"There are men, in all ages, who mean to exercise power usefully; but who mean to exercise it. They mean to govern well; but they mean to govern. They promise to be kind masters; but they mean to be masters." Daniel Webster

Sunday, May 24, 2009

Going Dutch? Not So Fast

Heleen Mees knocks down some recent praise of the Dutch welfare state:
Due to the high cost of labour (20-25 dollars per hour at minimum wage level) many low-skilled immigrants can't find a job and are forced to spend their lives in subsidised isolation. In the Netherlands, immigrants and people of immigrant background in the 15 to 65 age group are four times more likely to live on public assistance than other people in that age group; they are also over-represented in the crime statistics.

In New York it is exactly the other way around. Immigrants commit less crime and are less often unemployed. The gross minimum wage is lower than in the Netherlands at 7.25 dollars, but thanks to the Earned Income Tax Credit (EITC) people with annual incomes up to 37,000 dollars actually end up with more money after taxes than before.


Michael Moynihan points out that the Dutch have actually been cutting their welfare state and seeing increased economic growth as a result.

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