economics comedy gold

Economics Comedy Gold

The Chamber of Commerce's "Economic Impacts of Mandatory Sick Leave

Ordinance" report, which the Chamber stands behind except for the

quick morning whacks (quotes from the report in purpletext):

This is not the first instance where the City Council has mandated

policy on Madison businesses. (p. 4)

No kidding! Probably not the last, either.

Many social policy initiatives are promoted with less than perfect

information, or worse, are based on biased or selectively supportive

information bits. (p. 4)

Mr. Pot, meet Ms. Kettle.

In fact, the overall economic impact on Madison has not shown up

directly in the economic growth numbers. However, at the business

level the effects are real. (p. 4)

They're campaigning for the Purple Teardrop with Clutched Pearls

award, I see. Makes you wonder who's patronizing the new Jaguar dealer

(O.K., nobody, given their current product range, but you get the

point). The usual -- i.e., supported by the data -- story is that the

positive economic headlines have mainly reflected good times for

business interests and the rich who hold most of the equity, while

digging through the details shows conditions have been less favorable

for ordinary workers.

Other states have employee sick pay programs that are far less costly

and do not put businesses at a competitive disadvantage. For example,

California has a fund for worker sick wage relief that is funded by

employees. It costs each worker just $27 per year. (p. 6)

Hard to say what this refers to, in the absence of a citation, but I

guess it's the California Paid Family Leave insurance program. The

report doesn't mention that while the PFL program is useful, it's not

remotely equivalent to sick leave in that there's an unpaid waiting

period, routine illnesses are ineligible for coverage, and there's no

right to take leave.

Educate don't Legislate [sic] (p. 7)

Economists shouldn't try to channel the Rev. Jesse Jackson. Period.

[continuing directly] Mandatory benefits packages hurt progressive,

responsible companies by decreasing their competitive advantage of

flexible and responsive compensation offerings. Studies have shown

that giving employees time off for family wellness needs is cost

effective for the firm.

Darn that city for trying to force blockheaded business owners to take

away the competitive advantages of their more enlightened competitors!