from Being Libertarian "THE NARRATIVE: Sweden is shifting toward a shorter work week. This must b…

from Being Libertarian

"THE NARRATIVE: Sweden is shifting toward a shorter work week. This must be a sign of healthy economy, and a benchmark to a more leisurely work week!
THE REALITY: "The Other 98%" fails to recognize that this is a voluntary initiative being tried by some companies in order to increase productivity. If proven valuable, companies that can afford to do this will likely recognize it as a more efficient market mechanism and follow suit. The problem is the way to implement this new invention, which will undoubtedly warrant government mandate in the eyes of the left. There are consequences to such a mandate.

First of all, Sweden's economy isn't an example of a healthy one. The Swedish unemployment rate is 7.8%, compared to the U.S 5.1% [1]. Swedish disposable income is $29,185 [2], compared to the US $38,094 [3]. In essence, a shorter work week could result in a low demand for labor. Since labor is a service, companies will by the most efficient service for the best price. However, if there is a cap on how much of a supply of a service one can demand, demand will not grow beyond a certain point. This will inevitably result in a lowering of the workforce participation rate in Sweden.

Citations:
[1] http://bitly.com/1RwVMth
[2]http://bitly.com/1NroFsa
[3] http://bitly.com/1RwVMti