Tycho:
The safety net in europe tends to be much stronger than in the US. It's far easy to get out of the poverty in europe than the states (or, at least a greater fraction of the population manages to do it).
I'm not sure that this is true. There are too many factors playing into this. I doubt there is a really big difference here.
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I'd agree that there's more incentive to end up in the middle, leading to greater extremes of wealth/poverty in the US than europe, but I guess we disagree on whether that's a good thing.
I'm glad we agree on a point. The reason I think it's not a good thing is: 1) it promotes the government taking away your property to give to someone who hasn't earned it (taxes, etc.), and 2) it takes away some of the incentive to think big, and more particularly to do anything to make "big" happen because the government will take away more of your money than you can handle and still rise steadily. That's why it's called the "American Dream," not the "European Dream."
Another result of this is that smaller companies have a harder time rising to the top in Europe. We have been speaking about individual incomes, but really a key issue is rising companies (not to mention the jobs they hand out to people). So the rich/poor disparity for individuals may be higher in the U.S., but it is higher for companies in Europe and parts of Asia. For example, how many Japanese companies can you remember the name of? Sony, Kawasaki, Toyota...there are huge conglomerates...but it is unrealistic in Japan to think you can build your mom and pop shop to a major franchise because of the many obstacles in the way. It's possible...but more difficult.
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If you only care about the people who make it big, then sure, the US might be better
We're not talking about people who make it big. We're talking about those with professional careers primarily (doctors, lawyers, accountants, etc.), and those building up businesses. The professionals make less money than in the U.S. (often by as much as half), and this hurts the economy and the availability of services (and quality) because of those not incentivized to go into those professions. And also, as mentioned above, the incentive to grow business is not as much there.
Keep in mind also that, although you seem to look down on the wealthy, it is the wealthy who give the jobs to the middle and lower class. When the money of the wealthy is taken away, it is simply shifted to cutting jobs and increasing prices.
When I started getting hit with high California taxes, I decided to cut costs and stopped hiring pest control and lawn maintenance. Those two small businesses lost business thanks to the government. Those types of businesses are now very much faltering in the current economy.
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(though, again, the danger of trying and failing is bigger in the US, so people, statistically at least, seem to be less willing to take those chances),
I don't think this is an accurate statement, or at least it's not clear to me what you mean.
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but if you think someone moving from the lower class into the middle class is just as much a success story as someone moving from the upper-middle-class into the upper class, then I'd say the european system has advantages.
Yes, on the individual scale, but not on the grander scale of creating jobs and giving opportunities to people. How many employees do lower class and middle class people have? And who gives them their jobs? The wealthy or the government. The government takes from the wealthy to create those jobs (which jobs, I might add, have little "opportunity" of ultimate wealth creation) and the wealthy create opportunities and wealth. When the wealthy aren't free to create wealth (which is what they're typically good at), we all suffer because wealth gets wasted (through primarily taxes and bureaucracy).
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But...the US did the same thing. So it's not entirely fair to call that a european problem, in my view.
Touche. I agree that the US adopted the European model too much in that case. I am trying to harken us back to pre-Roosevelt models, which is what America and the American Dream were founded on. Since the 30s, America has become more and more socialist in nature...which is not all bad.
But as they say, there's only one thing you can never get out of Washington D.C.: a government program.
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What part was the socialism, though? Ireland was held up by the free-market capitalists as the shining example of what the rest of europe should try to be, right up until the bubble burst.
The problem with socialist models is that they create the bubble, which seems good for awhile, and then the bubble always bursts. Just as it did when the US started carving out socialist policies in 1996 under Clinton and democratic congress that eventually led to the housing crisis.
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I disagree. It was private sector investment and speculation that make people take on the loans, not the government forcing them to do it. It was just the normal bubble/burst cycle that's inherent to unregulated capitalism. Blaming it on too much regulation and socialism misses the point entirely, in my view. Socialism has its downsides, just as any other economic system does, but Ireland's current financial situation isn't a result of them. Like I said, Greece, sure, that's an example of what you're talking about, but Ireland's current troubles are troubles of capitalism, not socialism.
