Reframing the Argument for National Plant‐Closing Legislation

Abstract

Many believe that a major problem in today’s economy is the unregulated movement of physical capital. Most other industrialized nations have plant‐closing legislation which prevents this problem from arising. This article explores possible reasons why proponents of such legislation have been unsuccessful in securing its passage in the United States, primarily a value preference for efficiency over equity and a restrictive definition of efficiency. Taking these reasons into consideration, the writer suggests an alternative rationale for plant‐closing legislation which has not been previously voiced arguing that (1) we should focus the debate over plant‐closing laws on whether they are dynamically, not allocatively, efficient, and (2) that we should consider whether the proposed legislation will help protect the most vulnerable members of our society.

Citation

Kubasek, N. (1987), "Reframing the Argument for National Plant‐Closing Legislation", American Journal of Business, Vol. 2 No. 1, pp. 15-20. https://doi.org/10.1108/19355181198700003