Read the article and get a glimpse of what welfare states are! There are fundamental difference in approach between European and US development models. Both have helped till now respective countries in making to the top of growth charts globally for considerable period of time. Though both are being criticised lately. Criticism of Eurropean model can be learnt from the present article. US is being criticised since latest data reveal that most of the fruits of economic growth have been cornered by top 1 per cent of the population. Obama a day back confessed this to be a key reason for the defeat of democrats in recent elections. The difference in the model is the conception regarding quantum of states intervention in betterment of quality of life of its citizens. Europe see a bigger role of state whereas US believes market as a more efficient allocator of resources. Now where we have to RUB our heads is which argument works! US believes that market will reward most efficient. Therefore, people will be nudged to be more innovative, risk takers and entrepreneur out of a fear for not being thrown out of the economy. This process creates a vibrant society with inbuilt checks and balances created by market forces. Stiglitz, the Nobel laureate, argues in his recently published article in The Guardian, that it is the social security which motivates people to take risk. In other words, we cannot expect entrepreneurship, innovation and initiative from citizens of a country who lack backup of social security. Think for a while who shows more initiative, a person with a support mechanism or without it. Dont we realize that at this juncture we are trying to finds answers from the domain of psychology. If we are able to resolve the present issue then only we will be able to take sides in the incumbent debate. Muse and reflect. If Ive to decide Ill conduct an experimental study to solve the issue concerning psychology and also will like to add cultural angle to the whole debate. Go ahead and read the article and get a feel of utopian societies.
Posted on: Wed, 12 Nov 2014 16:07:53 +0000
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