Re: Temp Workers in Germany Dismay Unions
The issue of lower paid, less secure work in Germany comes down to this statement in your article--"At the heart of the debate is the question of whether a temporary, lower-wage job is better than no job at all." Who can answer that question other than the worker himself? Higher unemployment is the cost to be paid for raising the cost of labor above the natural rate. There is no way to avoid it. But it does not stop there. The higher cost of labor makes German companies less competitive, further reducing employment. Furthermore, those unemployed workers must be supported by the production of those still working. They must pay higher taxes, which reduces their standard of living and incentives to work. Then there is the social disintegration that follows from a demoralized unemployed population. Those who advocate labor market intervention have much for which they must answer.