Saturday, April 4, 2020

Job rescue is too expensive

USA, EU and many other states [perhaps most of the states] are rescuing the jobs that are threatened by the lock-down after the new corona virus. This is a big mistake. Because the affected people could do without it, just their employment should be allowed, but the job rescue propgrams are veeery expensive:

* The job rescue attracts huge rent seeking. Mostly keeping inefficient jobs. But also : operating the business without client value. For example flying airplanes without passangers, keeping restaurants open without guests.
* The job rescue is financed from taxing, which has a big extra cost.
* The job rescue covers those too who have enough saving to be without a job or can find new job quickly.

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