Sunday 24 January 2010

Krugman weekly

Learning From Europe
By P. Krugman, Spanish version in Economic2b

1 comment:

Andrea García - Chamón Brígido said...

Health care reform creates an important debate in the EEUU. Paul krugman says that there are two points of view.
On the one hand there are politicians (most of them) who think that giving more importance to social care will stop the economic progress. On the other hand, the author argues that thinking that the social democracy of Europe determinates a stagnant economy is a prejudice. He explains this using many examples from different economic fields.
First, economic growth. There is a difference between Europe and USA in the global GDP. But if we look at per capita GDP (which describes living standars) the difference is very small.
Secondly, technology. Nowadays, Europe has caught up with USA in this field.
Thirdly, unemployment. Although, Europe has higher unemployment rates, if we look at the number of unemployed people between 25 and 54 we realise that there isn't almost any difference.
Finally, taxes. These are higher in European countries but a part of them is dedicated to social care which is universal.
In conclusion, Europe demostrates that social justice and progress can go hand in hand. The aunthor suggests that American politicians should give up there prejuduces.