These second order effects are a big problem in Europe. The governments there make it very expensive to fire anyone; typically around 6 months wages for anyone

These second order effects are a big problem in Europe. The governments there make it very expensive to fire anyone; typically around 6 months wages for anyone laid off, I think. As a result, companies are loath to hire new workers, even when an economic upswing is under way. Result: chronically high unemployment rates and young people who can't get jobs and don't understand why, not to mention increased risk aversion for companies.