Saturday, January 31, 2009

Where's John Galt?

Riddle me this Batman.

So you're trying to help the economy recover. Part of that recovery is to get the economy to generate jobs.

Does it help or hinder the process to add restrictions and contingent liability on employers who hire people within this country?

At a time when our country is looking for good paying, industrial jobs, does signing the Lily Ledbetter fairness law help or hinder a growing jobs base in this country?

We live in global economy. I can't change that. It just is; just like gravity. In that global economy, it's important for governments to make themselves attractive for potential employers. Just like dating. What does the US business environment offer that can't be had in another region of the world?

Each and every time a government adds a new employment law one of two things occur.

1) The company will relocate operations outside the area.

2) the company will limit or significantly curtail it's payroll liability to avoid the issues with employment law. As a result, things that used to get done with payrolled employees, now get done with outsourced contractors.

Our office does the book work for a restaurateur who owns about five stores. It would pay for him to have an employee to do the books for his businesses. But as he says, "who needs the headache? If you guys don't do the job, I leave and move on to the next firm. If an employee doesn't work out, I have to make sure all my I's are dotted and T's are crossed. Who needs the aggravation?"

There are lot's of businesses around the world who will look to the US and locate a plant. But with all the employer mandates our governments have imposed on employers, they might just look to the Mequilladora and say, "you know we can just put that plant right here".

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