FGV Administração 2010 – Questão 40

Linguagens / Inglês / Text Comprehension / Extract important information from the text
THE FINANCIAL PAGE
1 Since most European countries have an elaborate social safety net, a recession has a less dramatic impact on people’s daily lives. In the U.S., unemployment insurance pays relatively little and runs out relatively quickly, so losing a job usually means a precipitous decline in income. In European countries, unemployment benefits are typically substantial and long-lasting. This is not entirely a plus – it probably makes unemployment higher than it otherwise would be – but in hard times it keeps money in people’s pockets. (And paying for it means that European government spending automatically rises quite a bit during recessions.) Furthermore, universal health care enables Europeans to see a doctor even if they’re out of work.
2 None of this means that Europeans are indifferent to recessions or unemployment. But it does reduce the pressure to get their economies moving again at any cost. Furthermore, there seems to be an underlying difference in psychology. Americans talk a good game about the need for balanced budgets and fiscal responsibility, but we've proved ourselves happy to borrow trillions in order to maintain our life styles. And, while Americans hate inflation, they love economic growth more: the Federal Reserve's mission is not just to fight inflation but also to maximize employment. Europe runs a much tighter ship: if a European Union member has a deficit of greater than three per cent of G.D.P., it’s subject to disciplinary action. And the European Central Bank has only one mandate: keep inflation low.
James Surowiecki
THE NEW YORKER, MARCH 30, 2009
According to the information in the article, one disadvantage of European unemployment benefits is that they
a) make it very hard to fire an employee for just cause.
b) may very likely increase the unemployment rate.
c) encourage employers to hire illegal immigrants.
d) encourage people to work in the informal economy.
e) are very often substantial and long-lasting.

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