Hungarian Outrage

I stumbled across this lovely picayune postal service from Republic of Hungary , titled "This is why I don't hand you lot a job"

It's total of classic unintended-consequence reminders for economists.  For instance , protecting people past times non letting employers burn them agency that people don't larn jobs inwards the outset place.

It has roughly skillful reminders for the United States of America of America every bit well.


Unemployment is nevertheless a huge problem. Policy later policy is advanced to create something most "jobs." Yet , similar Republic of Hungary , our Government puts all sorts of barriers inwards to house that discourage employment.  Payroll taxation , income taxation , benefits rule , workplace rule , to tell null of the tender ministrations of the nlrb , eeoc , osha , immigration in addition to and therefore on.   "Get out of the way" sounds simplistic , precisely at that topographic point is a lot IN the way. I'd honey to come across a comparable , accurate postal service for the US. (Maybe I'll write it)

This idea likewise informs the "Macro vs. Micro" debate. Many macroeconomists , good exemplified past times Bob Hall's AEA presidential address in addition to subsequent live on , are worried most the "zero bound" on involvement rates. Because nominal involvement rates can't autumn (much--see High German bonds) below null , nosotros can't bring a existent involvement charge per unit of measurement lower than the negative of the inflation charge per unit of measurement , or less than most -3% correct now. That is a potential "wedge ," a distortion inwards the economic scheme , in addition to policies from financial stimulus (Christiano , Eichenbaum in addition to Rebelo for example) to a time-varying taxation on consumption (Correia , Nicolini , in addition to Farhi for example) are proposed to bargain alongside it.

But is this the first-order , most of import "wedge" distorting the conclusion to hire to a greater extent than people? Is a -3% existent charge per unit of measurement actually the Big Problem inwards our economy? Or are the manifest financial , legal , in addition to regulatory barriers to hiring people a larger distortion inwards task markets? I haven't jumped on the null boundary bandwagon , inwards business office because my finance background leads me to hold off to a greater extent than at credit spreads than the grade of short-term authorities rates , precisely likewise partly on a suspicion that the actually large wedges prevarication elsewhere. As they for sure create inwards Hungary.

(Hungary is a beautiful house past times the way. I enjoyed 3 weeks inwards Szeged inwards 2010 spell flight inwards the basis gliding championships , getting to come across the countryside a picayune closer-up than I had planned. My heart in addition to individual goes out to the wonderful people I met there.)