Friday, January 11, 2008

Singapore: liberty, Justice and JOBS for all

Bryan Caplan with a compelling Singaporean solution to rising unemployment:
With flexible wages, of course, it doesn't matter who legally pays the a tax. But the whole problem with recessions is that wages are somewhat sticky - you can have surplus labor for years before wages fall enough to restore full employment. By cutting employers' share of the tax, the Singaporeans greatly speed up the wage adjustment process.
A little more liberty would be nice?

UPDATE: More mind-blowing Singaporean solutions--this time on healthcare:
Singapore has achieved American health outcomes for about a quarter of the share of GDP the U.S. spends. Furthermore, if Canada shows that socialized medicine can save a few percent of GDP without hurting health, Singapore shows that the free lunch offered by greater government control is meager compared to the free lunch offered by old-fashioned individual incentives.

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