Senator Hatch Warns Against European-Style Labor Regulations. Writing for Investor’s Business Daily, Senator Hatch of Utah explains how excessive government intervention translates into higher levels of unemployment and longer spells of unemployment.
Here’s are some excerpts:
Even a cursory look at comparative economic indicators shows that the adoption of a French- or German-style labor regime reduces workers’ job options and diminishes wages while bogging down economies and discouraging enterprise. In labor productivity, the United States has not only been the most productive country in the world, but has also grown in productivity at a greater rate than other developed nations. In 2006, U.S. productivity per employed person was nearly $65,000 compared to $49,000 for France and $43,000 in Germany. Regarding unemployment, the United State’s highest rate – 6.1% in 1994 – doesn’t come close to the lowest unemployment rate for France, which was 8.4% in 2001. For the past 15 years, the U.S. average unemployment rate was 5.1% while France’s was double that at 10%. In the U.S., workers stand a better chance of getting another job and sooner. Less than 20% of those unemployed have been looking for a job for six months or longer and only about 10% were looking for more than a year. In France in recent years, nearly 70% of the unemployed have been out of work for more than six months and nearly 45% for more than a year.