The Coming Europeanization Of The U.S. Economy?

Good News: In the last 15 years from 1994 to 2008, the U.S. jobless rate has never exceeded 7% and has averaged 5.1%. In contrast, other developed economies in Europe like Germany have never had a jobless rate less than 7% during that period, and German unemployment has averaged 8.7% (see chart above).

Bad News: The U.S. jobless rate is now approaching Germany’s, and is within 1% of Germany’s unemployment rate for the first time in at least 15 years (see chart above). Could this be signalling the “The Europeanization of America” (more protectionism, higher taxes, more regulation, more government spending, and increased strength of labor unions)?

Subscribe by RSS Subscribe by Email