Europe Will Not Grow Its Way Out Of This Debt Crisis
One thing that the United States still has going for it that Europe does not is an economy capable of rapid expansion. Because the US is still predominantly a capitalist society, it still has the ability for very rapid growths in productivity. The socialists in Europe do not have this ability. They lost it decades ago.
If consumer confidence improves enough in the US where people start committing to large ticket purchases, companies will begin hiring again. If companies begin hiring again, the economic problems we are facing right now will begin to fade.
In most countries in Europe, government taxation is a very big drag on the economy. The people also tend to work fewer hours per week. There is also a lot less manufacturing. All of these things are more links in the chain that is going to keep Europe shackled for the next decade. Unfortunately, the US is not immune to problems in Europe. The worse their economy gets, the worse our economy gets. The world is flat and very much interdependent.
The United States economy is much more elastic and much more resilient than other economies in the world. If need be, the United States can monetize its way out of its debt problems. Hopefully that doesn’t happen. If it does though, you had better own gold or something else that doesn’t lose its value.
If people in the US don’t wake up and start holding politicians accountable for overspending, the United States will soon be in the exact same boat as Europe. Then we will not be able to get ourselves out of messes like this.
