Thursday, August 13, 2009
European economy contracts by only 0.1% in Q2...and we mock them for being Socialists!
The European economy clearly outperformed the U.S. economy in the second quarter--and has been outperforming it for some time based upon total output and employment. We mock them for being Socialists, yet, their policies are producing higher levels of wealth than ours. And imagine if their governments had the ability to credit bank accounts as we do here? Remember, countries in the Eurozone are functionally like states within the U.S. so they cannot just pull money out of the air like the Federal Gov't can. Germany, France, Spain, Italy and the rest of the Eurozone member states are constrained, yet, their social support systems sustain output, incomes and living standards to a higher degree than what we see here. Our blind, "Free market capitalism" mantra is so worshipped in this country, that even when it produces a weaker result we stand ready to die by it.