Workers Compensation and the Laws of Unintended Consequences

There is a long article at Wikipedia about Workers Compensation, its history and causes, and pros and cons of Workers Compensation.

When laws were first passed to compensate workers for on the job injuries, it seemed like a good idea because the only recourse before was for the worker to sue the employer, which suit the worker usually lost. However, as the insurance industry grew there would have been plenty of opportunities for the workers to buy job injury insurance without forcing the employer to buy the insurance, which ultimately comes from the capital that could be used to retain good employees. "Responsibility: A detachable burden easily shifted to the shoulders of God, Fate, Fortune, Luck or one's neighbor." -Ambrose Bierce, The Devil's Dictionary, 1911

But, when the Workers Compensation laws were passed, The Laws of Unintended Consequences reared its ugly head, as it always does, especially when the government decides to use force for doing what appears to be, and is sold as a law "for the greater good."

From Wikipedia--"The idea of unintended consequences dates back at least to Adam Smith, the Scottish Enlightenment, and consequentialism (judging by results). However, it was the sociologist Robert K. Merton who popularized this concept in the twentieth century. In his 1936 paper, "The Unanticipated Consequences of Purposive Social Action", Merton tried to apply a systematic analysis to the problem of "unanticipated consequences" of "purposive social action".

A small business owner wrote to me about the unintended consequences of workers comp. "D---- sprained his ankle at the end of March. Even on the day he sprained it, he had no limp. A week later he still had some swelling, so he wanted to go get it checked out. Ergo, my first workers comp claim. The xrays were negative and he had no work restrictions, but the doctor, of course, wanted to see him back a few weeks later for a follow up. Now they want him to go in once a week for four weeks to do physical therapy. He is working out in the field every day without pain and without a limp. Why in the world does he need physical therapy for an ankle sprain that happened almost two months ago? I can just see the doctor salivating when he notices it is a workers comp claim. Yippy! Easy money from the insurance company! Get him back in here!"

We can be sure the American Medical Association lobbied very hard for worker compensation laws, along with the American Psychological Association. Often times an employee can receive counseling because of mental problems related to a workplace accident.

One unintended consequence of worker compensation law is a health care system that is burdened with more patients. The same consequence will arise from the universal health care law that was just passed. As long as a third party is paying for your health care, and your employer is required to pay you while you are sitting in the doctor's office reading a magazine, you will use that service more.

These worker compensation laws reinforce Frederic Bastiat's theory that law is legal plunder.

When D---- is at his doctor appointment he is still on the payroll, receiving his hourly pay while sitting in the doctor's office. What a deal for most workers who hate their jobs.

"The Law of Unintended Consequences is an adage or idiom that warns that an intervention in a complex system invariably creates unanticipated and often undesirable outcomes. It is akin to Murphy's Law, and is commonly used as a wry or humorous warning against the hubristic belief that humans can fully control the world around them."-Wikipedia

Charles Tolleson