TY - JOUR
T1 - Economic efficiency versus social equality? The U.S. liberal model versus the European social model
AU - Navarro, Vicente
AU - Schmitt, John
PY - 2005
Y1 - 2005
N2 - This article begins by challenging the widely held view in neoliberal discourse that there is a necessary trade-off between higher efficiency and lower reduction of inequalities: the article empirically shows that the liberal, U.S. model has been less efficient economically (slower economic growth, higher unemployment) than the social model in existence in the European Union and in the majority of its member states. Based on the data presented, the authors criticize the adoption of features of the liberal model (such as deregulation of their labor markets, reduction of public social expenditures) by some European governments. The second section analyzes the causes for the slowdown of economic growth and the increase of unemployment in the European Union - that is, the application of monetarist and neoliberal policies in the institutional frame of the European Union, including the Stability Pact, the objectives and modus operandi of the European Central Bank, and the very limited resources available to the European Commission for stimulating and distributive functions. The third section details the reasons for these developments, including (besides historical considerations) the enormous influence of financial capital in the E.U. institutions and the very limited democracy. Proposals for change are included.
AB - This article begins by challenging the widely held view in neoliberal discourse that there is a necessary trade-off between higher efficiency and lower reduction of inequalities: the article empirically shows that the liberal, U.S. model has been less efficient economically (slower economic growth, higher unemployment) than the social model in existence in the European Union and in the majority of its member states. Based on the data presented, the authors criticize the adoption of features of the liberal model (such as deregulation of their labor markets, reduction of public social expenditures) by some European governments. The second section analyzes the causes for the slowdown of economic growth and the increase of unemployment in the European Union - that is, the application of monetarist and neoliberal policies in the institutional frame of the European Union, including the Stability Pact, the objectives and modus operandi of the European Central Bank, and the very limited resources available to the European Commission for stimulating and distributive functions. The third section details the reasons for these developments, including (besides historical considerations) the enormous influence of financial capital in the E.U. institutions and the very limited democracy. Proposals for change are included.
UR - http://www.scopus.com/inward/record.url?scp=27844447621&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=27844447621&partnerID=8YFLogxK
U2 - 10.2190/6LJJ-HL7H-GF0X-66RC
DO - 10.2190/6LJJ-HL7H-GF0X-66RC
M3 - Review article
C2 - 16320895
AN - SCOPUS:27844447621
SN - 0020-7314
VL - 35
SP - 613
EP - 630
JO - International Journal of Health Services
JF - International Journal of Health Services
IS - 4
ER -