Monday, December 14, 2009

Only in America!

David Hale, Financial Times:

Other countries have not enjoyed the US’s success in sustaining productivity. Germany has restrained unemployment with subsidies for part-time workers. The subsidies protected jobs, but caused productivity to fall 7 per cent after six years in which Germany dramatically boosted productivity in order to regain competitiveness lost from the creation of the euro. Japanese unemployment has increased to only 5.1 per cent, as companies tend to fire only part-time workers, not permanent employees. As a result of restraint on firing, labour’s share of value-added in manufacturing has skyrocketed to 78.6 per cent from 58.9 per cent a year ago. Japanese corporate profits fell nearly 80 per cent.

Have you enjoyed the benefits of high unemployment lately?

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