Many conservatives claim that America's economic model is vastly
superior to Europe's, and cite poor economic growth and higher
unemployment in Europe to back their claim. This usually leads to a
whole line of argument about how business-friendly the American system
is. Then there is the line about the need to continue cutting taxes
and pushing deregulation to keep our economy humming along. All a very
interesting story, which would potentially be salient if it were not
built on sand. A closer look at the numbers shows that it is not so
much that the US economy is growing faster than Europe's economy, but
that our population is growing faster. Hardly an encouraging trend
given the crumbling state of our infrastructure, and our continuing
inability to manage sustainable population growth. As to unemployment,
I have yet to see any solid methodology to allow for comparisons
between American and European unemployment rates, but many economists
believe that our unemployment is close to the 10-12% we belittle the
Europeans for maintaining. That's right, despite the higher taxation,
government funded safety net, regulation, etc., European economies are
actually just as healthy as ours. And it is hard to imagine that
anyone would choose long-term unemployment in the US over long-term
unemployment in Europe. Or, for that matter, bottom-of-the-wage-scale
employment.
If the conservatives are correct, and our economy would tank if we
had European levels of taxation and regulation, Then we are doing
something really wrong. If our economy would continue to chug along
with that higher taxation and regulation, then it is reprehensible
that we are slashing government services to the poor and middle class
and trashing our environment just to enrich our richest citizens. So
which is it: our economic model sucks and it is only low taxation and
deregulation that allows us to be in the same league as the Europeans;
or is it the case that all of those tax cuts and deregulation efforts
really are just screwing regular citizens to make the rich richer?