Unintended consequences

Unintended consequences

Cry Wolf Quotes

President Clinton touted his new ‘family leave’ bill, sold as free time off to care for children. It turns out the employers of 50 or more covered by the bill have to pay medical care during the leave. At an average cost of $2,000 for the leave, it is not surprising that a Gallup study for the National Federation of Independent Business, found that half of the businesses said they would be reluctant to hire young women under the law, would try to replace low-skilled jobs with machines, and would trim other benefits.

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The Washington Times.
02/23/1993 | Full Details | Law(s): Family Medical Leave Act

New York State’s past independent pioneering activities in social legislation, while commendable in many respects…have already produced discriminatory differentials between the cost of doing business in New York and such costs in neighboring States [sic]. We can see no justification for deliberately increasing those differentials at this time by continuance of such pioneering.

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Statement by the Merchants Association of New York, “Merchants Oppose Job Insurance Bills”, New York Times.
04/17/1934 | Full Details | Law(s): Unemployment Insurance

Unfortunately, living wage laws may have an unintended consequence of causing low-wage workers to be replaced by higher skilled, more educated workers. Living wage ordinances hit hardest at new entrants to the labor force.

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Petition Opposing Living Wage Ordinance, Palm Beach County, Florida. Signed by groups including Greater Boca Raton Chamber of Commerce; Chamber of Commerce of the Palm Beaches; Northern Palm Beaches Chamber of Commerce; Greater Delray Beach Chamber of Commerce; Hispanic Chamber of Commerce of Palm Beach County, Inc.; Palm Beach County Hotel & Lodging Association; Florida Retail Federation; Florida Chamber of Commerce; Boynton Beach Chamber of Commerce; Jupiter Tequesta Juno Beach Chamber of Commerce; Sugar Cane Growers Co-Op; Palms West Chamber of Commerce.
10/02/2002 | Full Details | Law(s): Living Wage

No rule of thumb method ... can be devised which will fit all securities in all situations....It would produce even greater injury than the Federal Securities Act in retarding or preventing the follow of securities into new and refunding issues, which are indispensable if employment is to be maintained and increased and the huge burden on the Treasury is to be relieved.

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From a statement issued by the unnamed “directors” of the U.S. Chamber of Commerce