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As for why unemployment exists in the US... Please factor in illegal employment created by government criminalizing drugs and other things (prostitution or gamb

by snitko 13y ago

As for why unemployment exists in the US... Please factor in illegal employment created by government criminalizing drugs and other things (prostitution or gambling, for instance). Factor in minimum wage, which allows some people to earn more at the expense of those who are not employed at all. Factor in military men coming back from wars not being able to find jobs, because government used them and threw away. Factor in people who are not able to start certain businesses because it's expensive to obtain licences. So it's not just restrictions on firing people. It's so much more.

Weltan 13y ago
The market is a system constantly re-evaluating itself to reach equilibrium. It's a very weak view of the market which takes away from it the ability to take into account government 'interference'. Indeed, most governments don't interfere too often, prostitution and gambling have been illegal for decades in the US (legal where I live, however). I don't need to factor these things in, because the market has already factored them in. What government interference implies is a sort of Old-Testament God, who constantly interferes with its subjects. Governments try their best to interfere very little, they make sure inflation stays low-ish, they don't suddenly change economic policy except in crises. Government "interference" (the better word you might use is 'existence', since this is what I think you mean) is an ever-present fact of the market and the market has always taken it into account.
- snitko 13y ago
  I just pointed out a number of sources of unemployment originating from government interference and you just replied with "but government interference always existed, therefore it cannot be a reason for unemployment". That's not an argument.
  - Weltan 13y ago
    Did I say that? I didn't realize I made such a categorical statement! I thought I said that the market already takes the government into account, not that the government cannot be a reason for unemployment. The government certainly could be a reason for unemployment, but that doesn't mean it is always the reason for unemployment, nor does it mean that proper regulation necessarily leads to lowered employment.

by snitko 13y ago

Weltan 13y ago

The market is a system constantly re-evaluating itself to reach equilibrium. It's a very weak view of the market which takes away from it the ability to take into account government 'interference'. Indeed, most governments don't interfere too often, prostitution and gambling have been illegal for decades in the US (legal where I live, however). I don't need to factor these things in, because the market has already factored them in. What government interference implies is a sort of Old-Testament God, who constantly interferes with its subjects. Governments try their best to interfere very little, they make sure inflation stays low-ish, they don't suddenly change economic policy except in crises. Government "interference" (the better word you might use is 'existence', since this is what I think you mean) is an ever-present fact of the market and the market has always taken it into account.

snitko 13y ago
I just pointed out a number of sources of unemployment originating from government interference and you just replied with "but government interference always existed, therefore it cannot be a reason for unemployment". That's not an argument.
- Weltan 13y ago
  Did I say that? I didn't realize I made such a categorical statement! I thought I said that the market already takes the government into account, not that the government cannot be a reason for unemployment. The government certainly could be a reason for unemployment, but that doesn't mean it is always the reason for unemployment, nor does it mean that proper regulation necessarily leads to lowered employment.