Wednesday, May 10, 2006

Denmark to show the way?

When things started to go down at the beginning of the 90s Denmark treated the symptons by relaxing its strict employment protection laws. The new model worked and not just in Denmark. As I wrote some months ago economies with lax employment protection legislation have enjoyed a steady economical growth and witnessed a decrease in unemployment rates (lax employment protection is not, of course, the only significant factor contributing to a country's overall economic performance).
Latest developments within the EU suggest that neither German nor French economies are to see lax employment protection laws for a while. Their young workers will end up paying the price. The left is arguing that lax employment protection laws are wrong. To them, it seems, whether these laws work or not is irrelevant. This suggests that my idea, that all left-wing fanatics are just as bad moralists as right-wing Christians are, is correct.
The easiness of firing & hiring in Finland is somewhere between Denmark and Germany. Our situation is not as bad as that of Germany's but there's clearly room to take a step or two forward. It can be done and it should be done. Economies around the world show this but the public (and the wicked labor unions) is reluctant. However, the best employment protection is knowing that there are plenty of jobs available in case you become unemployed.

Some of our left-wing politicians do realize the benefits of the Danish model:

"Ty├Âministeri Tarja Filatov kannattaa Tanskan ty├Âllisyydenhoitomallin soveltamista Suomessa, kertoo Taloussanomat." -YLE

Since I hate browsing through OECD archives I decided to just scan this table from "Cowboy Capitalism". It's a bit old, from 1999, so keep in mind that it's not that accurate:

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