French Family Values

http://www.nytimes.com/2005/07/29/opinion/29krugman.html?_r=2

By PAUL KRUGMAN
Published: July 29, 2005

Americans tend to believe that we do everything better than anyone else. That belief makes it hard for us to learn from others. For example, I've found that many people refuse to believe that Europe has anything to teach us about health care policy. After all, they say, how can Europeans be good at health care when their economies are such failures?

Now, there's no reason a country can't have both an excellent health care system and a troubled economy (or vice versa). But are European economies really doing that badly?

The answer is no. Americans are doing a lot of strutting these days, but a head-to-head comparison between the economies of the United States and Europe - France, in particular - shows that the big difference is in priorities, not performance. We're talking about two highly productive societies that have made a different tradeoff between work and family time. And there's a lot to be said for the French choice.

First things first: given all the bad-mouthing the French receive, you may be surprised that I describe their society as "productive." Yet according to the Organization for Economic Cooperation and Development, productivity in France - G.D.P. per hour worked - is actually a bit higher than in the United States.

It's true that France's G.D.P. per person is well below that of the United States. But that's because French workers spend more time with their families.

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The French family, without question, has lower disposable income. This translates into lower personal consumption: a smaller car, a smaller house, less eating out.

But there are compensations for this lower level of consumption. Because French schools are good across the country, the French family doesn't have to worry as much about getting its children into a good school district. Nor does the French family, with guaranteed access to excellent health care, have to worry about losing health insurance or being driven into bankruptcy by medical bills.

Perhaps even more important, however, the members of that French family are compensated for their lower income with much more time together. Fully employed French workers average about seven weeks of paid vacation a year. In America, that figure is less than four.

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American conservatives despise European welfare states like France. Yet many of them stress the importance of "family values." And whatever else you may say about French economic policies, they seem extremely supportive of the family as an institution.