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  • Declining Economic Dynamism in the Euro Zone…. A warning for the U.S.

    The eleven year old euro zone, the world’s second largest economy after the U.S., confronts a cold reality: its members lost economic vitality over the euro’s first decade, as shown in this WSJ chart. The WSJ reports:

    [The] appetite for structural overhaul is low among Europeans, who have long believed that capitalism should be tempered by generous state benefits and strong labor protections. Even in the best of times, Europeans are loath to move toward a U.S.-style economic model, which they criticize for leaving citizens to sink or swim. In bad times, voters tend to demand economic security over change. French conservatives’ stinging defeat in regional elections over the weekend was a warning that many people voters have soured on President Nicolas Sarkozy’s bid to make France more business friendly and reduce some welfare benefits.

    Whether in the euro zone or in the U.S., policy choices made now will shape the growth trajectory for years to come. Policy makers need to remind their publics of the key role economic freedom plays in enhancing competitiveness and prosperity. It is economic freedom that empowers ordinary people, compensates hard work, and sparks innovative solutions from entrepreneurs. In fact, economic success in today’s global economy has proven to be next to impossible to sustain without a consistent policy environment that favors innovation and entrepreneurship. As shown in the 2010 Index of Economic Freedom, volumes of empirical research confirm a strong link between greater economic freedom and higher innovative capacity.

    Government welfare may seem to promise security. What it delivers is economic stagnation. Now is the time to restore the path of economic dynamism that can only come from economic freedom.

    Posted in International [slideshow_deploy]

    4 Responses to Declining Economic Dynamism in the Euro Zone…. A warning for the U.S.

    1. Dan, Bakersfield says:

      I'm sure under Obama and the Democrats we will get down or under Europe's anemic growth.

    2. Ben C. Ann Arbor, MI says:

      "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years.

      Great nations rise and fall. The people go from bondage to spiritual truth, to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency"

      Alexander Tyler. Scottish historian quoting from others.

      It amazes me that the cycle continues. Doesn't anyone ever read a history book?

    3. Vladimir Kavan, Cara says:

      I have relatives in Europe,…, they are continually on vacation trips.

    4. Frank, Wisconsin says:

      my relatives in Italy are crammed into one house….4 generations of people. they have lots of vacation time but no money so can't go far. I bought my house at age 31. they rarely fly to usa but I am expected to fly over there. we give them money for groceries and such but if they happen to come out here they don't give us anything. I can buy Italian goods here for a 1/3 the price of what they pay for the same thing in their own country. some of my family is always on Facebook and I am lucky if I log into my account every two weeks. it is a different lifestyle and they live with less.

      I am not at all interested in the european socialist-welfare lifestyle ! I am a capitalist pig !

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