Thomas wrote:Walter Hinteler wrote:So comparing one country with 15 independent countries is not comparing apples with oranges?
The difference here is what exactly?
Reduced opportunities for cherry-picking. Examples of cherry-picking in this thread would include nimh singling out West Germany because East Germany is ideolgically inconvenient for nimh and singling out the Netherlands because they are ideologically convenient.
Eh. I thought the argument I was addressing was that of neoloberals claiming that comparative unemployment rates serve as evidence for the failure of social-democratic/welfare state arrangements compared to the more libertarian US model.
OK, so what are appropriate examples to use when addressing the success or failure of the model of social-democratic/welfare state arrangements?
Greece, Portugal and Spain, all included in the EU-15, countries that emerged from right-wing dictatorship and poverty to join the more social-democratic-minded EU only at the cusp of the era of market reform? Arguable, but problematic.
Eastern Germany, which was under the dictatorial communist yoke all the decades the West-European welfare state was developed? Nonsense.
In fact, in using Eastern Germany as an example of the failure of the welfare state model Thomas commits a folly. Eg:
Thomas wrote:applied to [..] East Germany, the model has boosted the unemployment rate there to figures in the high teens. Perhaps more importantly, it has caused a pollitical fallout of driving people into the hands of neo-fascist and ex-communist parties. Neither of this strikes me as attractive..
The assertion here is that it's the West-European,
social-democratic welfare state model that "boosted unemployment in the high teens" in the former GDR.
But East-Germany's unemployment rates were not significantly different from those in the
other postcommunist countries - the very same states that are touted as "New Europe" pioneers of neoliberal dogma.
In Poland, unemployment now
stands at 19,9%. It went up from 6 to 16% during its 1990-1994 'shock therapy' era and has been in the teens ever since.
In Estonia, perhaps the most feted of market reforming states with indeed impressive GDP growth rates, unemployment
went up to 14,8% in 2000 and has been in the lower teens most ever since.
In Slovakia, unemployment
was in the lower teens throughout Meciar's rather protectionist era, and zoomed up to 17,5% since the market reformers of Dzurinda took over.
In the Czech Republic, unemployment
has increased year-on-year every year since the revolution and has now reached over 10%. (And I remember back when liberal reformers were chastising Klaus for being too scared of upping unemployment to proceed more efficiently with large-enterprise privatisation).
Detect a pattern? To blame East-Germany's unemployment rate in the high teens on the West-European welfare state, in context, is a little surreal.
The only thing more surreal, in the light of the most recent Polish election results, the recent upsurge of the Czech Republic's wholly unreformed communists and the past heyday of Meciar's far right/far left government, is to blame the in comparison limited gains for the far right and the success of the in comparison benevolent ex-communists in Eastern Germany on the same welfare state model.
Instead, I'd propose that obvious examples of 'classic' West-European welfare-state models to look at, when comparing it with the US model, would include (of course) Sweden, as well as Norway, The Netherlands, Denmark, Belgium, France, and yes, of course West-Germany.
What's cherry-picking about that?
For reference sake, according to these
IMF numbers, Sweden has 4,9% unemployment; Norway 3,9%, Denmark 5,7%, the Netherlands 3,4%, Germany (east+west) 11,7%, France 8,8% and Belgium 12,3%.
If several of those places (like West-Germany and The Netherlands) do in fact
not turn out to have materially higher unemployment rates than the US, when measured against the same yardstick, doesn't that totally pull out the rug out from underneath its use as evidence of the failure of the welfare state?
If France, Belgium and Eastern-Germany have an extraordinarily high unemployment rate but Holland, West-Germany, Sweden, Denmark and Norway do not, then how is it an obvious reason to blame the social-democratic-type economic model that all these countries share?