CBO estimated today that unemployment will top out at around 10.5% before it recovers. Congress is doing its part to make CBO’s dire prophecy a reality.
Rep. Alan Grayson is set to introduce the Paid Vacation Act, which would make it federal law for employers to offer paid vacation for employees (hat tip to Marc Scribner for finding the story). Rep. Grayson believes his bill will stimulate the economy. “Fewer sick days, better productivity and happier employees” will boost GDP and employment.
The Congressman may be unaware that when workers become more expensive to hire, employers hire fewer of them. Or else he is more concerned with making CBO’s predictions come true.
(Cross-posted at Open Market)