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Wednesday, February 04, 2009

Reversal of Capitalism - Part II: Labor's Big Payoff

I know it's a couple days old, but given how much horrendous legislation was either passed or is being proposed, I missed this one. But as Mickey Kaus points out, it will now be almost impossible for the government to save money by replacing contractors with a more efficient firm. Any contractor that replaces an old service contractor by the government has to offer ALL of those employees a job. If all the employees are inefficient, too bad. Does everyone understand how many millions of employees now cannot be fired? This inflexibility is a disaster for business and the taxpayer.

Bad medicine for business #1 - artificially raise labor costs. Check.