U. S. discussed on This Morning with Gordon Deal

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A cornerstone of U. S. businesses dynamism but economists say one trade off is a risk of wider coronavirus transmission than in countries that provide sick leave to more workers global health authorities are advising people as you know to stay home if they fall ill but that is financially challenging for millions of Americans without paid sick leave who fear losing their paycheck or even their job if they don't go to work in depth on the issue with Harriet Torry economics reporter at the Wall Street journal it set this up one of the countries that have been impacted by the current advice so far most of them have pretty strict mandates in place so that people who are told to stay home on the quarantine or unit self isolation compensated by that employee is that what you well usually by either by their plans by the government or by sort of the social social insurance on that and then that much rarer in the US you know a lot of companies that do offer paid sick leave to take the you know the the high up the weight scale you go the more likely you are to have paid sick leave of the many many millions of people in the U. S. who you know in service sector jobs are low wage jobs I have no access to sixty four so that that you know talking to economists you look at the incentives so it let's say that you feel sick or you are in an area where you are encouraged to stay at home the problem with that is if you stay at home you're not going to be adding money and you're not gonna be able to put food on the table it just means that the incentives to people who might be sick or feeling sick to go out and carry walking is much higher and that is the big fear is that markets contribute to the virus spreading more widely yeah you revisited some history with two thousand nine and ten with the swine flu H. one N. one of what happened there what we learned the study by the American public health association on the set an estimated seven million additional people were infected in the U. S. and one thousand five hundred deaths occurred during the H. one N. one pandemic because contagious employees didn't stay home from work and the pair at the worries that that could that could repeat you know during the current virus because people kind of have to choose between receiving a paycheck or you know staying at home and trying to get better speak with Harriet Torry economic reporter at the Wall Street journal purposes gold with one mandated sick leave U. S. economy is more vulnerable to pandemics you said in your story to I'd and really captures so much of what we're involved in right now right even broadly speaking the conundrum all economies face is balancing the public health interest in mandating sick pay with the potential cost of business and the broader economy I guess because there are so many countries doing so many different things there's no one perfect solution of this of course not and if you look at the U. S. economy in the U. S. labor market in the good times like the name market is extremely dynamic if you can do a job he quit his job in the U. S. you could you can very quickly find a new job and and that is definitely not the case and a lot of content on another country's whether it much tighter labor rules and labor regulations you know in many countries in Europe it's much harder to five people so it takes longer to sort of re you know hi people it takes longer to find a job you know in many ways the the U. S. labor market is it's just that it's a different to many other economies and and and one of the consequences of that is that without like all of you know that with these regulations and the on sick pay unpaid leave on time off and so on on labor rights it just means that it is a more sort of fluid situation and that in a business hasn't been as I'm not required to people can be fired I will in the U. S. on on the one hand that means that the US economy has a lot of you know startups and that does it all the time dynamism in the U. S. economy but on the other hand they were there with these risks involved and that's kind of this trade off that that countries have to have to figure out when they're setting policy how are we trending now in this country when it comes to paid sick leave is it more of states requiring companies to do it is or is it more of company saying we're better off if we do it ourselves anyway what if I that aside from what's going on with creative arts at the moment it's kind of it's kind of split off to find that make in some states did start introducing paid leave then then that then I'm out of a dozen and the way that the system tends to work is that you sort of accrue sick pay you know some economists say that these systems work pretty well but you know and and that does help to reduce the spread of infectious diseases without having a huge impact on employment or wages a Tory economics reporter at the Wall Street journal twenty minutes now in front of the hour on this morning America's first news.

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