Too many politicians deal in a fantasy-like land, while economists (well, at least, a good number of economists) deal with reality.
Economist Thomas Sowell pointed this out in a recent column. He was focused on politicians who love to give things away, noting that in order not to take responsibility for the costs involved, often push those costs onto the backs of business owners.
Sowell wrote:
The most politically painless way to hand out goodies, without taking responsibility for their costs, is to pass a law saying that somebody else must provide those goodies at their expense, while the politicians take credit for generosity and compassion.
Employers are ideal targets for such mandates, since there are always more employees than employers, and that is what counts on Election Day. Whether it is health insurance, time off with pay or whatever, these mandates on employers can be washed down with a little rhetoric about business’ “social responsibilities.” …
While you are enjoying all the goodies that politicians are sending your way, you may notice that your taxes are going up or that the money you earn or the money you have saved won’t buy as much as it used to…
If you are someone looking for a job — maybe a young person entering the labor force or a woman coming back into the labor force after spending a few years taking care of a small child- — you may find that there aren’t as many jobs available as there used to be before employers had to pay for “social responsibilities,” in addition to paying for the value of an employee’s work.
Sowell points that informing people that there are no free lunches makes economists less popular than politicians.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
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