Send Grayson on Permanent Vacation

Fresh off the debacle otherwise known as the Pay for Performance Act of 2009 , Orlando Congressman Alan Grayson (D) has offered another idiotic proposal, the Paid Vacation Act. This legislation would be the first to make paid vacation a requirement under federal law.

The birth of this legislation dawned on Grayson while he was at Disney World. As a shareholder of the company (DIS:NYSE), I appreciate his patronage but with the nations economic status crumbling, one might suspect he had more pressing obligations. Apparently not.

Grayson commented he thought vacations would stimulate the economy. It might stimulate Disney and surrounding tourist places like Sea World, rental car companies and the surrounding hotels, but it would would be a regulatory anchor on companies efforts to produce a quality product while growing their business. Grayson, who cited vacation time as reasoning why the Euro is rising against the Dollar, has his lack of understanding of economics at display yet again.

Incentives work! Both ways. If these financial constraints, such as Graysons pending legislation, continue to be placed on businesses, they will be forced to hire less workers, which would restrict the amount of product produced. It would also likely lessen the profit margin of what is produced as efficiency is reduced, which would harm the ability of the company to grow, potentially costing jobs. This, ultimately, would also limit supply which would then force prices up. It is the equivalent of a tax, and when you tax something, you get less of it.

Noted in the story at Politico.com was that the United States was dead last in mandatory vacation, with France leading the way. The story failed to mention that the US is first in output (over 4 times that of France) and that France has historically high unemployment and had workers rioting within the past few years. I certainly do not aspire the United States to become the economic equivalent of France, but I fear many do.

A seemingly obvious economic principle bears repeating. There is no free lunch. Vacationers on their employers expense may think there is, but someone is paying the cost, and in the end it is the consumer.

There’s a reason why Disney World is the happiest place on Earth: The people who go there are on vacation,” said Grayson. “Honestly, as much as I appreciate this job and as much as I enjoy it, the best days of my life are and always have been the days I’m on vacation.” So, fellow Orlandoans, lets put him on permanent vacation during the next elections. But then again, it looks like he already is vacationing on our dime.