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The US way was much smarter...although not smart either in ways. In Europe, you have companies that are functionally insolvent, that will never trade profitabl
by hogFeast 6y ago
The US way was much smarter...although not smart either in ways.
In Europe, you have companies that are functionally insolvent, that will never trade profitably again, and which are being paid not to close. I know of companies where I am that are starting to look at letting hundreds of people go...those people were paid for two months by the govt.
And why? A good chunk of these people needed no help at all. The point of an unemployment system is that you focus payments on people who actually need help (btw, you can run an insurance system too...but some European countries that went this way don't have the tax base or economic structure for a true, income-substitution system). It is a typically European solution which is why some countries in the region regard 10% unemployment as a huge triumph.
What most European countries have done is fire all the bullets in their gun in the first 10 seconds of a battle that will go on for a long time...this is particularly foolish given how much debt some of these countries need to roll over this year.
Also, the US "money for everyone" program was equally stupid for the same reasons.
- throw7 6y agoWell, just want to point out, "money for everyone" is not true. I'm sure there are workers here on HN that did not receive any due to income.
- nabla9 6y agoUS economists think that US way is stupid, corrupt and inefficient. It's better to do it in European way. https://promarket.org/2020/03/24/economics-and-finance-professors-from-major-universities-write-to-congress-bail-out-people-before-large-corporations/ https://promarket.org/2020/03/24/economics-and-finance-profe...
- hogFeast 6y agoYep, that it is typical of US economists who don't understand much about Europe (it typically doesn't extend beyond: so we can have our cake and eat it).
- mrep 6y agoHow so? That article is arguing for what they think the US should do and it basically matches what the US did in fact do. The CARES act was by far a bailout to citizens directly through the stimulus checks and the extra $600 a week in unemployment and indirectly by funding payroll for airlines and small businesses. The rest is basically loans which have to be payed back and funding for hospitals and state governments.