The US is deploying approximately 25% of its GDP to bolster the economy in comparison to a more timid approach from Europe, the former will likely prove better for labour market recovery.
There is now hope that the global economic situation will rebound as the pace of vaccination picks up. It is, therefore, the time to take stock of the crisis in the northern hemisphere but, unfortunately, this balance sheet does not turn out well for Europe.
Although the US got off to a late start with anti-coronavirus measures last year, it reacted very quickly to the massive economic slump and is now in a comparatively better position. Furthermore, the US vaccination rollout is picking up and Washington has launched a massive stimulus program to boost the economy. Once again, Europe has to reflect on why we risk permanent damage while the US is acting quickly and decisively.
Where does Europe stand?...
The EZ is hamstrung by the Maastricht Treaty. Having forfeited currency sovereignty, EZ governments are dependent on the ECB.
Flassbeck Economics InternationalPublic Investment: why America’s “more” is better than Europe’s “too little”
Heiner Flassbeck
5 comments:
US is more apt to take drugs....
No one learned anything from 2008? The US basically hit a speed bump, albeit a large one, while Germany, an economic powerhouse of Europe took 10 years just to get gdp back to where it was. Other eu states had to export their young workers. They'll never really make up for the damage and they're just gonna inflict more.
Let’s see what they do if EUR/USD goes back under 1.10
https://www.bloomberg.com/news/articles/2021-04-01/u-s-style-fiscal-boost-isn-t-answer-for-europe-weidmann-says
Germany says EZ is good to go...
The European states gave their population far more help than the Americans did with less job loss, so they may not need as big of stimulus as the US now and could rebound quickly. But the states now have a lot of red ink. Dollars to donuts the ez is going to make them impose austerity. Lather, rinse, repeat.
Growsterity anyone?
Will forcing 10% of your population to emigrate still be considered a success story?
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