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Wanna Argument?
Big versus Small Government
Is the American economy as 'dog-eat-dog' as this suggests?
Will Hutton points out that American capitalism is seen as the most individualistic of all models of market-based economies . The hallmarks of the system are: ease of hiring and firing, weak trade unions, low job regulation, and high job turnover. Social welfare is seen as a low priority, with means-testing of welfare payments, low social security contributions and very short-term
unemployment benefit.
But, he also makes clear that the American economy is highly effective at generating jobs. What must be borne in mind, though, is that many of these jobs are very poorly paid. The bottom 10% of the workforce gets less than 40% of median wages, compared to the European average of almost 70% of the average.
The harsh facts as depicted by Hutton are softened by his recognition of the dynamic culture in the `States of public and private morality. He identifies a powerful tradition of charity and solidarity in America. This was exemplified in February 2001 by the appearance in the New York Times of an advert taken out by some 120 American billionaires, voicing their opposition to President
George W Bush's proposal to abolish US inheritance tax.
Two years before this, an even greater number of billionaires (150 this time!) signed a "Tax Fairness Pledge", which committed them to donate the proceeds of the 1997 capital gains tax cut to groups campaigning for a fair tax system in America. Partly as a result of changes that have seen the near halving of income tax, reductions in inheritance tax and cuts to capital
gains tax, the share of wealth controlled by the top 1% of American earners has doubled in the period since 1976.
When the wealthiest 1% of households have more than the poorest 95% combined, rich Americans appear to begin to acknowledge that the land of opportunity is fast becoming an aristocracy of the affluent.
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