Wednesday, January 19, 2011

The job-killing welfare state

US unemployment, on this measure, is in the double-digit range — significantly above the global average of 7%. Meanwhile, Germany, with a much stronger social safety net, has unemployment of less than 5%. (Remember, these aren’t official national statistics, they’re Gallup’s attempt to apply the same yardstick to all countries.)

Isn't the tradeoff supposed to be that we get a more dynamic economy in exchange for the thinner safety net?

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