The DeadZone marginal Tax will rise

The great bulk of entitlement costs are born in the passage into positive income tax rates. The DeadZone rears its ugly head. The sudden expansion of centrally planned, defined benefit program raises the arbitration cost in wage settings. Each adjustment to a wage setting is made complex by its variable effects with the government benefit payment.

So, the economy set fewer wage slots, for a while, to reduce transaction costs. This doesn't last, as technology pushes for more wage setting that arbitrate the entropy frontier. The puzzle is the process of minimalizing entitlements effects. One possibility is to bring employee health services inside the firm, the clinic approach. Then the firm has a strong case for exemptions, but the result is self selection. Then the mandate creates a buyers pool for the retail clinic which have economies of scale. A puzzle for me.