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Thursday, September 29, 2011

President Obama Comes Out of the Socialist Closet

The latest proposal by President Obama may well be the most telling thing he has ever said. Certainly everyone feels for those who are unemployed, especially those laid off for no other reason than a lack of seniority or the closing of a business. However, the idea that a person can prosecute or sue a company for hiring someone currently employed versus the unemployed is ludicrous. It is also pure and unadulterated socialism.

In a capitalist system, employers and employees are free to contract between each other the exact terms of their relationship. Certainly it is acceptable for groups of employees to discuss and agree on what acceptable terms would look like, as happens in a labor union. However, the employer retains the liberty to reject that proposal and, if necessary, fire the whole lot and hire new workers. Moreover, an employer is free to chose the candidate it decides is most qualified for the job. In the case of employed versus unemployed, it is likely that the employed individual has retained more skills and is more current in the field. He most likely has a more impressive resume, and has been deemed valuable enough to retain his position despite the weak economy. There are many reasons to choose the already employed over and above sheer thoughtless discrimination.

What this move would accomplish is to create work for trial lawyers and bleed more money out of the manufacturing and service base of the economy. However, President Obama is now in full campaign mode, concentrating less on economic realities than pandering to his base (special interests like the aforementioned lawyers) and to the masses of unemployed people who have been left to rot, ironically, by the president's own policies. The net result of such a law would be to further hinder economic growth and thus extend the problem of unemployment rather than alleviating it. President Obama knows this, but he does not care. November 2012 looms much larger in his view than the long-term results of his decisions. As Thomas Sowell writes in Common Sense Economics, it is often a viable move politically to kill the goose who lays the golden eggs.

1 comment:

  1. Right on! Obama has been going down that way for his whole presidency!


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