Make full-time employment more expensive with required benefits, and suddenly there are more part-time jobs; provide ample benefits and low eligibility standards for defining disabled workers, and suddenly there are more long-term unemployed going on SSDI; keep interest rates at zero, and suddenly there are more elderly workers; end unemployment insurance, and suddenly you see people accepting jobs they were reluctant to take; and as we’ve seen at the state and local level, raise the minimum wage, and suddenly teens are struggling to find work.One could argue that ending unemployment insurance had getting unemployed people to take jobs they don't much like as one of its explicit goals. The balance are straightforwardly unintended negative consequences.
Tuesday, July 8, 2014
Unintended Consequences
Writing in The Federalist, Ben Domenech catalogs the unintended consequences of government actions. All listed actions were undertaken with good intentions.