If you want the flexibility to be able to hire and fire people easily, maybe you ought to reconsider supporting the social safety net.
All those negative consequences for lay-off? A lot of that is because of how stressful it is to job hunt. 'people feel bad when bad things happen to people they know', and losing your job - especially when most people live paycheck to paycheck, healthcare is tied to employment, etc - is probably one of the top five worst things to happen to a person.
But, you know, realizing that investing in a social safety net could help a business is just not the sort of thing we see considered.
Just like businesses continue to do mass layoffs about as painfully as possible, despite the research.
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