Medicaid and the Eurozone Crisis: Beware the Wages of Sin
George Mason University's History News Network has a new blog called Mythic America which seeks to examine current events through the lens of myth. This may be one DUers want to bookmark, or add to their feed readers.
The states should reject increased Medicaid funding from Washington, now that Chief Justice Roberts has given them that option. Why? because if the federal government spends more, sooner or later you become Greece or Spain or Italy. That explanation comes from Rich Galen, a Republican strategist who was Newt Gingrichs press secretary when Gingrich was Speaker of the House.
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The only problem is that the facts dont bear out this stereotype. Theres no correlation between how productive workers are and how well their national economies are doing. If you measure productivity by GDP per hour worked, the way the Organization for Economic Cooperation and Development does, Spanish workers are more productive than those in Finland, Canada, or Australia. Italians are more productive than the Japanese or Israelis. Greeks are considerably more productive than South Koreans.
Nor is there any correlation between government support for human services and the health of the economy. Some nations are doing much better than the Mediterranean three, even though they have government-funded safety nets as generous or even more so. Places like Sweden, Finland, and Canada are hardly fraying at the seams.
Why, then, are the problems of the Mediterranean three so consistently blamed on their social safety nets? And why is this dubious explanation so rarely questioned in the American political conversation?
Much of the answer surely goes back to that fictional image of the lazy southern European who would rather lie around in the sun and drink than put in an honest days work. Its a time-honored stereotype in the U.S., part of a time-honored tradition of stereotyping.
Full post:
http://hnn.us/blogs/medicaid-and-eurozone-crisis-beware-wages-sin