Olsen debunks a number of myths regarding labor reforms. These myths include: making it easier to fire people will increase unemployment; high unemployment rates will fall when the economy recovers and high levels of labor flexibility will lead to lack of protection for workers.
- Making it easier to fire people will only increase unemployment.
- The high unemployment rate is only a feature of the current recession, and will fall when the economies recover.
- Higher flexibility would equal “American”-style lack of protection for the workers.
- The Mediterranean culture and regulation stymies entrepreneurship and how are we supposed to compete with the Chinese?
- Unemployment actually is not that high as a lot of people work in the unofficial sector.
- If wages were lower, people would be poorer and Southern Europe would be poorer.
- The Germans want everybody to become like them.