Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

Europeans blaze a more efficient path to prosperity

From the Everett Herald: [Ed.: Check out 10 Myths of Europe - busted on WaPoWa to learn more.]

Can you imagine a world in which you receive health care when you need it, and don’t have to worry about losing your coverage when you change jobs? How about when you have a child, being able to take six months to care for your baby at three-quarter pay? Or when you retire, receiving an annual pension worth three-fifths of the average of your best five years’ salary? A place where college tuition costs close to nothing and a train gets you from Everett to Seattle in 15 minutes, every half hour?

In this world, as an employer I do not have to negotiate health insurance. I do not have to figure out how to start a deferred compensation plan. I do not have to cover costs for leave when one of my employees has a baby. I do not have to set up a cafeteria-style program of benefits and hope my employees guess the correct amount of pre-tax dollars to cover their child-care costs.

All these social responsibilities would be shifted from my business, enabling me to focus on one thing: creating the best possible products and services. An educational pipeline provides me a ready supply of talented workers — and I can get back and forth between business meetings in Everett and Seattle without the hassle of sitting in traffic.

Of course, in the largest and most dynamic economy in the world, this isn’t just a fantasy. Wait, aren’t we talking about the United States? No, it’s Europe — specifically the European Union — with an economy based on universally available health coverage, higher education, pension security, maternity and paternity leave, and a transportation system that moves goods and people around with speed and efficiency.

I got a taste of this world recently.

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Myth 10: Europe is turning into ‘Eurabia’ while its own population is dying out.

ShareFACT: Muslim immigration in Europe currently represents a mere 3% of Europe’s total population of more than 500 million. More immigrants have arrived from non-Muslim countries than from Muslim; in France the largest immigrant group for the last two decades is from Portugal, not North Africa. The percentage of Muslims immigrants is far smaller than the percentage of immigrants to the U.S., which is 12 percent of the population. The proportion of Muslims will increase, but even if Muslim immigrants double by 2025, they still will form far less of Europe than the total immigrant share of the U.S. population today.

This is hardly an Islamic tide, as the alarmists have claimed. And the vast majority of Muslim immigrants have endured the hardships of immigration for a better life, European-style, not to spread jihad. Of greater concern is the number of ethnic minorities, including the children and grandchildren of immigrants, who remain less than fully integrated.  These minorities, like most minorities everywhere, suffer from higher rates of unemployment, poverty and discrimination.

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Myth 9: Europe is weak on the global stage, lacking international power.

ShareFACT: Europe has achieved some impressive foreign policy accomplishments that force us to reevaluate of how we define “power” in the 21st century. America’s aggressive brand of unilateralism and military “hard power” has suffered unexpected setbacks in recent years. But Europe’s “smart power,” which is based on multilateral diplomacy and regional networks of investment, trade, and Marshall Plan–like foreign aid, has produced more concrete results than its critics will admit.

For starters, this velvet diplomacy has been instrumental in bringing greater peace, democracy, and prosperity to the former communist dictatorships of eastern and central Europe, as well as to neighbors such as Turkey, Ukraine, and others in its periphery. All told, this “Eurosphere” links two billion people — one-third of the world, including many Arab countries — to the European Union and its way of doing things. Europe’s smart power also shows the right temperament for slowly nudging Russia, China, the Middle East, and other hot spots toward rapprochement with the West.

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Filed under: health care, retirement security, work and family, , , , , , ,

Myth 8: Europe is not as innovative or as technologically advanced as it needs to be.

ShareFACT: While Europe’s technological prowess has been compared unfavorably with the U.S., more than anywhere else, Europe is the place of high speed trains, vast solar arrays, high tech windmills, hydrogen and electric cars and power from the sea. Europe is populated by high tech companies and projects such as Airbus, BMW, Mercedes, Nokia, Siemens, Alston, the world’s largest particle accelerator at CERN, the largest fusion power project at ITER, and more.

Its high tech manufacturing base has made many European countries into high export nations — China and India hunger for European technology. Indeed, the World Economic Forum’s “Global Information Technology Report 2008–2009” ranked European nations in the top two spots and in seven of the top ten; the U.S. was ranked third. Europe also has more people on the internet, and its internet speeds are faster and less expensive than in the U.S.

– Steven Hill, guest blogger

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Filed under: health care, retirement security, work and family, , , , , ,

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