Feb 12, 2012

We could be creationg jobs, but we don't.

I, as an economist and as an Italian, found this article very touching.
The reasoning is neat. And it makes clear what kind of issues arise in the labour market on the enterpreneur's side.
Is it really only about Hungary?

I wish more people in Italy could listen and understand the argument with an impartial eye. And think about our labor market again. In particular about what should be the role of the State in solving these kind of frictions.

To give you an idea, here an abstract (full article):

I could hire 12 people with €760 net salary, but I don't.

I wouldn't hire a woman.
The reason is very simple: women give birth to children.
[...] because when she gets pregnant, she goes for 3 years maternity leave, during which I can't fire her.
[...] I would have to hire somebody who works instead of her...
[...] I couldn't fire her when she comes back either. So I would have to fire the one who's been working instead of her the whole time.

I wouldn't hire people over 50 either.
[...] because they are soon in the protected age. And then I would be trapped with them, similar to the trap with employing women. 
I couldn't fire the protected employee, but someone would have to do the job right; so I would have to hire another person.

I would only hire 25-50 years old men.
They're also risky to hire. Since I don't have the right to fire them, if for any reason (I don't have enough income, or I don't like how they work) I want to. There's a high risk that they will go to court, and there's a high chance they will win. But this risk I would be prepared to handle.
You would cost me €1572.
[...] your €760 salary would cost my company €1572.

The competition sells the same service, illegally, under really crappy circumstances, charging only €9 per hour. They simply pocket the money, without even issuing an invoice; it doesn't even include the VAT. They don't have to take any responsibility, there are no warranties, they officially don't do anything, there's not even an official, legal trace of their existence.

The competition would do smear campaigns against my company. I would have to face anti-capitalist propaganda, I would be seen as a greedy asshole who charges €37 for what others charge €9...

I will only give you a job if:
  1. I can fire you, when and if I want to.
  2. If VAT goes down to at most 20%, but better yet 15%.
  3. If the state takes away "only" 30% of your money.
  4. If higher income is not exponentially punished.
  5. If the state punishes corruption instead of decent companies.
Until these things change, I won't give a job. Until the state ferrets out corruption in every possible aspect, I won't start a business, and I won't create jobs.

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