Tuesday, February 11, 2014

The Conservative Economic Conundrums | National Catholic Reporter

The Conservative Economic Conundrums | National Catholic Reporter by MSW  MGB: Conservatives don't generally support government involvement, even when it is indicated.  And it is.  It is indicated in wage levels and in providing a robust additional child subsidy (which the market would never supply - although an employee owned firm might).  The biggest recent example is the employer mandate to provide health insurance.  Of course, in this case, there is government failure - probably due to business involvement in writing the Act.  This requires government action - but the right one.  Instead of making full time employment (at 30 hours and above) the standard - which only leads to cutting hours - instead make non-coverage by other means the standard (most young workers are covered by their parents and the requirement they be covered should be removed) - require anyone who works the customary hours be covered (if not covered already).  The penalty, however, should not be a fine - it should be withdrawal of the tax subsidy for covering ANY employee.  If you can't afford to cover the low wage folks who need it - you can't afford to cover executives, managers or owners.  Of course, here is where we get to the crux of the issue - Capitalism is not about free markets or even market forces, it is about protecting elites and throwing others to the wolves.

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