A Mark Thoma article in the Fiscal Times. (*GASPS* not from his blog?) Mark Thoma compares the free market managing of the US and Europe. US = very free market, very dynamic. Europe = more protection, a little less free market. The tradeoff: giving up security for (1) higher economic growth and (2) a more stable economy. You can read the article for further explanation...
Key part of the article is a very basic comparison of US economic growth and stability to a variety of European countries. (1) There has been more growth, but the difference is "relatively small and has been diminishing over the last decade", and these benefits have been mostly going to those at the top. (2) Stability is a mixed bag; unemployment is higher in the US than some countries, lower than some, but a paper from the Institute for the Study of Labor suggests that there is little correlation between size of welfare state and subsequent sovereign debt troubles. You don't say.
Mark Thoma's conclusion sounds about right: you don't need to give up the dynamicism of the US, but there are European models of security that look like they can work well in the rather-free market.
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