The issue of race has cast a long and often ugly shadow over American life. That's hardly news, but some serious economic research has found that the effects of race and racism extend farther that we might suspect.
Many observers have noticed that the capitalist economies of Western Europe tend to spend more public resources than the United States on social programs such as old age, disability and survivor's pensions; family and child benefits; and unemployment and labor market programs. These nations also have some form of universal health care, although they spend less of their gross domestic product (GDP) on this than we do.
Harvard economists Alberto Alesina and Edward Glaeser, and Bruce Sacerdote of Dartmouth College investigated this issue. In 2001, they published a paper titled "Why Doesn't the United States Have a European-Style Welfare State?" (Note: the term "welfare state" as used here doesn't refer simply to programs that attempt to assist the poorest families but rather a range of programs and benefits across the population.) They found that many things influenced these differences, such as different attitudes about inequality, different histories, economic and constitutional factors. But one of the biggest factors is the issue of race.
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