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Apr 11, 2007 -- "Flex security" smarter than unemployment

A lot of folks in the U.S. have suffered a job loss because someone overseas is willing to do the job for a lot less. Historically, our answer has been to collect extended unemployment insurance. Clark likes the way Denmark handles this problem. They do something called “flex security.” Denmark is a free-market economy willing to compete with anybody at anytime. Also, much like the States, companies can get rid of someone at will and they don’t have to provide a reason. But if you lose your job because of foreign competition, they subsidize pay and training at a new job. That helps eliminate the anger you may have had toward the foreigners who took your job and gives you skills for a new career. So, how’s it working? Unemployment in Denmark is 1 percent, which is great. We have a system in the States much like this called “wage insurance,” but we don’t use it very often. Clark hopes we start using this system more. It will help Americans be more competitive and is a smarter, more productive way to earn money.

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