Is high jobless rate a result of the increase in costs and liabilities associated with hiring employees?
August 31st, 2010 | 
Author: Question by Just Me: Is high jobless rate a result of the increase in costs and liabilities associated with hiring employees?
While the economy is receding, does it make sense for the government to enact policies which increase the costs and liabilities encoutered by employers wishing to hire? Would it make more sense to decrease costs and liabilities so that more workers get hired and the economy begins to grow again?
Can government really create jobs? Or can it only impose obstacles or remove obstacles from private sector job creation?
Does Obama’s and Pelosi’s rigid ideology prohibit them from a common sense approach to getting this nation’s economy running smoothly again?
Best answer:
Answer by Vern86
No. People hire positions for the need of business, not the costs of employment. If a company can sell more than is produced now, they hire. The actually labor burden on any product is about 10%, with or without government liabilities. That doesn’t change.
Add your own answer in the comments!
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Reality,common sense and Government are never the room at the same time.
well, a really high jobless rate in the U.S. is traditionally due to bubbles bursting in markets that impact almost all business…
in theory, removing obstacles could help, but if people aren’t buying goods, it’s hard to do much about it…
what costs and liabilities do you want to decrease? like worker safety rules and minimum wage requirements?