The Netherlands is a welfare state which means the government plays an active role in ensuring the welfare and the well being of people. There are three welfare models: the Scandinavian model, the Anglo-Saxon model and the Rhineland model. They differ in the way of how the government interferes with the citizen’s way of living. An important aspect is the solidarity concept, but what should the level of solidarity be?
The model that has the most government interference is the Scandinavian model. The keyword is flexicurity: a flexible labour market with a strong social security system. The ideology of this model is that everybody deserves a good basic life.
Some advantages of this system are that people can find another job easily, and if it takes a longer while the unemployed get a training course available. During the unemployment they get good benefits on the term that you keep training to get a new job. Because of these factors the people are never unemployed for a long period of time. The people also get high benefits and a substantial parental leave of 96 days. There are also great efforts made in the education and child care which results in a relatively high participation of women in the labour market.
The same flexicurity principle also causes disadvantages such as the easy dismissal of employees because of the flexible labour market. Another disadvantage is the heavy tax burden caused by the high benefits and long maternity leave. The long- lasting maternity leave is also a disadvantage for the companies. You are well treated by the government but it comes at a cost.
The Anglo-Saxon model is almost the opposite of the Scandinavian model. In this model the goal is to create a good entrepreneurial climate. To make this possible they have set up a flexible labour market, so the wages are determined by the market forces. Liberal values such as freedom and self sufficiency are considered important. The social security system is minimal and so is the interference of the government. The ideology is that the people who are successful should be rewarded and the people who are not should accept the consequences.
The advantages of this system are that you do not have to pay many taxes and premiums. This results in an enormous possibility for economic growth; you can really be successful (with your company). Once you have made it, you are rewarded with the fact you have to pay fewer taxes than the people with a regular loan.
The advantages also come with some disadvantages: the fact that you do not have to pay many taxes and premiums has the consequence that the social security is minimal and that there are not many collective services. You need to pay for many things yourself such as the healthcare and the education. Some people can not afford paying for all these facilities which causes a big gap in the living standards between rich and poor. People also have to work very hard to be able to pay for all the private facilities. They are also afraid to get fired, because there is almost no social security, so then you are on your own.
The model that is a kind of combination of the Scandinavian and the Anglo-Saxon model, is the Rhineland model. This model has got a big collective sector and a harmonious collaboration between the government, the employers’ organizations and the trade unions. Social security plays an important role in this model. The ideology is that there should be a right division between the amount of taxes paid and the role of social security and the collective sector.
The advantages of this model are the fact that the employees are well protected against the risk of dismissal and illness. There are unemployment benefits implemented via the UWV. There are retirement premiums so you can continue to have a good income after your retirement.
This system comes with some disadvantages as well such as the fact that women do not benefit well from the retirement premiums because those are based on the time you have worked for a company. The education and child care is not as well regulated as it is in the Scandinavian countries. The taxes and premiums are increasing, but the benefits for the people are not, which results in an increasing opposition of the Rhineland model.
The article clearly promotes the Scandinavian model by presenting arguments and examples of the good sides of the Scandinavian model. The article already starts off with “generous social benefits are not always a barrier to high employment rates”. This shows off in the fact that the highest employment rates are in the countries with the highest taxes and the most generous welfare system. This is caused by the public services such as subsidized child and elderly care, the generous sick leave policies, good education and the cheap and accessible transportation. These are all part of a well-working welfare plan: it is more important in which way the money is spent rather than how much is spent. The article keeps comparing the Scandinavian model to the Anglo-Saxon model which is used in America by presenting examples how America could stimulate the people in another way than with low taxes. Instead they could use the social system to promote working. The article wants to make clear that a way that makes it is easier to work, causes more people to start working. The Scandinavian government policy is a good example of this because they do everything to make it as easy as possible to work.
My personal preference would be the Scandinavian welfare system. This is because this system makes sure everybody has a good basic life and many people work. You do have to pay high taxes but the government also rewards you with many benefits such as the subsidized child care, the extensive parental leave, the good education, a high minimum wage and cheap and accessible transportation.
The people are also stimulated more to work because they want to do something back for their country; they are very grateful for all the benefits, so they would not dare to cheat on the system. This welfare system is very well organized because many people work and in that way the government costs can be divided over a big number of people—> the costs per person drop considerably. Actually it is a reenforcing circle: thanks to those benefits you are able to work more/ they make it easier to work and so you are able to pay the high taxes.
The Anglo-Saxon model is in my opinion the survival of the fittest. The people are either treated very well or very badly. People are living in horrible circumstances under the poverty line in America, which is a shame for a Western world country!
The Rhineland model is trying to find a balance between the Anglo- Saxon model and the Scandinavian model but the result is a suboptimal solution in my opinion.
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