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I think this is why social democracy works so well for reducing poverty. When I compare poverty relief programs in the US with how it works in Scandinavian coun
by jernfrost 8y ago
I think this is why social democracy works so well for reducing poverty. When I compare poverty relief programs in the US with how it works in Scandinavian countries (I live in Norway) I notice a very big difference in how it is delivered.
The US uses a large patchwork of a multitude of smaller means tested programs. You frequently read about how people are telling each other about what programs one can apply to and how. In short becoming poor in the US means navigating a maze of small programs and understanding and having the energy to apply to all of these.
In a social democratic system most of these small means tested programs are replaced by large non-means tested programs. They aren't really programs but rather universal rights for everyone. There is much less to navigate.
1) Everybody gets heavily subsidized child care. There is nothing to apply for. Which reduces the economic burden of having children.
2) Health care while pregnant or anything related to children is completely free. For grownups you only pay small fees for doctors visits. You can't get into financial ruin over cancer treatment e.g.
3) Once you pay above a certain level for medication you don't pay anymore. There is a cost roof to the patient. Which prevents financial ruin due to medication. There is nothing to apply for or be eligible for. It just kicks in automatically.
4) If you are unemployed and struggle with getting a job, you get government aid to retrain or get new skills. It is not means tested.
5) Education is free and you get very favorable loans and stipends, everybody get the same regardless of income. It is only the conditions of the study which affects it. E.g. if you live away from home you get more than if you live at home. If you chose to study abroad you get more e.g. to cover tuition. E.g. I studied in the US and the Norwegian government payed most of the tuition. It means even if you are poor getting a decent education is not a major obstacle. You don't have to hunt for scholarships and spend weeks filling them out.
6) Sick pay and unemployment benefits are quite generous so you don't go to economic ruin because you get sick or unemployed for a while.
Of course some people do fall between the cracks in social democracy as well. But it takes a lot more effort to end up in poverty. More things need to go wrong. Typically the ones who end up on the street are drug addicts and alcoholics. But even most of them are offered accommodations.
However I still think universal basic income is worth exploring. Our system is by no means perfect. A significant problem is that because the welfare services are so generous, they are expensive and there is a lot of worry about abuse, especially from foreigners who have a more cynical view towards welfare programs because they have grown up in states where the common man in screwed over in every possible way. Exploiting the system then does not seem unfair. This lead to more monitoring and a harder push towards means testing and requiring certain actions by the recipient. They are very pushy on unemployed people e.g. They have to demonstrate that they are actively seeking work. If you are sick for longer periods you need meetings with a medical professional and the employer to come up with possible arrangements that could allow you to function at work.
- xstartup 8y agoEven if you apply Norway's policies to any other country, it will not magically become as prosperous as Norway. It's a resource-rich nation, highly homogenous and part of EEA. Norway is able to ship low-value hazardous work to poor European countries without paying for their welfare/infra expenditure. Imports janitors and healthcare (the work which local aren't willing to do like wiping the ass of disabled people) workers from East Europe. It's equivalent is of Uncle scourge swimming in gold and attributing his wealth to his ability to swim in gold. Open your doors for third world low skilled immigrants then we'll see how much progress Norway is able to retain.
- vidarh 8y agoAs someone else pointed out: The US is wealthier. If it was down to wealth alone, we'd expect the US to have far fewer problems.
- xstartup 8y agoWealth, relatively small population and homogeneity (cultural/religious/economic) does make a lot of difference, See: Qatar. US might be wealthier (I've not vetted this statement) but it still doesn't have many of the above.
- vidarh 8y agoWell, yes, because you've just included a significant part of the solution (economic homogeneity) as one of the criteria. When you look back at Norwegian history over the last century, a lot of the shift happened in line with the rise of the labour movement and the rise of the welfare system, and a lot of the beneficial outcomes were visible before the oil revenue even started. Norway as a result got one of the flattest income distributions in the world, and has relatively high degrees of social mobility, and a culture where the labour movement combined with religious groups (in what some might call a rather unholy alliance) promoted the ideal of modesty. E.g. in Norway sending your schools to private schools long held a significant stigma. At the same time the US started moving in the exact opposite direction: Executive salaries as a multiple of workers salaries started skyrocketing etc..