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Mandatory, extended vacation is good for the economy

Congress is off on vacation until Labor Day. Robert Reich wonders what would happen if we all got some extended time off.

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Here's an idea I offer free of charge to any candidate running for office this fall: Propose that every American get a mandatory minimum of three weeks paid vacation a year.

Most Americans only get two weeks off right now. But many don't even take the full two weeks out of fear of losing their jobs. One in four gets no paid vacation at all, not even holidays. Overall, Americans have less vacation time than workers in any other advanced economy.

This is absurd. A mandatory three weeks off would be good for everyone -- including employers. Studies show workers who take time off are more productive after their batteries are recharged. They have higher morale, and are less likely to mentally check out on the job.

This means more output per worker -- enough to compensate employers for the cost of hiring additional workers to cover for everyone's three weeks' vacation time.

It's also a win for the economy, because these additional workers would bring down the level of unemployment and put more money into more people's pockets. This extra purchasing power would boost the economy overall.

More and longer vacations would also improve our health. A study by Wisconsin's Marshfield Clinic shows women who take regular vacations experience less tension and depression year round. Studies also show that men who take regular vacations have less likelihood of heart disease and fewer heart attacks.

Better health is not just good for us as individuals. It also translates into more productive workers, fewer sick days, less absenteeism. And lower health care costs.

In other words, a three-week minimum vacation is a win-win-win -- good for workers, good for employers, and good for the economy.

And I guarantee it would also be a winner among voters. Mitt Romney, President Obama -- you listening?

About the author

Robert Reich is chancellor's professor of public policy at the University of California, Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton.

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BusyPoorDad's picture
BusyPoorDad - Aug 10, 2012

Most employers already give 2 weeks for starting and five to ten sick days. this is on top of the 10 federal holidays that many companies allow half days before or after. One of the places I work lets long term employees gain up to 4 weeks of paid leave and up to two weeks of training. (now if only they would hire full time again, last full time hire was 2009)

Mandating three weeks of paid time off? what would that come at the expenses of? our sick time? Or reduced pay? Or maybe it would become the cap of how much time you're allowed. When someone calls off sick or goes on vacation, they don't hire new people, businesses use their part time employees or give the work to those who did not leave.

He complains that many people did not even use their two weeks because they fear losing their job, yet three weeks is going to fix that?

When I was on Active Duty we got 30 days of leave a year that you had to take. Except you were not allowed to take it all at one time. Out side of the College I worked at for 7 years, I've not seen any job where I could take more than a week and a few days off at one time and then that meant a lot of planning by me, my co-workers, and my boss.

People will choose to work for places that pay them the best. No one is forced to work for employers that don't give vacation. You are always free to quit or start up your own business that gives 3 weeks off.

Emmasdad's picture
Emmasdad - Aug 10, 2012

I’m guessing that Mr. Reich has never signed the front of a paycheck.
Only an Academic (through his or her ignorance) or a politician (for his or her personal gain) would continue to load our (horribly overloaded economic) wagon with no regard for the mule that is pulling it.
With guys that think like him in Washington it’s no wonder our wagon is moving so slow.
Mr. Reich, I’m one of the mules and I can see what you are doing even if you can’t.

Drummstikk's picture
Drummstikk - Aug 9, 2012

The Onion joked sometime back that Ron Paul had the guts to "stand up and tell it like it never can be." Robert Reich does the same thing from the opposite end of the political spectrum.

The economy and changing times have forced me to change jobs/reinvent myself on average every 5 years or so, so even when I am steadily employed and not in freelance hell, I still never get past the "2 weeks a year" threshold. I don't expect to see more than 2 weeks vacation a year again before I reach retirement age or keel over on the job.

I think Reich is 100% correct that this would make excellent humanitarian sense and probably long-term economic sense, but as others have pointed out, it doesn't make good short-term business sense, and thus will never happen.

braynstorms's picture
braynstorms - Aug 9, 2012

It is curious to me why more companies don't do what mine does - offer vacation to keep talented and valuable employees. There is no doubt that they need recharging, but if it is good to offer more, wouldn't more companies choose that advantage. The highest tech and professional companies do just that. So - why don't more companies do that with all levels of employees? Well - because the market customers for retail and other service industries obviously care more about price than quality. The people at big box stores or rude and lazy because people who are not rude and work hard often move up and on to better things to make more pay. The rest of them don't deserve more time off or more pay because they don't earn it. The companies are okay with having lazy people at those positions because the customers are okay with it. More of them would rather go to Wal-Mart and have lousy service, employees who are not educated on their products - and may not even show up to work on any given day, and rude employees in order to save $0.75 since on a gallon of milk or other product. When the customer is willing to have less to save money, then companies will offer less for the money. If there were no stores willing to hire the laziest of people to earn a paycheck and people had more self respect than they do - we would earn more, save more, rest more, and grow more. You can not legislate this on a society. You can not force people to care or perform and you can't force businesses to force them too either. Welcome to freedom and the human condition. I prefer it over death or tyranny.

Bananafanafoana's picture
Bananafanafoana - Aug 7, 2012

Bah, humbug. Are there no workhouses yadda yadda.

azdustdevil's picture
azdustdevil - Aug 7, 2012

Bob: Great comment. I remember visiting Europe where vacation is considered a necessity. My only suggestion is that considering how prosperous our economy is, mandatory vacation should be four weeks a year, NOT counting holidays and sick time. We will be a much happier nation because of it.

Austrian School's picture
Austrian School - Aug 7, 2012

Rarely is anything that needs to be mandated a good idea. If it was a good idea, you wouldn't have to force people to do it, they're do it voluntarily.

Regarding so called paid time off- some people have a a preference for the pay over the time off depending on their particular situation. Also, the whole idea of paid time off is kinda nuts because you are just being paid less for the rest of the year so your employer can pay you for a couple of weeks when you aren't doing anything for him. Are we to presume that we're so immature or over indeted that we can't budget well enough to go a week without pay without missing some kind of payment?

Its irresponsible to offer this idea to politicians because they're likey to do anything no manner how hair brained to get votes of people that don't know better, yet are still allowed to vote.

jader3rd's picture
jader3rd - Aug 8, 2012

@Austrian School
"Rarely is anything that needs to be mandated a good idea. If it was a good idea, you wouldn't have to force people to do it, they're do it voluntarily."
Yes, but there are times when it's a good idea in the long run, but not a good idea in the short run. The problem is that corporations are practically forced to always look in the short term (it's one the reasons why they're not people). This may be a good idea, and seems to have been proven to be so. The problem is that people doing "bad ideas" may be able to beat out the "good ideas" in the short term, thereby not allowing the good ideas to come to their full fruition.

deserthackberry's picture
deserthackberry - Aug 7, 2012

I work for a hospital in a small town in Texas. We're supposed to get 21 days "paid time off", but we have to use that not only for sick time but for 6 mandatory holidays as well. My boss also requires that we use PTO for appointments (doctor, car repair) rather than making up the time, which also eats away at what's left for vacation. Since I had to use 5 days to move here, I'll be lucky if I can take a week off at Christmas to see my family. Next year, I probably won't be allowed to take off at Christmas at all since it won't be my "turn".

DR's picture
DR - Aug 7, 2012

Sometimes Bob gives us worthy essays. This is not one of them. He just told us that a mandatory paid 3-week vacation will improve the economy, but (1) he doesn't tell us where that money is coming from, and (2) fails his course in logic: if 3 weeks will help, then 4 weeks will help even more. How about 5 weeks? C'mon Bob, you blew this one, badly!

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