As economist Paul Krugman noted after reading [a study on
economy]: “One more American myth bites the dust.” Indeed it has. And as both the authors of the paper and Krugman note, there is a plausible explanation for the US ’s low score in the small business contest: our lack of national health insurance. US
There are enough risks associated with choosing to start a business over being an employee, but the Europeans don’t have to worry that they will go bankrupt for lack of health insurance.
(SBW17, The Star, Aug 15, 2009)
Mark Weisbrot’s comments on the
Somehow, welfare is a double-edged sword. For those who are willing to take risk, it serves as a safety net. Europeans and Americans are more willing to start their own businesses because they know that should they fail, they can still survive on unemployment fund or other forms of welfare.
Heck, if Malaysian government provides decent safety net, I also want to be my own boss!