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business Monday 11 May 2020
Pandemic shows contrasts between U.S., European safety nets

By DAVID McHUGH In France, the totally dis-
AP Business Writer abled are eligible for pub-
The coronavirus pandemic lic health insurance pay-
is straining social safety nets ments of at least 292.80
across the globe — and euros ($311) a month and
underlining sharp differenc- no more than 1,714 euros
es in approach between ($1,825).
wealthy societies such as Those who are totally un-
the United States and Eu- able to work and also
rope. depend on help for daily
In Europe, the collapse tasks are eligible for 1,418
in business activity is trig- to 2,839 euros ($1,510 to
gering wage support pro- $3,027) a month. The pay-
grams that are keeping ments can be combined
millions on the job, for now. with other forms of in-
In contrast, in the United come and be subjected
States more than 33.5 mil- to tax and social security
lion people have applied contributions.q
for jobless benefits and the
unemployment rate has
soared to 14.7%. Congress
has passed $2 trillion in
emergency support, boost-
ing jobless benefits and In this Sunday, March 15, 2020 file photo, signs reading the request to close are stuck on a
writing stimulus checks of restaurant window, on the Champs Elysees in Paris. Associated Press
up to $1,200 per taxpayer.
That is a pattern seen in ear- mostly developed democ- pay most of worker sala- ily leave as of March 2018.
lier economic downturns, racies. The U.S. came last ries if companies put them Some states offer paid
particularly the global fi- in people living in relative on shorter hours through a family leave insurance for
nancial crisis and the Great poverty, meaning living on temporary disruption. More 4 to 10 weeks. The United
Recession. Europe de- half the median income or than 10 million workers are States is the only country in
pends on existing programs less, with 17.8%. Countries being paid that way in Ger- the OECD to not offer paid
kicking in that pump mon- like Iceland, Denmark, the many and about 12 million leave to new mothers.
ey into people's pockets. Czech Republic and Fin- in France, helping hold In France, by contrast,
The U.S., on the other hand, land have less than 6%. eurozone unemployment mothers are entitled to at
relies on Congress taking Here's a look at how the so- to only a 0.1 percentage least 16 weeks of leave for
action by passing emer- cial safety nets of the U.S. point increase in March their first child and must
gency stimulus programs, and Europe compare: over February, to 7.4%. take at least 8 weeks. From
as it did in 2009 under Presi- UNEMPLOYMENT BENEFITS The U.S. emergency pack- the third child onward,
dent Barack Obama, and Americans on unemploy- age included money for they are allowed 26 weeks.
the recent rescue pack- ment were collecting an cheap loans to businesses Workers get a daily mater-
age under President Don- average of about $372 that can be forgiven if the nity leave allowance of up
ald Trump. weekly before the coro- money is used mostly for to 89 euros ($94.50). But
In downturns, U.S. employ- navirus struck. But that av- payroll. some professions have their
ees can lose their health in- erage could range from HEALTH INSURANCE own more favorable deals,
surance if they lose their job $215 in Mississippi to $543 in Nearly half of Americans up to the complete pay-
and there's also a greater Hawaii. The rescue pack- receive health insurance ment of salaries.
risk of losing one's home age gave jobless work- through their employers, Denmark gives 52 weeks of
through foreclosure. On ers an additional $600 a while another 34% get ben- parental leave after a birth
the other hand, Europeans week through July. It also efits through the govern- or adoption, to be shared
typically pay higher taxes, extended benefits to those ment programs Medicare by the parents; whether at
meaning they earn less in who lost work as a result of and Medicaid. Separately, full salary or not depends
the good times. the coronavirus outbreak, 6% are insured individually on workplace agreements.
"In the U.S. you need to which could include par- and 9% in 2018 had no in- DISABILITY
keep pumping money ents who needed to leave surance at all. Roughly 8.3 million Ameri-
into the economy so that their jobs because schools In Europe, universal health cans collect disability ben-
people continue to be were closed. Most states of- coverage is the rule, gen- efits earned through Social
employed, because it is fer six months of unemploy- erally funded by payroll or Security contributions. The
through being employed ment but the emergency other taxes. One example payments average $15,100
that they are protected," legislation adds 13 weeks. is Britain's National Health annually — just above the
said Sapir. "Which is the By comparison, Germany's Service, which is funded by poverty level for a one-per-
better system? I'm not go- jobless benefit pays 60% of taxes and offers free care son household of $12,760.
ing into that discussion be- previous salary for a year. that costs the government Standards are strict and
cause that is really a huge France provides up to 75% 7% of GDP per year. most applications are de-
issue." of the previous average MATERNITY BENEFITS nied; people who don't
The U.S. tends to rank be- daily wage for up to two U.S. workers are entitled to qualify may wind up on
low average on measures years. Unemployment ben- unpaid family leave, but food stamps, a basic sub-
of social support among efits in France are on aver- no federal law requires pri- sistence program. The U.S.
the 37 countries of the Or- age 1,200 euros ($1,320) vate employers to provide ranks 30th among 36 OECD
ganization for Economic per month. paid family leave. In the pri- countries in spending on all
Development and Cooper- And there's Europe's short- vate sector, 16% of workers forms of disability related to
ation, whose members are hours programs, which had access to paid fam- work or illness.