The economic advantage assumes everyone's pay will be pro-rated back to 36 hours, regardless if they are hourly or salary.
The return is theoretically 10% more employment, since employers will hire extra people to work those lost 4 hours. You'll see employment dividends almost immediately.
Will people who have jobs complain that they're making 10% less? Sure they will. But they can also breathe a sigh of relief that their future employment picture is a little more rosy. And... in fact, they won't lose a full 10%. It will probably be closer to 8 or 9% when you factor in tax advantages.
I would gladly take a 9% haircut on my salary if it means my neighbor, my best friend, and my sister all received jobs soon. (And yes, my neighbor, my best friend, and my sister are all currently unemployed.)
What am I missing here?
Sometimes simple solutions are really simple, with no hidden catches.
Oh, and for those who fear a permanent adjustment of the work week backwards, you could use sunset provisions to return to a 40 hour week in 3 years, or some such length of time.
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