The U.S. tends to rank below average on measures of social support among the 37 countries of the Organization for Economic Development and Cooperation, whose members are mostly developed democracies. The U.S. came last in people living in relative poverty, meaning living on half the median income or less, with 17.8%. Countries like Iceland, Denmark, the Czech Republic and Finland have less than 6%.
Here’s a look at how the social safety nets of the U.S. and Europe compare:
UNEMPLOYMENT BENEFITS
Americans on unemployment were collecting an average of about $372 weekly before the coronavirus struck. But that average could range from $215 in Mississippi to $543 in Hawaii. The rescue package gave jobless workers an additional $600 a week through July. It also extended benefits to those who lost work as a result of the coronavirus outbreak, which could include parents who needed to leave their jobs because schools were closed. Most states offer six months of unemployment but the emergency legislation adds 13 weeks.
By comparison, Germany’s jobless benefit pays 60% of previous salary for a year. France provides up to 75% of the previous average daily wage for up to two years. Unemployment benefits in France are on average 1,200 euros ($1,320) per month.
And there’s Europe’s short-hours programs, which pay most of worker salaries if companies put them on shorter hours through a temporary disruption. More than 10 million workers are being paid that way in Germany and about 12 million in France, helping hold eurozone unemployment to only a 0.1 percentage point increase in March over February, to 7.4%.
The U.S. emergency package included money for cheap loans to businesses that can be forgiven if the money is used mostly for payroll.
HEALTH INSURANCE
Nearly half of Americans receive health insurance through their employers, while another 34% get benefits through the government programs Medicare and Medicaid. Separately, 6% are insured individually and 9% in 2018 had no insurance at all.
In Europe, universal health coverage is the rule, generally funded by payroll or other taxes. One example is Britain’s National Health Service, which is funded by taxes and offers free care that costs the government 7% of GDP per year.
https://apnews.com/article/016b768f9c856c1baa1f7a6032de1243
