How welfare and jobs can coexist
Which system do i prefer the most?
Honestly, I prefer the Rhineland system the most. In my opinion, the rhineland model is a good middle way. Both, the scandinavian model and the Anglo saxon model have there disadvantages and so does the Rhineland model. The reason I prefer the rhineland model is because the government does give a sufficient amount of support and the taks bill isn’t as high. According to the article, someone in Denmark who joins the labor force loses 86 per cent of their earnings. In the United states, this number is significantly lower, but there us a way larger unemployment rate. The employment rate in Denmark is about 82 per cent while the employment rate in the United states is about 73 per cent, this means that there is 27 per cent of the citizens in the United States, is unemployed. Although there is olnly a small number in Denmark that face with unemployment, the effective tax rate is way to high.
Here is why I chose the Rhineland model. The rhineland model provides a strictly contained free market and the employees are well protected from dissmissal or illness. The anglo saxon model causes a larger number of unemployment because the wages are determined by market forces and a flexible labour market gives impulses to unemployment, wich can cause massive problems for the people that unfortunately drop out.
I think that the Rhineland model is a good middle way that combines tbe two models together.
Daan van gils – VWO 4