January unemployment rate drops unexpectedly to 9.7 pct

Shapecity · Feb 10, 2010

maxiep said: ↑

Hmm, I just got an idea. We'll fire our employees, give them a two-month severance package, allow them to "finish up" any projects they have for us (which would take two months of working full-time) and then re-hire them. Suddenly, we're not responsible for FICA.

This is the problem when you try to align incentives and have them flow through the government. People will always figure out how to exploit a loophole. Suddenly, you're incetivizing people to game the system rather than to do what the government would like us to do.
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Haha this was the first thing that crossed my mind too.

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January unemployment rate drops unexpectedly to 9.7 pct

Shapecity S2/JBB Teamster Staff Member Administrator

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January unemployment rate drops unexpectedly to 9.7 pct

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Shapecity S2/JBB Teamster Staff Member Administrator

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