8 ms·
interesting... what if mandatory severance and other (supposedly) nice things are the reason those countries are underdeveloped?
by kofejnik 7y ago
interesting... what if mandatory severance and other (supposedly) nice things are the reason those countries are underdeveloped?
- zwirbl 7y agothose countries like Germany, Austria, etc?
- eitland 7y agoLet's add Norway and probably Sweden as well to that list.
- neffy 7y agoAnd Iceland, which is as free-wheeling a capitalistic state as anyone could want under the hood. Making employers responsible for severance pay is a way of aligning costs with information asymmetry, and also trying to make employers at least a little sensitive to the impact their whims can have on real people's lives.
- CraigJPerry 7y agoSeems unlikely to find a mono-causal relationship in something as complex as a national economy. It’s interesting though, how would you go about establishing a proof?
- fakedang 7y agoI wouldn't mind a stance which promotes human welfare over economic growth.
- brigandish 7y agoSince economic growth tends to go hand in hand with better access to health services and greater social freedom, it does. I always enjoy Hans Rosling going through the stats, if you’ve time it’s well worth it https://youtu.be/FACK2knC08E https://youtu.be/FACK2knC08E
- omginternets 7y agoWhat if most developed nations had mandatory severance and these other nice things? Hint: they do.
- pjc50 7y agoThe less-developed countries have generally been that way since their independence from colonialism. The argument that the regulatory burden on small businesses can be bad for economic growth does have some real validity - the great work on this is Hernando De Soto's The Other Path on Peru. However, that's an argument for making the tradeoff in an informed way and exempting small businesses (something the EU is extremely bad at!), while being against severance pay in its entirety is just a profit-before-humans talking point.