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FOLLOWING THE EUROPEAN UNION

 
 
nimh
 
  1  
Wed 5 Oct, 2005 08:10 am
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?
0 Replies
 
nimh
 
  1  
Wed 5 Oct, 2005 08:11 am
Thomas wrote:
May I ask what your current position is regarding the comparison of European and American unemployment rates? In particular, do you still think the superiority of the USA over Europe is mostly a statistical artifact?

See my latest (admittedly overlong) post.
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nimh
 
  1  
Wed 5 Oct, 2005 08:20 am
This is unrelated - but I came across it while looking up those unemployment rates, and it's too interesting not to post it.

(Also because, from what I remember, it's surprisingly hard to find this kind of graph on the whole period since 1989 - not to mention one that includes the 'old' EU in comparison).

http://www.multicultureelplein.nl/assets/mcplein/extra/images/real_gdp_since89.gif
0 Replies
 
Thomas
 
  1  
Wed 5 Oct, 2005 08:25 am
nimh wrote:
Detect a pattern?

Yes. You left out Hungary, which is ideologically inconvenient for you, even though I think you're somewhat aware of the place. Razz What do you think of my suggestion to drop the cherry-picking on both sides and compare large aggregates, such as the USA and the EU 15?
0 Replies
 
nimh
 
  1  
Wed 5 Oct, 2005 08:27 am
Sorry, that graph is from this publication: Where Is the Engine of Growth in the World? Role of the Transition Economies, by Jan Svejnar
0 Replies
 
nimh
 
  1  
Wed 5 Oct, 2005 08:37 am
Thomas wrote:
nimh wrote:
Detect a pattern?

Yes. You left out Hungary, which is ideologically inconvenient for you, even though I think you're somewhat aware of the place. Razz

I didnt actually do that consciously. Just started from the north, gave up when I thought I had enough examples. <shrugs>

(I looked it up now - it's 5,6% according to the same source. I wouldnt ever have thought; I was under the impression that Hungary was just as bad as the others).

Dont see how it makes any difference either way, though. If unemployment rates in the teens are rampant across most of Central Europe, all countries that have not adopted West-Germany's welfare-state model, then blaming East-German unemployment rates that are right in line with them on the adoption of the welfare state model remains nonsensical.

Thomas wrote:
What do you think of my suggestion to drop the cherry-picking on both sides and compare large aggregates, such as the USA and the EU 15?

I dont think its fair, as I already specified in my last post, and I hardly think its cherry-picking to insist, when the object is to compare the social-democratic-type welfare-state model of economy with the libertarian-type US model, on actually choosing economies that are accepted to represent that model.

Basically, you're asking me to repeat myself. Let me filter out the East-European digression to clarify the line of my argument:

nimh wrote:
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. [..]

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?
0 Replies
 
nimh
 
  1  
Wed 5 Oct, 2005 08:44 am
I'm kind of impressed by that Real GDP graph, by the way. 30+% increase in Real GDP in 15 years? Sounds comfortable enough; hardly indication that the economic model is "unsustainable".

(EDIT: Course, I realise that what I'm doing in this post is exactly what I noted to consider unfair in my previous post: using the overall EU numbers as synonym for the welfare state economic model.)
0 Replies
 
Thomas
 
  1  
Wed 5 Oct, 2005 09:24 am
nimh wrote:
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?

It might, but I a look into the "Statistisches Jahrbuch des Deutschen Bundesamtes" did not confirm your figure for West Germany. The statistic itself does not seem to be available at destatis.de, but sozialpolitik-aktuell.de has it plotted here. The 2004 figure is West Germany: 9.4%, East Germany: 20.1%, Germany as a whole: 11.7%. I guess that adjustment to the OECD standard would bring the west German figure down to 8.2%, but not to the 6.X% that you quoted earlier.

