i like your blog

The problem with Krugman's analysis is that there is every reason to believe that the French situation isn't viable. Unemployment isn't just a problem, it's crippling their economy. Growth has been sluggish for years, and the only reason they're not in a lengthy recession right now is that they've been reforming their economy to be more like ours. Combine that with an aging population and miniscule population growth and you've got a recipe for disaster.

Europe - and to a lesser extent America - enjoyed a decent 50-odd year experiment with mixed capitalist/socialist economies. The experiment was a failure, and it's taking a while for Europe to complete the transition to a more market-based system. Sweden - historically the most socialist country in Europe - is only now recovering from a recession that lasted most of the 90s, and it is doing so because it is cutting back on social welfare programs, lowering taxes, and relaxing workforce restrictions. France has neen following suit, albeit slowly.

Andy & I were wondering if we started a company that offered 35 hour weeks at comparable pay and 4 weeks paid vacation w/3 weeks vacation without pay, if we could then lure the best, brightest and most productive. I imagine that there is about 10-15 out of 40 hours a week that are wasted in some way. If we could cut it to 7-10 or less, have happier employess... just musing a bit...

Our "modestly lower salary" means anything but vacations with family and friends! Hehe.

Charity, I'd work for the proposed Pennock enterprise. Are you accepting applications? =) Disclaimer: By making this comment, I am not insinuating I'm the best, brightest and most productive. It just sounded like a good deal to me. I'd be happy to help with the incorporation process!

Um, not to brag (yes, to brag!), but I get six weeks paid vacation in France this year. Ahh. (It makes the irrepressible stress of the moment worth it, you know?)

Ryan,

When you say "Europe - and to a lesser extent America - enjoyed a decent 50-odd year experiment with mixed capitalist/socialist economies. The experiment was a failure, and it's taking a while for Europe to complete the transition to a more market-based system" I would take issue with the "failure" part.

America and Europe are becoming more deregulated throughout much of their economies. They have sold off some state owned enterprises in the 1980s/1990s. But neither America or nor Europe will be leaving welfare (socialist) capitalism behind anytime soon. Governments will continue to provide unemployment, welfare, and some level of healthcare benefits. This system is becoming more market-based but I see that as a tweaking of the regulated market, not a fundamental shift such as happened in the 1980s. It was unsustainable but tweaking, not revolution is what was/is required.

I know we are moving off of the vacation topic, but I'm want to agree with Ryan on the term "failure". Our social experiment has failed and that failure was/is systemic. I also agree with Andy that the correction is a matter of tweaking as opposed to a revolution. This, however, is not because the socialism part of the experiment needed to be fixed. Instead, because of the mixture of the experimental approach, a revolution is not required. We never let go of the aspects of capitalism that have proven successful. These bulwarks of our economic success should remain and we should continue to root out the veiled threat of a socialistic government. I agree with Andy that governments will continue to be involved in funding activities that are rooted in socialistic philosophy. I do not, however, believe that is a good thing. Government welfare, unemployment, and healthcare systems should be kept to a minimum. (In a perfect world, these programs could be eliminated...but THAT would be Utopia! Or, on second thought, is that what we call Heaven?)