Re: Let\'s get it started: USA vs. Europe
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The European model works well for the present. But it is unable to adapt. It can't meet the challenge of global capitalism and the inflow of new labor from previously socialist countries (China, India, Eastern Europe). It's anti-immigration stance has also lead to an aging population. The problem with Europe isn't the present, it's the future.
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Agree completely that the current French and German models does not fit the future. The smaller countries though have adjusted. Norway, where I live is much more prepared for globalization than i.e. US (i.e. our textile factories closed down 20 years ago).
The problem which many European countries does not seem to grasp with globalization is that the value of your unskilled labor goes down and thus the fixed wages settlement is senseless since it makes those unemployed. My solution to this is to make all income below $20k annually tax-free.
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