Your other point -- that not all EU countries are what you would call social democratic -- seems fair to me. Would you consider it fair if we calculated a population-weighted average of the countries you counted in, then compare that to the corresponding USA figure?
0 Replies
 
cicerone imposter
 
  1  
Wed 5 Oct, 2005 10:40 am
There seems to be a corralation between high employment rates and high poverty rates. I'm wondering if we're looking at unemployment rates in isolation without considering its relationship to poverty. Also, there are other issues not being addressed such as the age of the population, and social welfare benefits provided by the country.
0 Replies
 
nimh
 
  1  
Wed 5 Oct, 2005 11:19 am
Thomas wrote:
It might, but I a look into the "Statistisches Jahrbuch des Deutschen Bundesamtes" did not confirm your figure for West Germany. The statistic itself does not seem to be available at destatis.de, but sozialpolitik-aktuell.de has it plotted here. The 2004 figure is West Germany: 9.4%, East Germany: 20.1%, Germany as a whole: 11.7%. I guess that adjustment to the OECD standard would bring the west German figure down to 8.2%, but not to the 6.X% that you quoted earlier.

The 6% figure comes from Walter's earlier post. I'll leave it to him to specify; can't find it back in the article he linked in.

Even an adjustment down to 8,2% compared to the US's 5% has a significant impact on the force of the argument re: the unsustainability of the welfare-state model, by the way, compared to the force it seems to have when the comparison is between 10,7% or 11,7% versus the US's 4,9%.
0 Replies
 
Walter Hinteler
 
  1  
Wed 5 Oct, 2005 11:38 am
I can't re-find the source I got that from - was mentioned in another article (from where I got the link to that page).

So I excuse for posting it.
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nimh
 
  1  
Wed 5 Oct, 2005 03:01 pm
Thomas wrote:
Would you consider it fair if we calculated a population-weighted average of the countries you counted in, then compare that to the corresponding USA figure?

We could do that - I'd do it, if I werent too lazy to look up population numbers right now. And to look up the standardized numbers (you posted a link, I think).

My guess is that the end result would show unemployment per capita in 'welfare-state-country' to be higher than in the US, but not as much higher as its made out to be. But from your POV the exercise would be strategically convenient in that the Dutch and Swedish models would be wholly submerged in the much larger German/French population pool.

Myself, when I look at those diverging unemployment rates from across 'welfare-state-country' (and that term is used relatively, of course, since none is left unreformed by now), its another question that comes up than what the per capita average would be. Its this: what did The Netherlands, Denmark, Sweden and Norway did right, that France and Belgium did wrong?

They're all markedly welfare-state oriented in comparison to the UK and the US, so that in itself cant be the explanation for either the one group's success or the other's failure.

Multiculturalism isnt it, either: Dutch cities are as multicultural as Belgian or French cities.

Its true the Dutch system was starkly more reformed in the nineties than the German one, let alone the French one - but Schroeder's Hartz/Agenda 2010 policies have made up a lot of ground, in some respects already overtaken us. And what about the Swedes, Norwegians? Did they reform anything like as strongly?

And even so, even the Dutch, strongly reformed system is still much more social than the Anglo-American one - and yet, as low an unemployment rate.
0 Replies
 
Thomas
 
  1  
Wed 5 Oct, 2005 03:16 pm
nimh wrote:
Myself, when I look at those diverging unemployment rates from across 'welfare-state-country' (and that term is used relatively, of course, since none is left unreformed by now), its another question that comes up than what the per capita average would be. Its this: what did The Netherlands, Denmark, Sweden and Norway did right, that France and Belgium did wrong?

I agree this is a good question, but would point out that there are probably similar fluctuations between regions in the US. Based on my own, purely subjective instincts, I would put your question in the same category as "What did Long Island do right that Greater Detroit did wrong?". I agree it would be useful to have a finer grained correlation plot rather than just two numbers. But it would also be more work, and you don't appear to be interested in the 'libertarian' outcome at this level of detail. So it seems to make sense to make the rough comparison first.
0 Replies
 
hamburger
 
  1  
Wed 5 Oct, 2005 07:26 pm
an article i read recently (can't remember where) pointed out that unemployment rates are calculated differently in the united states than in europe.
canada changed its rate calculation some years ago - and presto, the rate went down.

