so far in this course the amount of employees needed for any given produced product will depend on supply and demand. When demand is low then the need for certain employees will not be needed. This then creates unemployment. When looking at some of the things that governments might try to help employ their citizens, it can actually hurt more than it can help sometimes. Full employment is without a doubt the ultimate goal of every nation; however, in spite of the failures of controlled labor markets over the past thirty years there is still a lot of controversy about what the government should “do” about unemployment. Unfortunately the unintended consequences of much of what we ask government to “do” to create jobs only make unemployment worse. Let’s start with job security laws. Almost every civilized nation deals with the issue of keeping its citizens employed. The intended purpose of such laws are to keep people employed and off the unemployment lines. In an optimal situation you would have competent employees knowing that they are secure in their career would be free to explore and become even better at what they do so that the value of what they do would be even greater. The unintended issues with such laws are that it becomes increasingly “difficult and costly for a private employer to fire anyone.” (Sowell, 2011) What normally happens when these laws are in place is you actually wind up
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