This was orginally posted at Mitchell’s blog International Liberty. It is particularly relevant as we watch the un- and underemployed vent their frustrations in Baltimore. ~ Ed.
A nation’s prosperity is determined by the quantity and quality of labor and capital that are productively utilized.
Yet that seems to be the favorite hobby of the political class.
And there are real consequences. A new study by a pair of economists, published by the National Bureau of Economic Research, has some interesting findings on the link between redistribution programs and labor supply.
It’s a bit wonky, given the way academics write, but they produce some important data on the negative unintended consequences of government dependency.