Trump News Of The Day, 3/28/2017
17 hours ago
“For one month, I became the ‘micro-entrepreneur’ touted by companies like TaskRabbit, Postmates, and Airbnb. Instead of the labor revolution I had been promised, all I found was hard work, low pay, and a system that puts workers at a disadvantage.”What’s really going on is the desire of businesses to chop wages and benefit costs while also limiting their vulnerability to lawsuits, which can happen when salaried employees are mistreated. The burden of economic risk is shifted even further onto workers, who lose the security and protections of the New-Deal-era social insurance programs that were created when long-term employment was the norm.
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.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.
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.