american system no longer works

[joe sod]

Ireland has been a great follower of the american liberal economics for the last 15 years. This we have credited for our economic boom, the low taxation, flexible working hours, smaller government etc etc. We cannot understand what is wrong with the rest of Europe, why can't they be like us ,the best economy in europe.....We lecture them at every opportunity about how they need to liberalise their economies. It is amazing that a country that for so long was an economic basket case now has the confidence to lecture other countries on of all topics "economics".
Have we fallen hook line and sinker for a system which is now sick, which no longer works, which requires its citizens to consume more than they earn, which requires its citizens to become more and more indebted, which results in current account deficits. These are the characteritics of the anglo/american economies.Ireland has joined this club it now has a current account deficit for the first time since the mid eighties.
On the other hand Europe is not sick (contrary to many of our so called economic experts). It consumes less than it produces,it has plenty of savings, it has a current account surplus (it is the worlds biggest exporter mainly because of Germany).
Which economic system would you rather belong to, I would not bank on the anglo/american one. By the way I am not anti american just anti its current economic policies and the way ireland has swallowed it hook line and sinker

 

[ubiquitous]

unemployment?

 

[joe sod]

it can be argued that the anglo/american economies are over employed, too many bodies performing a task, too many hours used to perform a task. French workers are more productive than american ones, they need less bodies and less hours to perform a task. Its called efficiency. The reason the anglo/american economies have low unemployment levels is because they have been on the biggest consumption splurge in history. It will all end in tears though.

 

[Protocol]

Hmm, yes, French and German workers are more productive than UK or US workers.

But their incomes are lower, as they put in fewer hours, i.e. more unemployment overall.

But I'd have to agree that European unemployment is too high, that is a serious problem.