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Mobility Key to US Success

The current Business Week points out that unemployment in the US is 4.7% compared to Germay at 8.2% and France at 8.9%.  Now remember that unemployment never goes to zero.  People are always between jobs, moving, students come and go from the workplace, and frankly some folks don’t want to work. The 4.7% is as low as it has been for some time.  So from the standpoint that say 4% might be as low as one could go, the unemployment rate in Europe is staggeringly high. How come?

The same issue details that McDonald’s has a new program to allow its 2225,000 European workers to get jobs anywhere in the EU.  THe rpoblem is the lack of labor mobility.  Only 1.5% of Europeans live and work outside their own coutnri3es.  60% say they would not make such a move even if they were jobless.  uch a conclusion would be impossible without of course the extensive welfare benefits in the EU countries.

Add to this the fact that there has been no net job creation in Europe since the 1970s, the US has created millions of jobs and lost less than created. I think the difference is in the tax system, here is you make money you get to keep a lot of it, that is not the case in Europe.  France in particualr has really obnoxious laws that harrass small business.  This was detailed in B/W in a recent issue.

So it’s no wonder that U Haul is thriving and doing well in the US, we are on the move.

DLE

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2 responses to “Mobility Key to US Success”

  1. Michelle Wågsjö Avatar
    Michelle Wågsjö

    In Sweden, the unemployment is somewhat high, around 6% for a population of over 9 million. However, many Swedes are supported by the government and, hence, are not as pressured to find a job as people living in America. Our taxation system is one of the highest in the world which can reach up to 60% (national, income, i.e.) in the worst cases. The welfare system will provide the Swede with monthly allowances. This, therefore, gives us some comfort. To work over time, for example, in Sweden, more money is taken out of the paycheck. Why should we then need to work harder? After living in America for a while, I know that the responsibility of staying afloat economically speaking is vital. I love Sweden, yet I also don’t want my money controlled by the government. America has less of this in comparison.
    Many of my Swedish friends do not understand this until they have lived in the US for a while. That is, the capitalistic society.

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  2. Dennis Elam Avatar
    Dennis Elam

    Great points all Michelle, my sister married a German and they live in Germany, unemployment over 8%, same story, and he has really never worked since they married, with the disincentive of high taxes, he chooses not to and became a Mr. Mom. Actually if one lives in say Mass. or New York City, one pays state income tax as well as city income tax in NYC so the total tax burden easily passes 50% if you make enough money to live there. A lot of the success of the DFW area is due to the high taxes of the 1970s when NYC eventually went broke, firms like J C Penny pulled up stakes and moved here, the DFW airport helped also,
    Ireland has some of the lowest European taxes and current highest growth

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