When can a raise mean a big pay cut? The Cato Institute passes along this information:

The current issue of Cato Journal contains an article by Craig J. Richardson looking at how Massachusetts’s mandates and subsidies have created perverse incentives for employers and employees. A $1,000 raise can actually cost workers more than $3,000, while employers face disincentives to expand and hire new workers. The current mess in Massachusetts “offers cautionary lessons for the United States.”

Cross-posted from State House Call.

Stay Engaged

Receive our weekly emails!

~~~~~

Related Articles:

"Rich States, Poor States" Presentation – Traverse City, MI

Friedman Legacy Day

Calls to Expand Michigan’s Economic Development Programs Fall Short

The union wage premium: Difficult to calculate, likely overblown

Not in a Box, Not With a Fox; GOP Didn't Cut School Funding

Why Americans Should Care the U.S. is Approaching $20 Trillion in Debt

Share