(un)Common Sense discussion of public policy in re: the economy.

[Read the whole article. This guy is dead on target with his analysis. Another gem from Dave Farber’s IP list. -Thomas]

The Economy Summed Up: Pay Any Price, Bear Any Burden, to Avoid Creating Jobshttp://markschmitt.typepad.com/decembrist/2004/03/the_economy_sum.html

The political analyst Charlie Cook’s weekly column, available by e-mail

subscription http://nationaljournal.com/about/cookcolumn.htm is a real

treasure, and usually offers much more than just the horserace. There’s a

single paragraph in today’s column that I think sums up what we need to

know about the economy and jobs better than anything I’ve read:

In December, the CEO of a California-based high tech firm told me that

“there is no amount of overtime that we will not pay, there is no level of

temporary services that we will not use, there is no level of outsourcing

or offshoring that we will not do, in order to prevent us from having to

hire one new, permanent worker in the U.S.” As I travel around the country,

meeting with business leaders, I hear similar, though less succinct

thoughts in almost every sector and every part of the country. U.S. wages,

health care, and other benefit costs have gotten so high — and the press

by investors for high stock prices is so great — that the premium is on

wringing every last bit of work out of as few employees as possible, to do

anything but incur the costs of adding permanent employees. [emphasis added]

[see url above for full article]