Exploding The Myth Of Competitiveness
- Topics:
- Global Strategy
- Tags:
- Competitiveness,
- Finance,
- Financial Accounting,
- Global Policy Forum,
- Question This Article Address
- Source:
- Global Policy Forum
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Overview: If one increases employers' contributions, or tax capital and financial products, he will increase the costs of labor, which will endanger the competitiveness of companies that will then have no choice but to declare redundancies or relocate. The question this article addresses is, how can one finance pensions in the future without endangering competitiveness and without forcing companies to relocate. It follows that an unreasonable increasing in labor costs would be detrimental to employment. One can criticize these assertions in two ways: firstly, things do not work like that in practice, secondly, decreases in labor costs have negative effects on employment that may outweigh any positive effects.
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Format: HTML | Date: Jul 2003 | Pages: 1
