Sunday, January 22, 2012

Studies Find Less Economic Mobility In U.S. Than Comparable Nations

America has long been called “the land of opportunity.” A number of studies, however, are discovering less economic mobility in the U.S. than in Canada and much of Western Europe. This finding ties in with growing income inequality and the shredding of the social safety net:

At least five large studies in recent years have found the United States to be less mobile than comparable nations....

...In 2006 Professor [Miles] Corak [
an economist at the University of Ottawa] reviewed more than 50 studies of nine countries. He ranked Canada, Norway, Finland and Denmark as the most mobile, with the United States and Britain roughly tied at the other extreme. Sweden, Germany, and France were scattered across the middle.

The causes of America’s mobility problem are a topic of dispute — starting with the debates over poverty. The United States maintains a thinner safety net than other rich countries, leaving more children vulnerable to debilitating hardships.

...The United States is also less unionized than many of its peers, which may lower wages among the least skilled, and has public health problems, like obesity and diabetes, which can limit education and employment.

Perhaps another brake on American mobility is the sheer magnitude of the gaps between rich and the rest — the theme of the Occupy Wall Street protests, which emphasize the power of the privileged to protect their interests. Countries with less equality generally have less mobility.

Photo: Flint, Michigan, Occupy protest; Ryan Garza/The Flint Journal, via Associated Press

1 comment:

KodiakDon said...

This is because poor people are discouraged from entrepreneurial activities and instead are told to "get jobs" that don't exist. Check the Workforce Investment Act.