Planet Money – Vacation, and why the U.S. takes so little of it

Intro

In this episode of Planet Money, the host explores the topic of vacation and why the United States takes so little of it compared to European countries. The episode delves into the cultural, historical, and economic factors that contribute to this disparity. It sheds light on the lack of guaranteed paid vacation days in the US, the influence of the Puritan work ethic, the role of unions, and the impact of racism on worker benefits. Through interviews with experts and analysis of data, the episode aims to understand why Americans prioritize work over leisure and the potential consequences of this mindset.

Main Takeaways

European countries prioritize vacation and have guaranteed paid vacation days

• European businesses are closed during the summer, and workers have guaranteed paid vacation days.
• Europeans value leisure time and prioritize the right to vacations.
• Europe’s long tradition of festivals and customs contributes to the emphasis on downtime.

The US has zero guaranteed paid vacation days by law

• US workers often don’t take all of the vacation days they are given.
• The US is an outlier among rich countries in terms of not guaranteeing paid vacation days.
• In 2018, US workers left 768 million days of earned vacation on the table, forfeiting about $65 billion worth of vacation benefits.

The influence of the Puritan work ethic

• The Puritan or Protestant work ethic is a commonly held belief that Americans have a deeply ingrained work ethic stemming from religion.
• Americans prioritize work and view leisure as less important.
• The Protestant work ethic originated in Switzerland with the Calvinists who have four or five weeks of paid vacation.

Unions and worker benefits

• Unions played a role in obtaining worker benefits in the 1930s.
• Businesses regained power and resisted federal mandates for worker benefits.
• The US did not get guaranteed paid vacation, pensions, and health insurance through federal policy but instead got collective bargaining rights.

Economic factors and cultural differences

• Economists believe that lower income tax in the US incentivizes people to work more than in Europe.
• People in the US who do not get paid vacation have bigger incentives to work instead of taking time off.
• The argument that Americans work more to buy more because of advertisements doesn’t hold up.
• The US has a reputation for valuing money over time, while Europeans have a reputation for valuing leisure.

Summary

The cultural and historical factors influencing vacation in the US and Europe

European countries have a different relationship with work compared to the US. They prioritize vacation and have guaranteed paid vacation days, while the US has zero guaranteed paid vacation days by law. Europeans value leisure time and have a long tradition of festivals and customs that contribute to the emphasis on downtime. In contrast, the US has a deeply ingrained work ethic influenced by the Puritan or Protestant belief system. The Protestant work ethic originated in Switzerland, where workers have four or five weeks of paid vacation. These cultural and historical differences shape the attitudes towards work and leisure in both regions.

The role of unions and worker benefits

Unions played a role in obtaining worker benefits in the US in the 1930s. However, businesses regained power and resisted federal mandates for worker benefits. Instead of getting guaranteed paid vacation, pensions, and health insurance through federal policy, the US obtained collective bargaining rights. This approach led to a negotiation-based system for work benefits, with vacation often being at the bottom of the list. The influence of unions and the power dynamics between businesses and workers have shaped the availability and prioritization of vacation in the US.

Economic factors and cultural differences

Economists suggest that lower income tax in the US incentivizes people to work more than in Europe, where taxes are higher. People in the US who do not receive paid vacation may have bigger incentives to work instead of taking time off. However, the difference in work hours between the US and Europe cannot be solely attributed to income tax. Cultural differences also play a role, with the US valuing money and the need to pay for necessities like health insurance. Advertising and intelligence are not determining factors, as both the US and Europe have similar levels of advertising, and Europeans are not inherently smarter than Americans. Understanding these economic factors and cultural differences is crucial in addressing the lack of guaranteed paid vacation in the US.

Conclusion

The US stands out among rich countries for not guaranteeing paid vacation days. The cultural, historical, and economic factors explored in this episode shed light on why Americans prioritize work over leisure. While the influence of the Puritan work ethic, the role of unions, and economic incentives contribute to this mindset, questioning and discussing the importance of vacation can help change the culture and stimulate a shift towards valuing leisure time. Recognizing the benefits of vacation, both for individuals and the overall well-being of society, is essential in creating a healthier work-life balance.