Thursday, January 12, 2012

The U.S. Can Learn From Europe

Clive Crook is making some sense here:
On the other hand, Europe can teach the U.S. a thing or two about social insurance -- and not just in health care, the most egregious failure of the American economic model. Help for the unemployed has traditionally been ungenerous in the U.S. In the past it didn’t matter because the country’s flexible labor market sped people back into jobs. Now, a severe recession and a slow recovery have caused long-term unemployment to surge, and negative housing equity has made moving to find work harder. Income support and help for retraining and relocation need to be rethought. Don’t be embarrassed. Look to Europe to see what might work.
Republicans might also ask whether America is living up to the merit-society ideal. Success in the U.S. is richly rewarded and a meritocracy doesn’t concern itself too much with equality of outcomes. Fine, but a merit society ought to provide ladders out of poverty -- starting with good schools -- for those willing to make the effort. The American social contract says, work hard and do well. In one way, the country is failing to keep its promise. In America, land of opportunity, if you are born poor, your chances of staying poor are higher than in Europe.
The trade-off between economic vitality and economic security cannot be eliminated. But its terms can be improved in the U.S. and Europe, if each pays closer attention to the other. My watchword in this is a maxim of the late Rudiger Dornbusch, a professor at MIT and one of the most brilliant economists of his generation. “Protect the worker, not the job.”
In the past, Europe tried too hard to protect jobs; the U.S. hasn’t tried hard enough to protect workers. Something for Republicans and Democrats to think about.
The idea that the U.S. is better than everybody else is one of the Republicans' dumbest ideas.  Just because some voters think the U.S. is God's gift to the world doesn't mean an entire political party needs to pander to that stupidity.  I've been amazed how many times I've read about some construction technology being used for the first time ever in the United States, only to find out that it's been used for 20 years in Europe.  What gives?  Being more like Europe isn't always an evil thing, especially when the alternative is making the country more like Mississippi or Alabama.  I'll take my chances with the foreigners.

2 comments:

  1. Here’s a dumb idea. Obama has tried to make the U.S. more like Europe racking up $4.6 trillion in additional debt in 3 years. A 43% increase since Bush left office. On the heels of that news Obama is asking for another trillion on top of that to be added to the debt ceiling. Compare that to a spend happy Bush who only managed $2 trillion in 8 years and you have to admit Democrats get it done in a big way! Obama is on pace to rack up more debt in his first term than every single President before him combined. Now Europe is emulating the U.S. as S&P downgrades 8 eurozone countries in one day. Being like Europe isn’t always evil. It’s stupid, but not evil. If the U.S. could just get entitlement happy Democrats to leave and go to Europe the U.S. would be a better place. Oh, and congratulations on such a great governor. If only other states would learn to balance their budgets we wouldn’t be in the trouble we are today.

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  2. Our governor is an idiot and an asshole. Almost every state is required to balance their budget, so balancing the budget isn't something heroic. Some do this by a combination of raising taxes and cutting spending. Others try to do it solely with one or the other. I think trying to do just one is foolish.

    As for Obama and Europe, facts interfere with your analysis. The Bush tax cuts, the wars and the economic crash which was mainly brought about by financial deregulation and debt spending brought about by economic inequality, are mainly responsible for our record deficits, not Obama trying to make us into Europe. Look at the Republican candidates for President, and their idiotic tax plans. These would drastically increase deficits, and necessitate massive spending cuts if they intended to keep deficits where they are. These are the same policies which have been enacted for the last 30 years. They didn't work then, and they won't work now.

    Thanks for your input. I consider it clueless, but thanks for sharing. Next time, let me know where you are from, I'm curious. I would guess it isn't Ohio if you think Kasich is doing a good job.

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