Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Perhaps someone can explain to me how the ability to fire people more easily will boost the labor participation rate?

Is it that the fear that once a firm hires someone they will never be able to let them go in case of a business downturn? If that is the case, isn't the real problem then, that firms don't see any possibilities for growth?

This sounds like a vicious circle.

A far as S&P and the other rating agencies, their economists are just a caught up in conventional wisdom as anyone else. If they weren't so then US Treasuries would be rated B- by now.

Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Wed Mar 29th, 2006 at 03:23:29 PM EST

Others have rated this comment as follows:


Occasional Series