My comments here were taken directly from a business article, so I won't quibble.
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If you get sick, and go bankrupt, you don't get coverage. You're out of luck. You lose your insurance because you can't pay for it, and you can't get any other insurance because you've got a pre-existing condition.
The problem is that you are focused on "insurance." When I was in school without insurance, my wife got really sick and was in the hospital. We applied for medicaid, and it was paid. As mentioned, there is also bankruptcy available. But the key is that if you have an emergency, the emergency room will still treat you. They'll work out payment plans or it'll go against your credit, or you file bankruptcy or apply for Medicaid. But YOU WILL STILL GET THE TREATMENT IF YOU NEED IT.
If you want elective benefits, you'll have to have insurance or pay for them. I don't see why that's wrong or why I should pay for someone else's elective benefits.
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I know its possible for some people to take out huge loans, but some people can't swing it, even when working their butt off.
This makes no sense. If you take a loan for school, it is paying for you. Are you talking about paying it off later? If that's the case, then the person has chosen the wrong career track to take out loans for. It is all manageable and doable if done wisely.
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It can be done, but it's sort of like saying "anyone can play in the NFL, you just need to practice!"
It's actually nothing at all like that...
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In a way, its true, because some people make it through hard work and practice. But in another way it's not, because many people work hard and practice and don't make it to the NFL.
I really think this is a very inapplicable analogy. The NFL has very limited amount of space and it's more of a lottery shoot. There are many vocations available for people who move toward goals and plan it out.
And if they choose not to, I still don't see why they should demand that other people pay for them. Some people are poor and happy. There's nothing wrong with that. It's the sense of entitlement to other people's money and wealth that is disturbing. It's definitely a new phenomenon over the last century or two.
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Similarly for putting oneself through school without any other support. It can be done, but it shouldn't implied that everyone who tries will succeed, or that it's easily done.
Now you want it to be easy too???!!! It's hard. It's damn hard. But if you do it and you succeed, all the more power to you and you deserve what you get. I wouldn't go raiding their pockets. They're creating wealth and jobs and they've proven they know how to plan and handle money.
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Heh, if I make that much, I have to pay american taxes, AND british taxes, so I'd really take the hit. ;) But really, as someone who's not motivated primarily by money, I'm not too fussed about paying higher taxes.
You see, that's what I'm saying. Many people are happy without higher incomes. All the more power to you.
But that begs the question: You yourself are not too fussed about paying higher taxes, and that's fine, pay all you want; the question is this: does that mean you have the right to impose that belief on everyone else? In other words, do you get to demand that everyone should not be too fussed about the government taking away their money, or do you allow for the opinion that people should have the freedom to think differently and do with their money as they will? That's where I believe the biggest issue is here: it is an imposition of socialist beliefs on those who do not believe in socialist ideals, as though something is wrong with that, to the extent of taking away their money and property by force.
(Granted, I am using the term "socialist" very broadly to include bigger government programs that require higher taxing.)
On the flip side, the anti-socialist view (for lack of a better term) does absolutely no harm. On one hand, people like you can pay as much in taxes as they want for the government bureaucracy to put into programs, or you can pay more to charities that have a higher degree of actually giving money to people who need charity, or you can invest your money for others to create wealth, or you can use it to create more wealth and jobs yourself. There are more freedoms, and ultimately more wealth creation, with this model.
The key idea here is whether the government should be in charge of people's lives and money at such a granular level, or should the freedoms remain with the people? I think there are certainly advantages to both models. The problem I have with the socialist model is that, by definition, it completely excludes, alienates, and renders powerless those who have the more anti-socialist mindset. This transfer of freedom and power from individual to government bothers me, even if the socialist system worked like a charm.
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I could see if making lots of money is the primary concern for someone, that living in the US would be better than europe (in some cases at least), but I tend to think that's not the best way to live life. Different strokes for different folks, I guess.
Exactly! So the question is whether you should impose your beliefs on everyone else and demand that they pay more, or whether you live your happy life paying more and let them choose what to do with the money they worked hard for.
By the more socialist view, you are saying the opposite: "No different strokes for different folks;" it's my way or the highway.