Krugman: Europe’s Secret Success

[eridani]

http://www.nytimes.com/2014/05/26/opinion/krugman-europes-secret-success.html?hp&rref=opinion&_r=0

The reality, however, is very different. Yes, Southern Europe is experiencing an economic crisis thanks to that money muddle. But Northern European nations, France included, have done far better than most Americans realize. In particular, here’s a 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.

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.

Now, young French citizens are still a lot less likely to have jobs than their American counterparts — but a large part of that difference reflects the fact that France provides much more aid to students, so that they don’t have to work their way through school. Is that a bad thing? Also, the French take more vacations and retire earlier than we do, and you can argue that the incentives for early retirement in particular are too generous. But on the core issue of providing jobs for people who really should be working, at this point old Europe is beating us hands down despite social benefits and regulations that, according to free-market ideologues, should be hugely job-destroying.

[House of Roberts]

1. 'Old Europe' has done a better job not selling out their citizens

with crooked trade deals. Trading with countries who pay their workers so little they can't buy your products is selling out your citizens.

[Demeter]

2. Old Europe is much more into job-sharing

Instead of insisting that one person do the work of two, they insist that two or even three share the load, ensuring that there's time for other things in life than working oneself into health problems and an early grave.

And those people get paid a living wage, with benefits.

However, if the money crisis isn't solved, Northern Europe will fall of the same cliff that Southern did.

[abelenkpe]

3. Wish we had job sharing here

And all jobs paid a living wage with benefits.