U.S. Exports

joanna bujes joanna.bujes at ebay.sun.com
Thu Sep 6 13:51:59 PDT 2001


At 02:52 PM 09/06/2001 -0400, Doug wrote about some German picking up on the US welfare idea...


>ABSTRACT:
> Social assistance in Germany reduces the incentive to work. The
> U. S. Welfare to Work Programme tries to avoid such
> disincentives. It consists essentially of two elements: the
> Earned Income Tax Credit (EITC) for employees in low wage
> occupations and a Workfare model. The EITC and the Workfare
> model as implemented in the State of Wisconsin are described and
> analysed. Conclusions for welfare reform in Germany are drawn.

Yeah, a couple of weeks ago, The Economist ran an article on the global recession -- it was pretty scary. The last page of that article was on the left; the right-facing page was about the incredible "success" of the US end-to-welfare programs. The irony went unremarked....but in my book, when you have the kind of polarization of wealth (as in the last 20 years), you pretty much start that big race to the bottom...which is disastrous for everyone eventually.

Now, I don't imagine that Doug thinks ending welfare programs is a giant step forward for humanity. So, Doug, why are you raising this issue? Do you think the working class in Western Europe is next to be crushed by a U.S. inspired rob-the-workers program?

Joanna Bujes



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