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	<title>Comments on: Productivity and choice</title>
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	<link>http://graycrane.net/daveblog/archives/2005/07/30/productivity-and-choice/</link>
	<description>dave frey's blog</description>
	<pubDate>Sun, 05 Sep 2010 15:47:43 +0000</pubDate>
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		<title>By: ns</title>
		<link>http://graycrane.net/daveblog/archives/2005/07/30/productivity-and-choice/#comment-11</link>
		<dc:creator>ns</dc:creator>
		<pubDate>Mon, 01 Aug 2005 23:28:52 +0000</pubDate>
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		<description>I should make clear that just because the Europeans have combined deemphasizing the rat race w/ strict labor laws and high employer taxes, this doesn't mean that you can't have parts of this combination w/out the others.  The first is a cultural inclination, while the others are results of public policy.  Of course, when public policy is made by elected officials, they are going to be influenced by the larger culture, BUT they aren't the same thing.

I say this because I think it's an error to look at areas where Europe is a weak performer (e.g., unemployment and labor mobility) and conclude that these are the natural results of a leisure and family oriented society.</description>
		<content:encoded><![CDATA[<p>I should make clear that just because the Europeans have combined deemphasizing the rat race w/ strict labor laws and high employer taxes, this doesn&#8217;t mean that you can&#8217;t have parts of this combination w/out the others.  The first is a cultural inclination, while the others are results of public policy.  Of course, when public policy is made by elected officials, they are going to be influenced by the larger culture, BUT they aren&#8217;t the same thing.</p>
<p>I say this because I think it&#8217;s an error to look at areas where Europe is a weak performer (e.g., unemployment and labor mobility) and conclude that these are the natural results of a leisure and family oriented society.</p>
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		<title>By: ns</title>
		<link>http://graycrane.net/daveblog/archives/2005/07/30/productivity-and-choice/#comment-10</link>
		<dc:creator>ns</dc:creator>
		<pubDate>Mon, 01 Aug 2005 23:20:08 +0000</pubDate>
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		<description>Although I agree with the general point that Europeans have chosen a different -- and, in my opinion, healthier -- choice in the division of their lives between work and everything else, I think you are understating some of the costs of European-style systems with respect to the labor markets.

Their higher productivity per hour is very likely due to their higher capital investment per worker.  There are multiple factors at work here:

	1. the US makes extensive use of very cheap immigrant labor which is not available elsewhere and
	2. because it is so difficult to fire workers in France, hiring someone represents a big commitment that companies generally try to avoid, making mechanical automation more attractive

The drawback of this phenomenon is high unemployment, and a relatively stiff labor market where people don't change jobs.  I'm sure that some European workers are very happy and grateful to stick with the same job for a long time, but held that others would welcome greater freedom to jump to -- hopefully better -- other jobs.

That said, I certainly would welcome more vacation in my schedule, and I envy you for that part of your lot.  And there's no doubt that there is a profound cultural difference in this area beyond the regulatory environment.  I get the sense that even if all the laws were the same, Europeans are just less competitive about their careers and lose less sleep over their relative position to their peers, with the result being a more relaxed populace and slightly less dynamic economy.
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		<content:encoded><![CDATA[<p>Although I agree with the general point that Europeans have chosen a different &#8212; and, in my opinion, healthier &#8212; choice in the division of their lives between work and everything else, I think you are understating some of the costs of European-style systems with respect to the labor markets.</p>
<p>Their higher productivity per hour is very likely due to their higher capital investment per worker.  There are multiple factors at work here:</p>
<p>	1. the US makes extensive use of very cheap immigrant labor which is not available elsewhere and<br />
	2. because it is so difficult to fire workers in France, hiring someone represents a big commitment that companies generally try to avoid, making mechanical automation more attractive</p>
<p>The drawback of this phenomenon is high unemployment, and a relatively stiff labor market where people don&#8217;t change jobs.  I&#8217;m sure that some European workers are very happy and grateful to stick with the same job for a long time, but held that others would welcome greater freedom to jump to &#8212; hopefully better &#8212; other jobs.</p>
<p>That said, I certainly would welcome more vacation in my schedule, and I envy you for that part of your lot.  And there&#8217;s no doubt that there is a profound cultural difference in this area beyond the regulatory environment.  I get the sense that even if all the laws were the same, Europeans are just less competitive about their careers and lose less sleep over their relative position to their peers, with the result being a more relaxed populace and slightly less dynamic economy.</p>
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