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If the conclusion of this is true, why aren't we seeing grand scale innovation and entrepreneurship from European countries that are most certainly very strong
by borgia 12y ago
If the conclusion of this is true, why aren't we seeing grand scale innovation and entrepreneurship from European countries that are most certainly very strong welfare states?
Why instead are we seeing massive amounts of unemployment?
There seems to be a delicate balance to strike to get this right. The fact of the matter is that in many European countries someone who is not working can enjoy the same standard of life as someone who is, except they don't have to get up in the morning to earn it.
Those benefiting from these states likely have very little incentive to rock their own boat of comfort by stepping out and taking on debt/risk for more of a reward. Especially when you throw high taxation into the mix, where that risk/reward ratio is further skewed because even if you do very well you'll end up paying the state a huge amount of tax, to then support the same welfare system.
In the US, on the other hand, you've a significantly less generous safety net and I would imagine the vast majority of those who fall into it from a more grand place - such as being securely in the middle class - would fight more to get out of it.
That's intuitive anyway.
Where the argument starts to fall apart is when you look at all the young tech entrepreneurs, whether it's hardware or software, or those starting up new media companies, or whatever, very few seem to come from the type of background where if they failed they'd end up on food stamps.
Are they better risk takers because they have a better, non-government provided safety net, perhaps? Which then goes on to conflict with the enhanced safety net available in Europe and the comparatively low level of innovation and entrepreneurship.
My conclusion would be that the government provided welfare is likely not a factor in determining innovation and entrepreneurship and that there's other, less obvious, factors at play.
- TazeTSchnitzel 12y ago> Why instead are we seeing massive amounts of unemployment? Because enterpreneurialism is not the sole factor affecting economic growth, and European countries are currently dealing with various other issues.
- michaelchisari 12y agoThe strongest welfare states (and by that, I also mean the best managed) are the Scandinavian countries. And the amount of culture and technology that comes out of Sweden alone is extraordinary for their population size.
- MollyR 12y agowow really, I know of ikea, but do you mind linking me to some references ?
- michaelchisari 12y agoTech: Skype, Spotify, H&M, Neo4j, Mojang Music: Tove Lo, Robyn, The Knife, Miike Snow, Those Dancing Days, Icona Pop, Lykke Li. In fact, pop music around the world has been shaped and written by Swedish producers and writers, everything from Brittany Spears to Katy Perry. And look at all the Swedish films that America loves to remake. Girl With The Dragon Tattoo, Let The Right One In, etc. And remember, this is just Sweden, a small country of 9 million people in the middle of nowhere.
- s73v3r 12y ago"If the conclusion of this is true, why aren't we seeing grand scale innovation and entrepreneurship from European countries that are most certainly very strong welfare states?" Most studies show European countries having far higher rates of small business and family business ownership than in the US. " The fact of the matter is that in many European countries someone who is not working can enjoy the same standard of life as someone who is, except they don't have to get up in the morning to earn it." This is entirely false, and spoken from someone who has no idea what they're talking about.
- the_why_of_y 12y ago> Why instead are we seeing massive amounts of unemployment? In 2010 the unemployment rate in the Eurozone and the US was about the same. Since then in the US it reduced by 2.5% while it grew by 2.5% in the Eurozone. http://www.businessinsider.com/chart-us-and-eurozone-unemployment-rate-2013-5?IR=T http://www.businessinsider.com/chart-us-and-eurozone-unemplo... The reason for this is the austerity policies forced upon the Eurozone by adherents of a particular economic ideology, whereas the USA had fiscal stimulus, as well as regular fiscal transfers from the richer states on the coasts to the poorer ones in the center and south via the federal budget. > The fact of the matter is that in many European countries someone who is not working can enjoy the same standard of life as someone who is The fact of the matter is that in Spain unemployed citizens are looking for food in garbage bins. How many working people do you know who do that? http://www.nytimes.com/2012/09/25/world/europe/hunger-on-the-rise-in-spain.html http://www.nytimes.com/2012/09/25/world/europe/hunger-on-the...