Long term unemployment's long term effects

Being unemployed for a long time costs you more than just money. Did the Recession Make You Stupid? - Bloomberg:

Those effects seem to be long-lasting. Income setbacks during a recession can stay with you throughout your career -- for example, studies of people who graduate into a recession show that even decades later, they’re not earning as much as people who graduated into sunnier environments. But a new study from Europe seems to show that even cognitive declines are persistent

This makes the case against what I call 'proxi-socialism' all the more stronger. The government has instituted policies that redistribute wealth not by taxing it and handing it out but by changing the rules of the market place to force individual consumers and employers to redistribute it. Consumers of health care are forced to subsidize the healthcare consumption of people that use the mandated benefits that insurers must include in any package of benefits they offer and businesses must provide a minimum level of benefits and wages to anyone whom they choose to hire. These things drive up the cost of labor and, consequently, result in less labor being purchased or, as it is usually put, more unemployment.