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Ban employment tribunals and rent tribunals !

Comment 11th August 2010

It's called "the law of unintended consequences"!

Give tenants security of tenure and it sounds good ! What are the consequences? A shortage of cheap rented furnished accommodation and a requirement of at least one month's deposit and one month 's rent in advance when previously a week of each would have sufficed,putting tha accommodation within the reach of an awful lot more people !

Give employees security in their jobs and it sounds good ! What are the consequences? Unemployment alas ! Nobody can force you to continue to buy meat from your local butcher if the quality deteriorates,so nobody should force you to continue to buy labour from someone who no longer give the service you want ! If you force employers to keep those they no longer want or require it's bad for business and it makes employers a bit more hesitant about employing someone who has been out of work for some time or who has a criminal record.

One reason that the USA is still the richest and most powerful country in the world is because people in general work harder and longer and value their jobs because they will get fired if they don't ! Nobody should be able to force an unwilling employer to keep them in a job because that demeans the value of the job and reduces the mobility of labour that eventually ensures a prosprous society.

I am sure I am preaching heresy here to the proponents of the politically correct,but the sad fact is that security of tenure of jobs means inefficient businesses and unemployment,whilst security of tenure in rented accomodation just means a shortage for those who cannot raise the resulting increased downpayments !

Why does this matter?

My idea is important because it would mean freeing the labour market and the property market from constraints that cause unemployment and shortage of rented accommodation.

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