Americans Would Prefer Denmark Social Safety Net & Taxes If Informed

Americans Would Prefer Denmark Social Safety Net & Taxes If Informed:

'via Blog this'

One of the reasons Denmark and other Scandinavian countries with a strong social safety nets weathered the Great Recession better is that they had a built in stimulus. In America when one loses a job, they get unemployment for a short time (this recession was an exception). That unemployment is much less than wages and runs out quickly. That means the contribution to the economy by that laid off worker makes a recession much worse as much less money is entered into the economy. In countries with strong safety nets, workers get up to 90% of their wages. As such the economic shock from unemployment is mitigated till the economy’s ‘overstock’ is mitigated until increased employment is required.