Wednesday, May 28, 2014

Krugman: How American Capitalism Fails—and Northern European 'Socialism' Succeeds—at Job Creation

From Alternet:  http://www.alternet.org/economy/krugman-how-american-capitalism-fails-and-northern-european-socialism-succeeds-job-creation

And why that's not a story the mainstream media likes to tell.

By Janet Allon May 26, 2014

Paul Krugman wrote his column this morning in the New York Times from Europe, a place which—conservatives like Paul Ryan would like you to believe—demonstrates the complete failure of the welfare state. That's because, as Krugman points out, "Our political discourse is dominated by reverse Robin-Hoodism — the belief that economic success depends on being nice to the rich, who won’t create jobs if they are heavily taxed, and nasty to ordinary workers, who won’t accept jobs unless they have no alternative."

France, a country that the American media and conservatives particularly love to bash, is having particular success in employment rates. Krugman reports this "startling, little-known fact: French adults in their prime working years (25 to 54) are substantially more likely to have jobs than their U.S. counterparts."

Hmmm. There's a story you won't hear told in the mainstream media.

He continues: 
It wasn’t always that way. Back in the 1990s Europe really did have big problems with job creation; the phenomenon even received a catchy name, “Eurosclerosis.” And it seemed obvious what the problem was: Europe’s social safety net had, as Representative Paul Ryan likes to warn, become a “ hammock” that undermined initiative and encouraged dependency.

But then a funny thing happened: Europe started doing much better, while America started doing much worse. France’s prime-age employment rate overtook America’s early in the Bush administration; at this point the gap in employment rates is bigger than it was in the late 1990s, this time in France’s favor. Other European nations with big welfare states, like Sweden and the Netherlands, do even better.
What about young people? Doesn't America, with all of its problems, still kick France's ass when it comes to the employment rate of those younger than 25. Yes, Krugman concedes. Then he wonders if that is something we should be bragging about, since it is certainly due in part to the fact that French students receive a lot more financial aid for their education than American students do, so they are not immediately saddled with huge debt to work off, much less work their way through school.

Continue reading at:  http://www.alternet.org/economy/krugman-how-american-capitalism-fails-and-northern-european-socialism-succeeds-job-creation

No comments: