Wednesday, June 27, 2007

Market Reforms? No, Rather ALMPs and Social Spending

The point of this document is that ALMPs work. specifically, that a welfare state can provide a fair level of equity, while not running into unemployment. Detractos say "Social democracy is "old" "rigid" and "outmoded", evidenced by the high unemployment in some european countries, which could be solved by "efficient" and "cutting edge" [read destructively capitalist] market reforms"

What we should ask is, "What are the Swedes doing right?" Here is the way it can work: a social democracy has to have policies that will address unemployment. Specifically, herein is employment subsidy. That's what will work.
Here is a study supporting the idea that Social Democracy is the way to go, and that market reforms are bullshit. The point here is that this document includes emprical evidence demonstrating that that the more a state spends on social spending, the better the standard of living is. The Washington Concensus, and market reformers would have you belive the other way around. "The more we reduce social spending, the better standard of living there will be" BULLSHIT.


  1. I agree with the articles. Most eastern european countries have taken huge steps towards deregulation in vain, why would anybody copy that?