MP Foghorne is running for re-election. One of his political proposals is the enactment of new legislation that will provide Canadian workers who are laid off with much higher unemployment compensation and will guarantee those benefits for two years. If enacted, what would be the most likely result of MP Foghorne's proposal?

Question

Quizplus · Accepted Answer

MP Foghorne's proposal may have a negative impact on entrepreneurship rates as it could create disincentives for workers to start new businesses or seek alternative employment, knowing that a higher level of unemployment compensation will be guaranteed for a longer period of time. This may lead to a decrease in innovation and job creation, ultimately hindering economic growth.

MP Foghorne Is Running for Re-Election