Europe’s Calm Summer Masking Big Trouble Ahead
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  • Corlyss

    Bus still teetering on edge of precipice. No news here. Check back when bus actually plummets into the chasm.

  • Anthony

    “In essence, Europe (and the West more generally) owes its recent tranquility to a series of experimental measures by central banks to offset the troubling combination of too little demand to generate sufficient job creation, inadequate structural reforms to revamp growth engines, debt overhangs that undermine productive investment, and insufficient policy coordination. Consequently, the resulting surface calm masks still-worrisome economic and financial fundamentals.” The aforementioned pretty well sums it up – complex unresolved long-term challenges remain.

  • Jacksonian_Libertarian

    According to the Rahn Curve
    a nation’s economic growth is maximized when the burden/spending of Government is between 15%-25% of GDP. Since, the socialist governments of the EU generally have a burden of 50% or greater, their growth rates will be tiny or negative for the foreseeable future, despite any so called austerity programs that really aren’t cuts in spending only reductions in the rate of spending growth.
    Anyone who understands compounding growth, understands that the loss of even 1% per year of growth due to the overburden of Government, significantly damages an economy over time. As an example take the growth rate of the US over the EU’s since Reagan. When Reagan took over, Europeans had a per capita income roughly equal to Americans, now it’s roughly 40% less.

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