There are pros and cons. The ability to lay someone off quickly means someone in the US can risk hiring a bunch of people on a risky bet - if/when they give up on the project they can let the people go and cut their losses. Some of those risky bets pay off though and the people are not laid off.
Note that I said lay off not fire above. There is an important legal difference.
Note that I said lay off not fire above. There is an important legal difference.