Passing the Buck: Why We Make Less But Pay More Part 14: What We Could Have Instead

It Works Elsewhere

For 13 parts, we’ve shown you how broken the American system is. How costs have been shifted onto workers. How the math doesn’t work. How both parties protect corporate interests.

Now we need to show you something crucial: It doesn’t have to be this way.

Other developed countries face the same global economy, the same technology, the same corporate pressure. They’ve made different choices. And those choices work.

Let’s look at what Emma’s life would be like if she lived in countries that chose differently.

Emma in Germany: Same Job, Different Math

Remember Emma from Parts 10 and 11:

• Nurse making $77,000/year in the U.S.
• Take-home: $4,575/month
• After mandatory expenses: $253/month remaining
• Can’t save, can’t buy a house, one emergency from debt

What if Emma lived in Germany, doing the same job?

Income and Taxes

German nurse salary: €52,000/year (~$56,680 at current exchange rates)

“Wait, that’s less!” Yes, gross income is lower. But watch what happens to her take-home and expenses.

German taxes and social insurance (married, no kids):

• Income tax: €8,840
• Solidarity surcharge: €486
• Health insurance: €3,900 (7.5% of salary, covers everything)
• Pension insurance: €4,836 (9.3%)
• Unemployment insurance: €624 (1.2%)
• Long-term care insurance: €936 (1.8%)

Total deductions: €19,622 Take-home: €32,378 (~$35,300/year or $2,942/month)

Emma’s take-home is lower in Germany ($2,942 vs. $4,575 in U.S.). But now let’s look at her expenses.

Housing: €1,000/month ($1,090)

Emma rents a one-bedroom apartment in Munich (expensive German city, comparable to her mid-sized U.S. city).

Included in rent:

• Heat
• Water
• Building maintenance
• Property tax (paid by landlord)

Not included:

• Electricity: €60/month
• Internet: €40/month

Total housing costs: €1,100/month ($1,199)

U.S. equivalent: $1,725 (rent $1,450 + utilities $275)

German savings: $526/month

Healthcare: €0 additional

Remember, Emma already paid health insurance in her taxes (€3,900/year or €325/month).

What that covers:

• All doctor visits: €0 co-pay
• All hospital stays: €10/day for first 28 days/year
• All prescriptions: €5-10 per prescription
• Dental: Covered (basic), cosmetic extra
• Vision: Exam covered, glasses subsidized
• Mental health: Fully covered

No deductible. No out-of-pocket maximum. No denial of claims. No network restrictions.

Emma’s annual healthcare costs beyond the insurance payment: ~€200 ($218)

U.S. equivalent: $6,300 (Part 10)

German savings: $6,082/year ($507/month)

Transportation: €180/month ($196)

Emma doesn’t own a car. She doesn’t need one.

Munich public transit (MVV):

• Monthly unlimited pass: €60 ($65)
• Covers subway, trams, buses, regional trains
• Runs 4 AM to 2 AM, every 5-10 minutes
• Clean, reliable, on-time

Bike:

• One-time purchase: €400
• Maintenance: €60/year
• Munich has 1,200 km of bike lanes

Occasional car sharing (when needed):

• €60/month

Total transportation: €180/month

U.S. equivalent: $817/month (Part 5)

German savings: $621/month

Food: €350/month ($382)

German grocery prices are lower than U.S. despite higher wages:

• Aldi (German company): €250/month
• Occasional eating out: €100/month

U.S. equivalent: $450/month

German savings: $68/month

Student Loans: €0

German university tuition: €0 (free at public universities)

Emma graduated with zero debt.

U.S. equivalent: $340/month

German savings: $340/month

Phone/Internet: €80/month ($87)

• Internet: €40/month (100 Mbps)
• Cell phone: €40/month (unlimited data)

No equipment rental fees. No hidden charges. No monopoly pricing.

U.S. equivalent: $164/month

German savings: $77/month

Banking: €0

German current accounts (checking) are free. No minimum balance. No monthly fees. No ATM fees at your bank’s ATMs.

U.S. equivalent: $133/month (credit card interest, bank fees, ATM fees)

German savings: $133/month

Emma has no credit card debt in Germany because she didn’t need to use credit cards for medical bills or car repairs.

Insurance (Beyond Health): €50/month ($54)

• Renters insurance: €10/month
• Personal liability insurance: €40/month (covers accidental damage to others’ property, highly recommended)

No auto insurance needed (no car).

