•Press Release Europe Workers World
August 1, 2006
For Immediate Release: August 1, 2006
Contact: Lynn Erskine, 202-293-5380 x115
Washington, DC: The United States is performing poorly in two areas typically associated with American economic superiority – employment rates for disadvantaged populations and income mobility – according to a report by the Center for Economic and Policy Research.
"Is the U.S. a Good Model for Reducing Social Exclusion in Europe?," by economist John Schmitt and researcher Ben Zipperer, found that the United States fares worse than Europe on a range of social and economic indicators, including most measures of poverty, health, education and crime.
The study reviewed data on economic and social measures to assess how well the U.S. has leveraged its vaunted dynamism to improve American living standards. It found that the U.S. is the most unequal of the major OECD countries, with a higher Gini coefficient, lower relative incomes among poor households and a bigger gap between rich and poor. The report notes that:
"The U.S. economic and social model generates high levels of income inequality, high poverty rates, and poor and unequal educational outcomes. It's not a good answer to Europe's problems," said Schmitt.
What is "social exclusion"? Social exclusion occurs when people suffer from a combination of problems such as low income, poor health, high crime, unemployment and family upheaval. It is a common term in European debates on social policy.
To read the report, click here.
