Economic Ignorance Story of the Day from Pasco County Florida

Incentives matter.  How smart is it to pay people not to work and charge employers more to employ people?  Combine this with a minimum wage law  (where workers are forbidden from offering their services at a competitive rate) and you have a recipe for longtime unemployment.

The correct policy would be to eliminate unemployment benefits (and their corresponding costs to employers) and eliminate the minimum wage law.  Yes, wages would go down but so would the operating costs of employers as well as the prices of their products and services.  What you lose in wages, you make up for in purchasing power.  The less interventionism by government the better the results with lower prices and an increased standard of living for all.

Employers to be hit with big fee jump for unemployment
Tuesday, November 17, 2009

PASCO COUNTY (Bay News 9) — Owning a small business can be difficult and starting soon local entrepreneurs will be dishing out a lot more cash to the government.

The annual fee employers pay to fund unemployment benefits is about to go up drastically.

The fee is jumping from $8.40 per employee to $100.30.

“That’ll have a huge burden on the small business man and woman — any business in the state of Florida — who are struggling right now,” said state

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