U.S. equivalent: $340/month (auto + renters + other insurance beyond health)

German savings: $286/month

Emma’s German Budget Summary

Monthly income (after taxes): €2,698 ($2,942)

Monthly expenses:

• Housing: €1,100 ($1,199)
• Healthcare (beyond insurance): €17 ($18)
• Transportation: €180 ($196)
• Food: €350 ($382)
• Phone/Internet: €80 ($87)
• Banking: €0
• Insurance: €50 ($54)
• Necessities: €150 ($164)

Total monthly expenses: €1,927 ($2,100)

Remaining: €771/month ($841)

The Comparison

Emma in U.S.:

• Take-home: $4,575/month
• Expenses: $4,322/month
• Remaining: $253/month (5.5% of take-home)

Emma in Germany:

• Take-home: $2,942/month
• Expenses: $2,100/month
• Remaining: $841/month (28.6% of take-home)

Emma makes $1,633/month LESS in Germany but has $588/month MORE remaining.

Why?

• Healthcare: Included, comprehensive, no denial of care
• Transportation: Public transit works, no car needed
• Education: Was free, no student loans
• Housing: Slightly cheaper, utilities included
• Banking: No fee extraction, no credit card debt spiral

What Emma can do with that €771/month:

• Save for house down payment: €400/month = €28,800 in 6 years
• Retirement savings: €200/month (in addition to mandatory pension)
• Vacation: €100/month = €1,200/year for travel
• Entertainment and quality of life: €71/month

She can actually live.

How Germany Does It: The Policies

1. Universal Healthcare (Statutory Health Insurance)

System:

• Everyone must have insurance
• Choice between ~100 non-profit “sickness funds”
• Employers pay half, employees pay half (14.6% of salary split)
• Covers everyone regardless of pre-existing conditions
• No deductibles, minimal co-pays
• Cannot be denied care

Cost containment:

• Government negotiates drug prices (drugs cost 50-70% less than U.S.)
• Hospitals are not-for-profit or government-run
• Doctor salaries are good but not excessive (€65,000-180,000 vs. U.S. €200,000-400,000 for specialists)
• Administrative costs: 5-6% vs. U.S. 20-25%

Results:

• Life expectancy: 81.3 years (U.S.: 76.4)
• Infant mortality: 3.0 per 1,000 (U.S.: 5.4)
• Healthcare spending: 11.7% of GDP (U.S.: 16.6%)
• Per capita spending: $6,646 (U.S.: $12,555)

Germany spends half what the U.S. spends per person and has better health outcomes.

2. Free University Education

System:

• Public universities: €0 tuition (abolished fees in 2014)
• Small semester fee: €150-350 (covers transit pass and student services)
• Living expenses: Students responsible (can work part-time, get BAföG support)

Results:

• 51% of 25-34 year-olds have tertiary education
• Zero student loan debt for public university graduates
• Higher education accessible to all classes

3. Strong Labor Protections

Works Councils:

• Companies with 5+ employees must have worker representation
• Companies with 2,000+ employees: Workers get 50% of supervisory board seats
• Workers have say in major decisions (layoffs, restructuring, working conditions)

Union Coverage:

• 59% of workers covered by collective bargaining agreements
• Even in non-union shops, industry agreements often apply

Minimum Vacation:

• 20 days mandatory (most workers get 25-30)
• Plus 9-13 public holidays (varies by state)
• Paid sick leave (up to 6 weeks at full salary, then 70% for up to 78 weeks)

Firing Protections:

• After 6 months employment, firing requires “just cause”
• Severance required for economic layoffs
• Worker councils must be consulted

4. Public Transportation

Investment:

• Germany spends €10 billion/year on public transit
• €40 billion invested in rail infrastructure (2020-2030 plan)

Results:

• 81% of Germans use public transit regularly
• 7,200 km of electrified rail
• Munich, Berlin, Hamburg have comprehensive subway/tram/bus networks

€49 Deutschland Ticket (2023):

• Unlimited travel on all regional trains, subways, trams, buses nationwide
• €49/month (~$53)

France: Another Model

Let’s see Emma’s budget in France (Paris, comparable to her U.S. city):

French nurse salary: €35,000/year (~$38,150)

Even lower gross! But watch:

Take-home after French taxes and social security: €27,000/year (€2,250/month or $2,453)

Monthly expenses:

• Rent (1-bedroom, Paris): €1,200 ($1,308)
• Healthcare beyond taxes: €50 ($54) (covers top-up insurance + co-pays)
• Transportation: €75 ($82) (Navigo pass for unlimited Paris transit)
• Food: €300 ($327)
• Phone/Internet: €70 ($76)
• Utilities: €100 ($109) (usually included in rent in Germany, separate in France)
• Necessities: €150 ($164)

Total: €1,945 ($2,120)

Remaining: €305/month ($333)

Better than U.S. Emma’s $253, despite making $38,890 less gross income.

