5 Government labor policies and the law of unintended consequences
I. Introduction
Most income comes from work. The national income accounts of not only the United States but also of most other industrialized nations show that a large majority of income, typically about 60–70%, comes from worker compensation. To be sure, complementary factors of production like capital and natural resources are also important, and technological advances are key to raising labor productivity and incomes. Factors like the mobility of resources and trading in goods and services can positively impact nations as well. Nonetheless, any attempt to seriously change both the magnitude and distribution of incomes must deal very importantly with labor markets. ...
