Wednesday, October 26, 2005

Europe or Growth

I am amazed at the contrast of Europe. How it can be such a beautiful place that's a joy to visit, to live in also, I presume. But its countries are suffering from self-inflicted wounds of the welfare state. High taxes cause low growth, few jobs created and unemployment rates in the double digits. James Glassman analyzes the situation:
Europe, or at least the parts I go to, is a wonderful place to live and to visit. It's beautiful; the food is great; the people are generally warm and relaxed. If there is a greater pleasure than eating a plate of Insalata Caprese (tomatoes, mozzarella, basil and cold-pressed extra-virgin olive oil) on a sunny terrace on the Amalfi Coast with the islands where the Sirens lured Ulysses in the distance, then I haven't found it yet. But, when it comes to public policy, Europe has taken a wrong turn.
And he asks if the US is going the way of Europe.
I worry that we are beginning to see the initial signs of just such a turn for the worse. A distinguished 20-member panel of experts convened by the National Academies, America's top science advisory group, has warned in a new study that the U.S. "could soon lose its privileged position" as the world's top innovator and growth engine. With competitors "who live just a mouse click away," we stand to lose high-paying jobs, especially to Asia

No comments: