As events highlight deep divisions in attitudes between America and Europe, this is a very timely study of different approaches to the problems of domestic inequality and poverty. Based on careful and systematic analysis of national data, the authors describe just how much the two continents differ in their level of State engagement in the redistribution of income. Discussing various possible economic explanations for the difference, they cover different levels of pre-tax income, openness, and social mobility; they survey politico-historical differences such as the varying physical size of nations, their electoral and legal systems, and the character of their political parties, as well as their experiences of war; and they examine sociological explanations, which include different attitudes to the poor and notions of social responsibility. Most importantly, they address attitudes to race, calculating that attitudes to race explain half the observed difference in levels of public redistribution of income. This important and provocative analysis will captivate academic and serious lay readers in economics and welfare systems.
The authors provide an interesting account of comparing European countries with the US regarding income inequality and mobility based on redistribution policies, politics, abs perceptions. The data is outdated now but they provide an important point that institutions matter, as do perceptions which support those institutions. I’d like to see the book updated to reflect the fiscal and regulatory changes in America to see how these have changed the comparison between Europe and America. Check it out for yourself.
3.5 stars. Clear arguments, plenty of supporting evidence, and an interesting thesis. The historical and political arguments are a bit hard to take seriously, since they are outside of the authors' economic backgrounds, but generally this book is easily readable and would be useful for research or if you're looking for an academic book about why the United States didn't develop a strong welfare state.