French benefits:

• Healthcare: 70% covered by public system, 30% by supplemental (€50/month)
• University: €170-650/year at public universities
• 25 days minimum vacation (30 is common)
• 35-hour work week
• Extensive parental leave
• Retirement at 62-64 (recently raised, controversial)

Denmark: The “Flexicurity” Model

Danish approach: Make it easier to fire workers, but provide strong safety net.

Emma’s Danish nursing salary: 450,000 DKK/year (~$65,000)

Take-home: 285,000 DKK/year (~$41,200 or $3,433/month)

Higher taxes than U.S., but:

What’s included:

• Healthcare: Free
• University: Free (plus students receive monthly stipend)
• Childcare: Heavily subsidized (€200-400/month for full-time)
• Pension: Strong public system plus mandatory workplace pension

If unemployed:

• Unemployment insurance: 90% of previous salary for up to 2 years
• Job retraining: Free
• Job search support: Extensive

Results:

• Poverty rate: 5.8% (U.S.: 12.8%)
• Income inequality: Among lowest in developed world
• Happiness ranking: #2 globally (U.S.: #15)

Danish workers can take risks (start businesses, change careers) because the safety net exists.

Japan: Public Transit That Actually Works

Tokyo Metropolitan Area:

• Population: 37 million
• Car ownership: 45% of households DON’T own a car
• Why? Don’t need one.

Tokyo transit:

• 13 subway lines (Tokyo Metro + Toei)
• 23 JR East lines
• Multiple private rail lines
• Comprehensive bus network

Coverage:

• Can reach any destination in Tokyo in under 90 minutes
• Trains every 2-5 minutes during rush hour
• 97% on-time rate
• Clean, safe, efficient

Cost:

• Monthly pass (most of Tokyo): ¥20,000 (~$133)
• Compare to Emma’s U.S. car costs: $817/month

National rail:

• Tokyo to Osaka (340 miles): 2.5 hours, $120
• Compare to U.S. Amtrak or flying

Why it works:

• Government investment in rail
• Mixed-use zoning (can walk to shops, restaurants)
• Bike infrastructure
• Car ownership discouraged (expensive parking, tolls, insurance)

Canada: Healthcare Without Bankruptcy

Canadian system (single-payer):

• Each province runs healthcare
• Funded through taxes
• Everyone covered
• No premiums for core services
• No deductibles
• Choose your own doctor

What’s covered:

• All medically necessary hospital and physician services
• Free at point of service
• Prescription drugs: Varies by province (some covered, some subsidized)

What Emma would pay in Canada:

• Provincial health premium: $0-900/year (varies by province, income-based)
• Additional costs: Prescriptions (unless employer coverage), dental, vision
• Typical employer coverage: ~$1,200/year for supplemental

Total healthcare costs: ~$1,500-2,000/year

vs. U.S. Emma: $6,300/year

Savings: ~$4,500/year

Canadian outcomes:

• Life expectancy: 82.7 years (U.S.: 76.4)
• Infant mortality: 4.2 per 1,000 (U.S.: 5.4)
• Healthcare spending per capita: $5,905 (U.S.: $12,555)

The Common Threads

What do these countries do that the U.S. doesn’t?

1. Healthcare as Public Good, Not Profit Center

Germany, France, Canada, Denmark, Japan: Healthcare is a right

• Universal coverage
• Government negotiates prices (or sets them)
• Non-profit or government-run hospitals
• Administrative overhead: 5-10%

United States: Healthcare is a market

• Insurance companies profit from denials
• Pharmaceutical companies set prices
• For-profit hospitals
• Administrative overhead: 20-25%

Result: Other countries spend half per capita, get better outcomes

2. Education as Investment, Not Debt Sentence

Germany, France, Denmark: Free or very low-cost university

• Funded through taxes
• Students graduate debt-free
• Education seen as public investment

United States: Education as personal investment

• Average debt: $40,681
• Total student debt: $1.77 trillion
• Education seen as private good

3. Strong Labor Protections

Germany: Works councils, co-determination France: 35-hour week, strong unions, firing protections Denmark: Flexicurity (easy firing but strong safety net)

All provide:

• Mandatory vacation (20-30 days)
• Paid sick leave
• Parental leave
• Job protections or strong unemployment benefits

United States:

• No mandatory vacation (zero days)
• No mandatory sick leave
• No mandatory parental leave
• At-will employment (can be fired for any non-protected reason)
• Weak unemployment benefits

4. Public Transit Investment

Germany, France, Japan: Billions in transit investment

• Comprehensive networks
• Regular service
• Clean and safe
• Affordable

United States:

• Highways prioritized
• Transit chronically underfunded
• Car ownership mandatory in most areas

5. Housing Policy

Germany:

• Rent control in many cities
• Strong tenant protections
• Social housing (government-subsidized affordable housing)
• Long-term leases common

France:

• Rent control
• 20% of housing stock is social housing
• Strong tenant protections

United States:

• Weak rent control (banned in many states)
• Minimal tenant protections
• 1% public housing (and defunded)
• Landlord-friendly laws

The “But” Arguments (And Why They’re Wrong)

“But those countries have higher taxes!”

