Re: Power of the Dollar and US Strategic Interests

[phillp2@xxxxxxxxxxxxxxx]

From: phillp2@xxxxxxxxxxxxxxxxxxxx
To: William F Hummel <wfhummel@xxxxxxxxxxx>
Date: Mon, 14 Jul 2003 17:55:43 -0500
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Subject: Re: Power of the Dollar and US Strategic Interests
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William F Hummel wrote:

> I don't see how one can look closely at German labor market
> inflexibilities and conclude that they have "very little, if any"
> effect on unemployment levels.  There are numerous
impediments to
> entry as well as to job transfers, as is also the case in France.
This
> has been a perennial problem in both countries.
>
> In any case, I would be interested in seeing Palley's paper, but
could
> not find it, or his name, listed on the Levy Economics Institute
> website.
>
> William F Hummel
>
>
Working paper number 336 for anyone who wants to see his
evidence.  See also George W. Bush's America vs. "Old Europe"
on Jobs by Dean Baker and Simone Baribeau, April 16, 2003
PDF, CEPR Website  and Baker, D, A. Glyn, D. Howell, and J.
Schmitt, 2002. =93Labor Market Institutions and Unemployment: A
Critical Analysis of Cross-Country Evidence.=94 Center for Economic
and Policy Analysis
[http://www.newschool.edu/cepa/papers/archive/cepa200217.pdf].

A quote from Baker and Baribeau's paper.

           There is a myth that labor market protections, such as
strong unions and generous unemployment benefits are keeping
unemployment high in Europe. In fact, a recent study on this topic
found very little evidence to support this widely held view.[1] Some of
the countries that have the strongest labor protections in Old Europe,
such as Austria, Sweden, and Norway also have the lowest unemployment
rates. In the cases of these three countries, as well as Ireland and COW
members Denmark and the Netherlands, the unemployment rates are actually
lower than those in the United States.

Paul Phillips,
Economics,
University of Manitoba



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