Question

Discuss the major differences of European welfare states and the American welfare state? What is the most striking difference? What kinds of conversations might you have with family or friends about this? How will you feel safe?

Answer 1

Europeans have developed great welfare states over the past century, while the US has maintained a much less generous program. While America spends about 11 per cent of its national income on social services, France spends nearly twice that amount; Nordic countries spend even more. Relative to GDP, Europeans spend more than five times on unemployment benefits and other labor market services than Americans do. Not only do Europe invest more on social services but they also regulate more or less effectively in an attempt to shield workers from corporate interests

Pension laws in Europe require early retirement, historically with different benefits for both public and women workers. Throughout Europe with complete benefits, it is not uncommon for men and women to age throughout their late 50s. Many countries seek to reform these laws slowly but face very strong resistance from labor unions dominated by older employees and retirees. More than one European government has collapsed over retirement changes, or has had to suffer lengthy periods of civil turmoil over fairly minor reform attempts.

The disparities in spending and legislation have a significant effect on how Americans and Europeans spend their lives. To begin with, the Americans work in the market place for much longer hours than the average European worker. Moreover, labor force participation in the United States is higher than in most European countries, and it is extremely small in Italy. In the US too, unemployment is lower. Eighty-eight per cent of Americans drive to work in a public car; higher taxes on European welfare, higher taxes on gas and better transport make commuting more normal

Some of the most striking discrepancies between the US and Europe and, in particular, those related to social security and healthcare stem from different ways of thinking, different philosophies in the broadest sense of the word. Americans believe the poor are stuck in poverty; the same is claimed by 60% of Europeans. 60% of Americans think poor people are lazy; 26% of Europeans share that opinion. Yet differences of opinion far outweigh the economy. Several surveys show that approximately 60% of Americans claim faith is very important; 11% of French people hold that opinion.

American exceptionalism is heterogeneity among ethnic groups. Governments redistribute fewer as ethnically diverse nations of their populations, and the US is much more diverse than any European nation.