Yes. And?

Emma in Germany:

• Pays more in taxes: €19,622 vs. $22,100 (slightly more)
• But gets: Healthcare, free university, pension, unemployment insurance
• U.S. Emma pays for all those things out-of-pocket and still has less

Total cost matters, not just taxes.

“But they’re smaller countries!”

• Germany: 83 million people
• France: 68 million
• Japan: 125 million
• Canada: 39 million (spread across second-largest country by land)

Scale is not the issue. U.S. is larger, which should make some things (like healthcare negotiations) easier, not harder.

“But they’re more homogeneous!”

• Germany has 25% immigrant population
• France has significant diversity
• Canada has 22% immigrant population

Diversity is not the obstacle. Political will is.

“But they can do it because U.S. defends them!”

• Germany spends 1.5% of GDP on military
• U.S. spends 3.5% of GDP on military

If U.S. reduced to 2% of GDP (still high):

• Savings: ~$400 billion/year
• Could fund universal pre-K, free community college, and more

But the gap in healthcare spending alone is $1 trillion/year. Military spending doesn’t explain the difference.

“But their systems have wait times!”

Some do, for elective procedures. But:

• Emergency care: Immediate (same as U.S.)
• Cancer treatment: Fast-tracked (same as U.S.)
• Most specialist care: Faster than U.S. for uninsured/underinsured

And in the U.S., 23% of insured adults are “underinsured”—they have insurance they can’t afford to use.

What’s better: Waiting 3 weeks for a knee replacement, or never getting it because you can’t afford the $3,500 deductible?

“But socialism!”

• Germany: Market economy with social protections
• Denmark: Market economy with social protections
• All of these countries have private sectors, stock markets, capitalism

They just decided that some things (healthcare, education, basic security) shouldn’t be pure market transactions.

What Emma Could Have

Let’s summarize what Emma’s life could be like with different policy choices:

Universal Healthcare:

• Saves $6,082/year
• Never denied care
• No medical bankruptcy

Free University:

• Saves $4,080/year in loan payments
• No debt burden for life

Public Transit:

• Saves $621/month ($7,452/year)
• No car needed

Strong Labor Protections:

• Real vacation (25+ days vs. 10-15 U.S. average)
• Paid sick leave
• Can’t be fired without cause
• Retirement security

Result:

• More money remaining each month
• Better quality of life
• Less stress
• Actual ability to save, plan, live

And the kicker: These countries have HIGHER wages for median workers because unions are stronger.

Median household income (purchasing power parity, 2024):

• Denmark: $68,827
• Germany: $54,534
• France: $50,418
• United States: $70,784

U.S. is higher! But after mandatory expenses (healthcare, education, transportation), Americans have less.

It’s not how much you make. It’s what you can actually buy with it.

The Proof: It Works

These aren’t theoretical proposals. These are working systems. Right now.

Countries with universal healthcare:

• 32 out of 33 developed countries (U.S. is the exception)

Countries with free or low-cost university:

• Germany, France, Denmark, Sweden, Norway, Finland, Scotland, Argentina, and more

Countries with better public transit:

• Germany, France, Japan, South Korea, Netherlands, Switzerland, and more

Countries with stronger labor protections:

• Most of Europe, parts of Asia, some of Latin America

These policies exist. They work. They’re not radical.

The radical position is the U.S. system: Let people go bankrupt from medical bills. Trap students in debt for decades. Force car ownership. Bust unions. Stagnate wages while productivity soars.

That’s the outlier. That’s the extreme position.

What’s Next

Now you know:

• The system is broken (Parts 1-10)
• Who profits (Part 11)
• Both parties protect it (Part 12)
• How it was built (Part 13)
• It doesn’t have to be this way (Part 14)

In Part 15, we’re going to answer the final question: How do we actually get there?

Not vague platitudes. Not “vote harder.” Not naive optimism.

Real strategy. Real organizing. Real power-building. Real timeline.

Because Emma deserves what German Emma has. Because the median American worker deserves what the Danish worker has. Because it’s possible—we just have to fight for it.

Passing the Buck: Why We Pay More But Make Less is a 15-part series examining how corporations and government systematically shifted costs onto working Americans—while wages stagnated and benefits disappeared.