Resilience of the welfare state flummoxes the free marketeers (best performing economies)

[depakid]

Nations with generous social welfare programs are the world's best economic performers, writes Fred Block.

The global economic crisis that peaked in 2008-2009 has so far failed to resolve the decades-old battle between two competing political philosophies - "free market" liberalism on the one side and social democracy on the other. Some observers expected that a global financial crisis sparked by lax regulation in US markets would discredit the free market position.

But while the economic crisis did produce Barack Obama's surprising election victory, the continuing weakness of the economic recovery from the Great Recession, especially in America, has given the free marketers a new lease of life.

Their complaints about too much government spending are once again the dominant voices in the global economy. And their voices are about to be heard in Sydney as well.

The Mont Pelerin Society - the elite international group of theorists who have been the main proponents of the free market faith since 1947 - is coming to Sydney for a major meeting next week, where they will be joined by the former Australian prime minister John Howard.

Social democrats, on the other hand, have had a much lower profile; they have been on the defensive for the past 30 years. Even though many of the social democrats were fiercely anti-communist, their cause was also discredited by the fall of communism in Russia and Eastern Europe.

As faith in government declined, Sweden, Norway, and the other Scandinavian social democracies were widely seen as unhealthy societies, burdened by too much government and excessive taxation. It seemed inevitable that they would give up on their old-fashioned ideas and finally jump on the free market bandwagon.

But here is a surprise. While the Scandinavian social democracies have made a few small adjustments in the generosity of their social welfare benefits, most of the welfare state remains in place.

These nations still have the most generous social welfare programs on the planet. Despite the claims of the free market ideologues, these nations have compiled the best economic performance statistics of any nations in the world over the past 20 years. They have the lowest levels of inequality, the fewest children living in poverty, the highest rates of union density, and they have also had more rapid economic growth, more creation of new jobs by small entrepreneurial high-tech firms, and more vibrant innovation sectors than most other advanced nations.

More: http://www.smh.com.au/opinion/society-and-culture/resilience-of-the-welfare-state-flummoxes-the-free-marketeers-20101003-162kg.html

[Rex]

1. Yes it is the great truth corporatist don't want you to know about.

It is why GOPukers keep their children and anyone they can fool into believing the free market will magically grant them a wonderful standard of living. All lies of course.

[mediaman007]

2. Perhaps they are their brother's keeper!

[Amonester]

3. Countries where ordinary people and workers are allowed to have enough money

to live decent lives, have free, preventive healthcare services, universal public education, a tax code to which the wealthiest contribute according to their income status are performing better than the corrupt capitalist systems?!?

People there can buy the crap corporations sell...

What a concept! :sarcasm:

[depakid]

4. +1

Multiplier effects.

[Amonester]

5. GO VICKINGS! =D

Work Schedules

Sweden: Corporate business normal working hours are between 8:30-17:30. Almost everybody leaves the office around 17:30. Working overtime is your own decision. It is really an exception, and very well appreciated. You almost never work on weekends. Working time is 40 hours a week.

Salary Level

Sweden: Salary level is standardized, linked to your graduation date and the kind of position you have in the company. Statistical information on salary levels is well documented and provided by the labor unions. The Unions support their members in their negotiations to help them get a more successful career path. However, if you are not a member of the Union, you don't have access to this information and you often get a lower salary offer. If you want more you have to fight for more. There are always special deals if you are wise enough to find them.

Taxes

Sweden: Taxes are proportional to your salary level. Therefore a salary increase might, in the end, not appear to make a big difference in actual income.

Vacation

Sweden: By law the minimum amount of vacation you can take is 5 weeks per year if you get paid for overtime. If you do not get paid for the overtime you work then you take 6 weeks per year.

Maternity leave

Sweden: The maternity/paternity leave is a full-time leave for up to 18 months per birth (12 months at 90% of your salary and the following 6 months at a standard maternity allowance. One has the possibility to choose part-time working. For example, one may prefer to work 50% of the time (4 hours a day), so the benefit will extend for a full 36 months period! The maternity leave is for either parent, the mother or the father, so they have the freedom to decide what is best for themselves and their child or children. The most common situation is that the mother takes a full time leave and the father is obliged to take as a minimum one month of leave (otherwise the parents lose one month allowance!)

Commuting between home and Work

Sweden: Normally people take public transportation to the office. The system is scheduled, clean and safe. People usually read during the trip. The trip is easy and according to plan, except in wintertime, when heavy snow can cause traffic delays in the traffic flow.

Working environment

Sweden: The environment is serious and silent. People work at their desks, normally in private offices. Privacy is very important. There are coffee machines in the corridors and people normally take a short coffee break in middle-morning and another one in the afternoon, with the other team members. Each floor includes a Sovrummet (a bedroom) where you can lay down and relax if you need to: perfect for pregnant women or when you are simply not feeling well!

Management Style

Sweden: Supportive and delegative. The decision making process is based on consensus.

Being a woman

Sweden: The superwoman culture appears to have originated in Sweden! Women are considered strong and very well respected. There is no difference in treatment; everything is based on relationships between equals.

[the redcoat]

6. Well, sure they're doing better

but you're not taking into account how God specifically chose America to be the omnipotent superpower of the world forever.

If you did, you would see that economic prosperity, equality, happiness, and factual data are obviously all secondary to being infallible.

[pnorman]

7. "Mont Pelerin Society"

http://en.wikipedia.org/wiki/Mont_Pelerin_Society

That outfit had cone under serious discussion, in a book on the conservative movement that I had read several months ago. I'll try to locate it again, and if this thread is still active, cite it here. As I recall, it would be very pertinent to this discussion.

[pnorman]

8. "Invisible Hands" by Kim Phillips-Fein

I have it in Audible.com format, so there's no index for me to search for that society. But Google yielded some hits, and here's one: http://open.salon.com/blog/marygrav/2010/08/19/aeiinvisible_hands_of_the_neocons_killing_the_middle_class2

[OHdem10]

9. Regulated Capitalism gave this country some of its most prosperous

years.

They participate in Trade but manage their trade. Not as much
outsourcing.

[RainDog]

10. k&r

data, neoliberal economists.

eat it.

[Chulanowa]

11. Who needs data when you have magic? n/t

[depakid]

12. Something of a common theme around here lately

Who needs data when revisionist history or outright lies will do?

[mod mom]

13. neo-libs just like their buddies the neo-cons are out for one thing:

self enrichment. :mad:

Excellent article, thanks for posting. I posted it on FB so that some selfish libertarian friends will see it.

[malaise]

14. K & R

The truth shall set us free

[gratuitous]

15. Well, sure, if you want the economy to work for more people

But if you're frantically trying to drain the national treasury into the overstuffed pockets of the wealthy, then this whole "social democracy" model just isn't going to work. Too much of their money is finding its way into ordinary people's hands, and you can't scare them so easily anymore. Panic is good for the overclass.

It's a good thing this article is published in Australia; so much easier for the stateside popular media to ignore it. Hey, did you know that the mean old Democrats are about to raise taxes on Paris Hilton's "earnings"? You should be outraged!

[jpgray]

16. The more extreme one's free market dogmatism, the more dues one pays to flummoxory

It's a wonder they haven't cornered the market yet (which I'm sure disappoints them).