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> During covid, the United States was more willing to just directly give people money, while Europeans focused on trying to protect already existing jobs. My p
by bryanrasmussen 2y ago
> During covid, the United States was more willing to just directly give people money, while Europeans focused on trying to protect already existing jobs.
My perception, based on Denmark, Germany, and Italy is that European countries have a much stronger welfare system than the U.S therefore it makes sense not to worry so much about giving people money, if they lose the job they won't starve, and focus on keeping jobs active.
- JumpCrisscross 2y ago> European countries have a much stronger welfare system than the U.S therefore it makes sense not to worry so much about giving people money That's one interpretation. The other is that Europe is more averse to risking firm collapse than the U.S., despite its social welfare system. It isn't a different balance, it's a fundamentally lower setting on the risk-reward spectrum.
- bryanrasmussen 2y agoI'm not understanding your argument that giving people money means that the U.S is more willing to risk firm collapse, or that by not giving them money Europe is more averse? What's the idea?
- JumpCrisscross 2y ago> giving people money means that the U.S is more willing to risk firm collapse, or that by not giving them money Europe is more averse America is okay letting firms collapse, despite having a weaker safety net. After the financial crisis, where we were protective of our industry, we became protective of our peoples' livelihoods. Europe has a safety net. But it remains protective of its industry and their captains. That just produces a different risk-reward mix and tolerance to economic churn.