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Who the welfare state protects shapes a country’s financial openness

https://theloop.ecpr.eu/who-the-welfare-state-protects-shapes-a-countrys-financial-openness/
22•kome•1h ago

Comments

alephnerd•51m ago
> Where redistribution runs vertically and broadly, the welfare state absorbs global finance shocks...

If this was true, then the Eurozone crisis would not have been as severe as it was in Portugal, Spain, Italy, Greece, and France - all countries with broad and large social assistance programs.

---

Also, the HN title is editorialized, the correct title is "Who the welfare state protects shapes a country’s financial openness"

mono442•15m ago
The crisis was largely artificially engineered because Germans believed that Southern Europeans were "lazy" and needed to be made an example of.

The ECB could have brought government bond yields down from the beginning and most of the problems could have been avoided.

3748949494•8m ago
surely buying bonds will save you when you are running 8% yearly deficits to buy votes with welfare payments
mono442•3m ago
There's no natural law saying that budgets have to be balanced. Most countries run constant deficits.
gruez•2m ago
>The ECB could have brought government bond yields down from the beginning and most of the problems could have been avoided.

Is that sustainable? Argentina's predicament is basically caused by a variant of this. The Peronists gave handouts to buy votes, funded by money printing (ie. "The ECB could have brought government bond yields down"), but that has consequences and turned Argentina into an economic basket case. Of course, you might argue the EU doesn't have this problem because it's stronger economically and other states can prop them up, but that begs the question, why should member countries like Germany fund Southern Europeans's fiscal profligacy?

alistairSH•11m ago
That is the HN title?
nickff•4m ago
I believe that it was changed after the comment you have replied to was posted.
baggy_trough•40m ago
Where is the supposed austerity?
ck2•15m ago
in the US it protects the corporations so they don't have to pay a living wage

* https://www.washingtonpost.com/business/2026/07/22/amazon-gi...

amazingamazing•10m ago
Given that you cannot force someone to hire anyone at a given wage what is the solution?

At best all you can say is that if you decide to hire, it cannot be lower than some minimum, but often this results in no job at all.

ben_w•1m ago
While true when minimum is set too high, the level it is set to generally takes this into account so that "too high" is not reached over the entire jobs market.
3748949494•9m ago
Is that why wages in the US are double those in europe or more
oniony•2m ago
No, it's because in the USA people have to pay for their own healthcare and other welfare.

If you look at the disposable income numbers, the picture is quite different.

https://worldpopulationreview.com/country-rankings/disposabl...

irishcoffee•3m ago
It seems a little bit cherry-picked that you selected an article about people on food stamps and federal aid during a global pandemic, which saw absolutely massive amounts of people lose their jobs.

Doesn’t feel objective.

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