Non Sequitor Economic Thinking

It has come to my attention that there are some out there who are ashamed of our economy. According to their analysis, the countries of Europe have a more "equitable" and "fair" economy. For instance, Europe retains capitalism while providing essential services such as health care and welfare. America, in their opinion, leaves the poor to rot.

This view is greatly mistaken for the following reasons.

1) Europe's welfare state has severely slowed their economic growth. Economists are forecasting Europe to grow at a collective 1.5% while America is forecasted to grow at 4-4.5% (depending on how bad you think the oil situation is). Europe has a much higher rate of natural unemployment than the United States does (8-12% in some countries while the US is at 5-5.5%)

2) WHile Europe has a vast social safety net, that net is becoming almost unaffordable. France and Germany have broken the agreement to keep their budgets balanced within 3% of GDP and are being killed by their social service programs. For instance, France had to get rid of their inflation adjusted living wage law because it is killing the private sector. They are going to let inflation kill it off. Likewise, France had to repeal their 35 hour limit on the work week law because it is likewise destroying private enterprise

3) Health Care in Canada and in many European countries is becoming inefficient. In Canada, the average wait for an MRI or a heart bypass is close to 6 months.

This is not to say that America is perfect or that no reform is needed. But when we do choose to reform sectors of our economy, like the Health care sector, we should do so keeping in mind that we want to improve our system WHILE avoiding the pitfalls of the reforms in Canada, Britain, and to a certain extent Germany.

Why do these people continuing to whine and moan then?....

Because the reforms that would have the best chance at success are market orientated reforms that would vest more control in the people than the government. Their opposition stems from an ideological presupposition against freedom of the individual.