Paul Krugman, The New York Times, January 11, 2008
Today I’d like to talk about a much-derided contender making a surprising comeback, a comeback that calls into question much of the conventional wisdom of American politics. No, I’m not talking about a politician. I’m talking about an economy – specifically, the European economy, which many Americans assume is tired and spent but has lately been showing surprising vitality.
Why should Americans care about Europe’s economy? Well, for one thing, it’s big. The G.D.P. of the European Union is roughly comparable to that of the United States; the euro is almost as important a global currency as the dollar; and the governance of the world financial system is, for practical purposes, equally shared by the European Central Bank and the Federal Reserve.
But there’s another thing: it’s important to get the facts about Europe’s economy right because the alleged woes of that economy play an important role in American political discourse, usually as an excuse for the insecurities and injustices of our own society.
For example, does Hillary Clinton have a plan to cover the millions of Americans who lack health insurance? “She takes her inspiration from European bureaucracies,” sneers Mitt Romney.
Or are top U.S. executives grossly overpaid? According to a Times report, Michael Jensen, a professor emeritus at Harvard’s Graduate School of Business whose theories helped pave the way for gigantic paychecks, considers executive excess “an acceptable price to pay for an American economy that he believes has outstripped Japan and Europe in growth and prosperity.”
In fact, however, tales of a moribund Europe are greatly exaggerated.
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Paul Krugman: Europe, The Comeback Continent
Paul Krugman, The New York Times, January 11, 2008
Today I’d like to talk about a much-derided contender making a surprising comeback, a comeback that calls into question much of the conventional wisdom of American politics. No, I’m not talking about a politician. I’m talking about an economy – specifically, the European economy, which many Americans assume is tired and spent but has lately been showing surprising vitality.
Why should Americans care about Europe’s economy? Well, for one thing, it’s big. The G.D.P. of the European Union is roughly comparable to that of the United States; the euro is almost as important a global currency as the dollar; and the governance of the world financial system is, for practical purposes, equally shared by the European Central Bank and the Federal Reserve.
But there’s another thing: it’s important to get the facts about Europe’s economy right because the alleged woes of that economy play an important role in American political discourse, usually as an excuse for the insecurities and injustices of our own society.
For example, does Hillary Clinton have a plan to cover the millions of Americans who lack health insurance? “She takes her inspiration from European bureaucracies,” sneers Mitt Romney.
Or are top U.S. executives grossly overpaid? According to a Times report, Michael Jensen, a professor emeritus at Harvard’s Graduate School of Business whose theories helped pave the way for gigantic paychecks, considers executive excess “an acceptable price to pay for an American economy that he believes has outstripped Japan and Europe in growth and prosperity.”
In fact, however, tales of a moribund Europe are greatly exaggerated.
Read More Here