(not unlike the calculation of the inflation rate. "volatile" items are not not included in the calculation, such as : petroleum products ! of course the readings are not at all what a true basket of goods would cost, but it sure looks good.
i had an argument with mrs h some time ago when she complained about price increases and i kept talling her about the low inflation rate; so i looked it up and was surprised to see how unrealistic the calculations are). hbg
0 Replies
 
Steve 41oo
 
  1  
Thu 6 Oct, 2005 04:35 am
Excellent article here by Tim Garton Ash

Perhaps Turkish membership isnt so bad

http://www.guardian.co.uk/Columnists/Column/0,5673,1585806,00.html
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cicerone imposter
 
  1  
Thu 6 Oct, 2005 11:02 am
Steve, I agree, but it looks like the process will take it way....into the future.
0 Replies
 
Walter Hinteler
 
  1  
Fri 7 Oct, 2005 12:34 pm
Quote:
Blair and Chirac revive alliance

Prime Minister Tony Blair and French President Jacques Chirac have stressed their determination jointly to meet the challenges facing Europe.
The two leaders sought to play down their differences over the EU budget and reforms in the 25-nation bloc.


France "will deploy all its support for the British [EU] presidency," Mr Chirac said after the informal talks in Paris.

Mr Blair stressed the need to "find a way forward" together as Europe's citizens questioned EU policies.

EU leaders needed to agree on how to handle the challenge of globalisation, Mr Blair said, pointing to the emerging global power of China and India.

His call for joint efforts was echoed by Mr Chirac, who said "We are both determined to be a force of harmony for the Europe of tomorrow".

http://newsimg.bbc.co.uk/media/images/40884000/jpg/_40884024_smilingafp203body.jpg
Bonhomie was restored - but the EU lacks a common vision

Reform agenda

His talks with Mr Chirac focused on preparations for the EU summit at Hampton Court in London on 27-28 October.

The EU project lost momentum after the double blow struck by voters in France and the Netherlands, who rejected the new EU constitution earlier this year.
Mr Blair is hoping to use the rest of Britain's EU presidency - which ends in December - to introduce far-reaching reform of the EU.
But Mr Chirac has resisted UK pressure for the EU to overhaul its Common Agricultural Policy.

Mr Blair has also called for reform of the European social model of generous state benefits and employment rights, to help Europe compete with China and India.

Differences boiled over at the Brussels summit in June, when EU leaders failed to agree a budget.

At the time Mr Chirac called on Britain to contribute more generously to EU finances by giving up part of its budget rebate.

Mr Blair responded by insisting Britain's contribution had to be linked to reform of European farm subsidies, which Mr Chirac staunchly defends and which greatly benefit French farmers.

The UK argues that the subsidies would be better spent on education and technology to raise the EU's competitiveness.

The UK is anxious to resolve the deadlock over a new 2007-2013 EU budget before its presidency ends.

Since the London bombs in July, both countries have been keen to emphasise the constructive nature of their relations, said the BBC's Alasdair Sandford, in Paris.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/europe/4318080.stm
0 Replies
 
cicerone imposter
 
  1  
Fri 7 Oct, 2005 04:11 pm
It'll be interesting to see how the US Labor Department measure the unemployment from Katrina and Rita.
0 Replies
 
cicerone imposter
 
  1  
Fri 7 Oct, 2005 10:23 pm
There is something drastically wrong with US government statistics/numbers. They claim only 35,000 lost jobs in September. When Katrina hit New Orleans, a city with 485,000 people (2000 census), it's impossible that only 35,000 people lost jobs.

I'm not sure what kind of math they're using, but they haven't learned how to subtract.
0 Replies
 
Walter Hinteler
 
  1  
Sun 9 Oct, 2005 12:11 am
Today, people in Poland are voting to elect a new president, two weeks after parliamentary elections brought victory for two centre-right parties.

Two candidates from those parties - Donald Tusk of Civic Platform, Lech Kaczynski of the Law and Justice party - are the front runners.

http://img353.imageshack.us/img353/8752/polprs9ge.jpg

However, opinion polls suggest none of the 12 candidates will pass the 50% threshold needed to win outright.
In that case, there will be a second round of voting on 23 October.
0 Replies
 
 

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