Unintended Consequences, Pt 1: Labor Day

On this Labor Day, I find myself working my 2nd job (as is often the case on Mondays), continuing the second job I've had for over a year. Most weeks, between both jobs, I work over 60 hours a week (sometimes over 70).

Labor Day is a holiday to remember America's workers and all they do for America has a whole. My experience reminds me that, while labor unions brought us the weekend, minimum wage, and safe working conditions (the last of which I consider the most important--time off is unimportant if you're hurt from an on-the-job injury), regulations have consequences.

The minimum wage, while historically low relative to the last time it was changed and inflation thereafter, provides a basic minimum amount to be paid. Raising it raises costs for a business and thus encourages efficiency (to minimize labor and thus maintain total labor costs)(http://www.triplepundit.com/2013/08/mcdonalds-15-minimum-wage/). Raising the minimum wage also discourages workers from improving themselves by attaining additional skills which would make them more valuable to their employers.

This wraps into "Obamacare", a/k/a the Affordable Care Act. Should the government force employers to buy insurance and/or require individuals to have insurance? The Supreme Court says "yes"; it's a tax. However, this gives both sides leverage to make improvements--the individual can improve themselves and move to a job with better insurance and the employer can offer better insurance in an attempt to recruit better employees. In each case, each can cut insurance quality to the minimum required, knowing that costs are passed on to customers and to try to maintain profitability.

Capitalism is evolving. Clearly we have more regulation than at other times in history, but we also have longer life expectancies and lead healthier lives. Regulation is good, but going too far (my favorite example is the myriad of regulations that go into every car sold in the US; http://www.caranddriver.com/features/the-cafe-numbers-game-making-sense-of-the-new-fuel-economy-regulations-feature) costs jobs and money. The key is balance, and that's sometime we all need to work toward.