Is there a payoff to the United States’ extreme social model?

The United States’ social model is extreme: income distribution is heavily skewed against wage earners, there is weak social welfare and very high inequality and poverty. We wonder whether there is a payoff to such an unfavourable social model: does it encourage technological progress, innovation and corporate modernisation in the United States? The argument would be that labour market flexibility, the low tax burden and high profitability have positive effects on the determinants of growth. A comparison between the United States and Germany or France shows a higher level of labour productivity in the United States than in Germany or France, but a lower corporate innovation and modernisation effort in the United States than in Germany . This raises doubt about the soundness of the US social model.