The Effect of that kind of policy was already tried in Italy to a certain extent. The result was that For every new "Temporary Investment" (meaning a project that needed 1-3 years of pushing) Noone was hiring and everyone, no exceptions was "renting" bodies from "consultancy firms". The result was distatrous for the companies that needed to pay Consultancy prices because they could not afford to hire without being able to downsize after 1-3 years and the employees who ended up in the consultancy sweat shops because they were pratically the only ones who would offer to hire. The salaries stagnated because the market stagnated (and still Italian Salaries in Tech are among the lowest in all EU). The only ones who profited from this were the middle men. Many still see this kind of a policy as something to be admired but I would rather have a vibrating market and change jobs every 2-3 years rather than "settling for life" like the proponents of this system predicate at a sweat shop.