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Economics Issues from
Ed Dolan’s Econ Blog
Why Does Anyone Think
America Should be More Like
Europe? Some Reasons
Posted February 15, 2016
Terms of Use: These slides are provided under Creative Commons License Attribution—Share Alike 3.0 . You are free
to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like
the slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishing.
Should America Be More Like Europe?
 The idea that liberals want to make
America more like the rest of the
world has become a favorite
Republican attack line of the 2016
presidential campaign
 Conservatives are especially
hostile to trying to make America
more like Europe
February 15, 2016 Ed Dolan’s Econ Blog
“Barack Obama is undertaking
a systematic effort to change
this country, to make America
more like the rest of the world.”
—Sen. Marco Rubio
New Hampshire Republican
Debate, Jan. 2016
Some Liberals Do Openly Admire Europe
 In a recent interview on ABC,
George Stephanopoulos
cautioned Sanders that
Republicans were likely to jump all
over him for saying the U.S.
should be more like Scandinavia.
 "That's right. And what's wrong
with that?" Sanders replied.
February 15, 2016 Ed Dolan’s Econ Blog
Sen. Bernie Sanders speaking
before Iowa Caucuses,
January 2016
Let’s Look at Some Data
 To understand why some
people want America to look
more like Europe, let’s look at
some data
 Specifically, let’s look at the
Social Progress Index, (SPI)
which shows how well
countries convert raw GDP into
good lives for their citizens
February 15, 2016 Ed Dolan’s Econ Blog
Components of the Social Progress Index:
 Basic Human Needs (nutrition, basic
medical care, access to clean water,
sanitation, shelter, and security from crime
and terrorism)
 Foundations of Wellbeing (literacy and
quality of primary education, access to
mobile phones and internet, life
expectancy, and environmental quality)
 Opportunity (political rights, freedom of
speech and religion, property rights,
tolerance, freedom of personal choice, and
access to higher education)
SPI vs. GDP: An Overview
 This chart shows that the
Social Progress Index
increases as GDP per
capita increases (black
trendline)
 The US does an average
job of converting raw GDP
to a good life for its citizens
(it is right on the trendline)
 Most European countries
outperform the US on the
SPI, in many cases even
when their GDP per capita
is lower
February 15, 2016 Ed Dolan’s Econ Blog
Basic Human Needs
 Northern European
countries (blue dots) all do
better than the US in
providing basic human
needs
 The US is below the
trendline—it does worse
than expected for such a
wealthy country
 Most of the middle-income
countries of Eastern and
Southern Europe (red
squares) also do a better
than expected job of
providing for basic human
needs
February 15, 2016 Ed Dolan’s Econ Blog
Foundations of Wellbeing
 The picture is similar for
the Foundations of
Wellbeing component of
the SPI
 The US performs below
the global trend
 Most European countries
do better than expected,
given their level of income
February 15, 2016 Ed Dolan’s Econ Blog
Opportunity
 The “Opportunity”
component of the SPI is
rich in indicators valued by
conservatives, like
personal freedom, property
rights, and tolerance
 The US performs well by
these indicators, but not
greatly above wealthy
Northern European
countries
February 15, 2016 Ed Dolan’s Econ Blog
The Bottom Line
 If we look at the facts, it is not hard to
see why some people think America
should be more like Europe
 Most European countries do a better
job than the US of converting raw GDP
into a good life for their citizens
 They do better in satisfying basic
human needs and providing the
foundations of wellbeing without
sacrificing key American values like
personal freedom, property rights and
tolerance
February 15, 2016 Ed Dolan’s Econ Blog
Click on the image to learn more about
Ed Dolan’s Econ texts
or visit www.bvtpublishing.com
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Follow @DolanEcon on Twitter

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Why Should America Be More Like Europe?

  • 1. Economics Issues from Ed Dolan’s Econ Blog Why Does Anyone Think America Should be More Like Europe? Some Reasons Posted February 15, 2016 Terms of Use: These slides are provided under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishing.
  • 2. Should America Be More Like Europe?  The idea that liberals want to make America more like the rest of the world has become a favorite Republican attack line of the 2016 presidential campaign  Conservatives are especially hostile to trying to make America more like Europe February 15, 2016 Ed Dolan’s Econ Blog “Barack Obama is undertaking a systematic effort to change this country, to make America more like the rest of the world.” —Sen. Marco Rubio New Hampshire Republican Debate, Jan. 2016
  • 3. Some Liberals Do Openly Admire Europe  In a recent interview on ABC, George Stephanopoulos cautioned Sanders that Republicans were likely to jump all over him for saying the U.S. should be more like Scandinavia.  "That's right. And what's wrong with that?" Sanders replied. February 15, 2016 Ed Dolan’s Econ Blog Sen. Bernie Sanders speaking before Iowa Caucuses, January 2016
  • 4. Let’s Look at Some Data  To understand why some people want America to look more like Europe, let’s look at some data  Specifically, let’s look at the Social Progress Index, (SPI) which shows how well countries convert raw GDP into good lives for their citizens February 15, 2016 Ed Dolan’s Econ Blog Components of the Social Progress Index:  Basic Human Needs (nutrition, basic medical care, access to clean water, sanitation, shelter, and security from crime and terrorism)  Foundations of Wellbeing (literacy and quality of primary education, access to mobile phones and internet, life expectancy, and environmental quality)  Opportunity (political rights, freedom of speech and religion, property rights, tolerance, freedom of personal choice, and access to higher education)
  • 5. SPI vs. GDP: An Overview  This chart shows that the Social Progress Index increases as GDP per capita increases (black trendline)  The US does an average job of converting raw GDP to a good life for its citizens (it is right on the trendline)  Most European countries outperform the US on the SPI, in many cases even when their GDP per capita is lower February 15, 2016 Ed Dolan’s Econ Blog
  • 6. Basic Human Needs  Northern European countries (blue dots) all do better than the US in providing basic human needs  The US is below the trendline—it does worse than expected for such a wealthy country  Most of the middle-income countries of Eastern and Southern Europe (red squares) also do a better than expected job of providing for basic human needs February 15, 2016 Ed Dolan’s Econ Blog
  • 7. Foundations of Wellbeing  The picture is similar for the Foundations of Wellbeing component of the SPI  The US performs below the global trend  Most European countries do better than expected, given their level of income February 15, 2016 Ed Dolan’s Econ Blog
  • 8. Opportunity  The “Opportunity” component of the SPI is rich in indicators valued by conservatives, like personal freedom, property rights, and tolerance  The US performs well by these indicators, but not greatly above wealthy Northern European countries February 15, 2016 Ed Dolan’s Econ Blog
  • 9. The Bottom Line  If we look at the facts, it is not hard to see why some people think America should be more like Europe  Most European countries do a better job than the US of converting raw GDP into a good life for their citizens  They do better in satisfying basic human needs and providing the foundations of wellbeing without sacrificing key American values like personal freedom, property rights and tolerance February 15, 2016 Ed Dolan’s Econ Blog
  • 10. Click on the image to learn more about Ed Dolan’s Econ texts or visit www.bvtpublishing.com For more posts and slideshows, Follow Ed Dolan’s Econ Blog Follow @DolanEcon on Twitter