Reading Paul Krugman´s European decline ( NYT)

EU: Where are you?
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January 9, 2010, 4:19 pm

There’s been a big to-do in the econoblogsphere over an essay by James Manzi in National Affairs; unfortunately for Manzi, it hasn’t been the kind of debate you want. Manzi asserts that having a European-style social democracy is terrible for growth:

From 1980 through today, America’s share of global output has been constant at about 21%. Europe’s share, meanwhile, has been collapsing in the face of global competition — going from a little less than 40% of global production in the 1970s to about 25% today. Opting for social democracy instead of innovative capitalism, Europe has ceded this share to China (predominantly), India, and the rest of the developing world.


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