We Must Stop Unioinization From Making Us More Like Europe!

John Stossel on Mar 5, 2025

America needs more rules to protect workers, say some from both parties. Sen. Josh Hawley wants more rules empowering unions. Barack Obama's Labor Secretary says there's "no fairness, no equity, no concern for safety, no concern for children, even!"

European countries, they say, have more laws protecting workers, and so "Europe is better."

That's nonsense, says economist Sven Larson in my new video. He grew up in Sweden, but now says, "If you're a worker, you don't want to live in Sweden!"

One reason is that unemployment is 10%. "If you get fired," says Larson, "There's no job out there for you." Years ago, America's economy grew neck and neck with the European Union's. Then, about 15 years ago, Europe stopped growing.

Today, the USA is 50% richer -- even though the European Union has 100 million more people.

Europe is kind of like a big museum. Tourist money keeps it going, but there's so little growth that, per person, America's poorest state (Mississippi) is now richer than most European countries. The reason is the very same policies ignorant Americans want to copy -- like higher taxes on the rich.

"But what do you do when you run out of the rich?" asks Larson. "Tax the almost rich. Then you run out of them."

But some Americans today are absurdly rich.

Even "if you add up all the value these individuals have," he replies, "it's nowhere near enough to pay the obligations that the federal government has." So, tax is taken from the average worker.

In Sweden, he says, "Average workers pay (a higher percentage of) taxes than you do if you make $400,000 here in the United States." But at least their health care is free.

"No!" he replies. "You get the right to free health care, but whether you get health care is a different story. I have friends who died in the Swedish health care system because they couldn't get treatment in time."

Still, Europe offers generous welfare benefits.

"They take care of people!" I tell Larson.

"But it also entraps you," he says. "People get stuck in low-end jobs. They don't start businesses like we do."

One reason they don't start businesses is because Europe's rules meant to "protect" workers make it hard to fire lazy ones.

"You have to go through an extremely bureaucratic sequence," says Larson. "Government will decide whether you are right in saying this person is not doing his job. ... Why would you hire anybody when you are essentially responsible for them for the rest of your life?!"

I wouldn't. It's a big reason why the unemployment rate in Europe is 50% higher than in the U.S.

I often complain about America's excessive regulations. But Europe has many more.

"Here in America," says Larson, "You can put a sticker on a pickup truck that says, 'Bob the carpenter,' and you have a small business. You can start making money. In Europe, you have to wade through fees ... talk to bureaucrats."

EU rules also protect unions.

In Sweden, says Larson, "(Unions) can act like a mafia, force utility companies to shut off power, stop garbage collections, stop banks from processing your checks."

They do. Unions punished non-union Tesla by refusing to deliver new license plates.

That union power, excessive regulation and high taxes are why Europe now has zero of the world's largest companies. The list constantly changes, but as I write, no European company is in the top 20. American firms lead the list.

I ask Larson, "Don't European governments see what this has done to their economies and change these rules?"

"No," he answers. "A lot of politicians thrive on having a population dependent on government because you get a lot of votes from a lot of people who depend on government. America still has this spirit of understanding that you can actually make life better for yourself, which I don't find in Europe."

We do have that spirit, now. But it's challenged by the 300,000 bureaucrats who write and enforce regulation. And that's just federal regulators. States and cities employ even more!

That's a lot of people who believe that if they're not adding more rules, they're not doing their job.

Stop them before they make America as stagnant as Europe.

========

Every Tuesday at JohnStossel.com, Stossel posts a new video about the battle between government and freedom.